Transcript Background on Nonprofit Boards A Primer Nonprofit Organizations     Revenue generated by a nonprofit organization (through donations, grants or corporate contributions, for example) is not.

Background on Nonprofit
Boards
A Primer
Nonprofit Organizations
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Revenue generated by a nonprofit organization (through donations,
grants or corporate contributions, for example) is not considered
profit and is not shared or distributed to stockholders. Instead, it is
reinvested into the organization for programs, services, future
development and growth.
Many nonprofits registered with the IRS are exempt from federal
income tax and donations to their organizations are tax-deductible.
Nonprofits have a board of directors composed of volunteers. The
board articulates the organization’s vision and mission, and governs
the organization. The board is usually headed by at least the
following officers: chair or president, vice-chair or vice-president,
secretary and treasurer.
Many nonprofits have paid staff. The chief staff person is usually
referred to as the CEO, president or executive director. Additional
staff depends on budget and workload needs.
READ, Inc. Organizational Structure
Board of Directors
Executive Director
Administrative
Assistant
Program Director
Service Coordinators
Office Manager
Community Education
Coordinator
Volunteer Tutors
Community Relations
Manager
Accounting Clerk
Grant Writer
Vision
A picture of the ideal nonprofit; one that can
meet all of its challenges and acquire the
necessary resources to accomplish them.
Mission
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A general statement of purpose:
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Why we exist and what we do.
Our philosophy and values.
Our target customer.
Board of Directors
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Composed of volunteers who serve as the
“trustees” of the organization.
Responsible for organizational vision and
mission.
Chief job of the board is governance.
The Meaning of Trustee
“Institutions need two kinds of leaders: those
who are inside and carry on the active day-today roles and those who stand outside but
are intimately concerned and who, with the
benefit of some detachment, oversee the
active leaders. These are the trustees.”
- Robert K. Greenleaf, The Servant as Leader, 1970
Board Member Qualifications
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Job description:
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Scope
Duties and responsibilities
Commitment (time, money, etc.)
Job specification:
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Skills
Knowledge
Awareness
Board Job Description
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Scope: The general purpose of the board member is to
participate to the best of his or her ability in governing the affairs
of the organization in a socially, fiscally and ethically responsible
manner.
Duties and Responsibilities:
Help position the nonprofit to be responsive to consumer/client
needs.
 Attend meetings (call when you cannot).
 Serve on at least one committee.
 Come to meetings prepared to be an active participant.
 Be involved in activities or special events related to the nonprofit.
Commitment:
 Financially support the nonprofit according to your ability.
 Follow through with “pledges”.
 Membership in the nonprofit.
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Board Skills
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Interpersonal skills (cooperation and getting along).
Constructive, critical analysis.
Team player.
Ease in public speaking.
Sales skills.
Ability to organize.
Board Knowledge
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Expertise or background in a particular discipline (fundraising,
public relations).
Previous board or leadership experience.
Understanding of nonprofit structure and sector (industry).
Board Awareness
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Community (broadly defined).
 Strengths, weaknesses, resources, diversity, “movers and
shakers”, politics of effecting change, etc.
Self-awareness of strengths.
Committed and passionate to organization’s mission.
Organization’s expectations.
Board member role/function.
The primary job of the board is…
Governance
… the exercise of power, influence and control
over a nonprofit.
Governance v. Management
POLICY (Governance):
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Usually the board’s job.
Broad in scope and
implications.
Commits the nonprofit’s
human or material
resources in a substantial
way.
Long-term impact/duration.
ADMINISTRATION
(Management):
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Usually the ED/staff’s job.
Relatively narrow,
reversible scope.
Apply the precedent rather
than establish it.
Shorter-term impact/
duration.
Making Policy
Board
Staff
Draft
Approve
Implement
Board Committees
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Conduct the business of the board and report
to the board.
Are usually chaired by a board member;
however, membership on a committee is not
necessarily restricted to board members.
Can be standing (permanent) or ad hoc
(created as needed, usually for a limited time
period).
Typical Standing Board Committees
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Planning Committee. This committee develops, implements and
evaluates organization-wide planning processes.
Marketing Committee. This committee creates and sustains an
organizational identity in the nonprofit’s relevant market.
Development or Fundraising Committee. This committee
identifies revenue sources and creates plans to acquire that
revenue.
Personnel Committee. This committee develops employee policy
and practices and conducts the performance management
process for the ED.
Executive Committee. This committee is composed of officers of
the board. This committee is empowered to make decisions in
the absence of the board. This committee often meets to develop
the agendas and priorities of the board meetings.
Typical Ad Hoc Board Committees
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Literacy Day. This committee plans and
coordinates a special event to promote
literacy in the community.
Capital Campaign. This committee plans and
implements a fund drive to raise money over
a period of time (1 to 2 years) for capital
expenses such as a new office building.
Executive Director
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Chief staff person of the nonprofit.
Reports to the board of directors; implements the
plans, priorities and direction established by board.
Participates in the development of policy, plans,
programs and direction that is ultimately determined
by the board.
Responsible for managing the operations and fiscal
activities of the nonprofit; ultimately responsible for
(but depending on size of staff may only monitor and
not actually do) supervision and appraisal of staff
(non-direct reports), program implementation and
evaluation, marketing and accounting.
Program Director
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Reports to the chief staff person (e.g., ED).
Responsible for creating, implementing and
evaluating programs that fulfill the goals and
objectives determined by the board of
directors.
Manages the program staff, which often
includes volunteers.
Personnel Committee
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Responsible for setting the overall human
resource direction, policy and procedures.
Evaluates the performance of the Executive
Director (but not his/her staff).
Studies and recommends to the board
strategies, solutions and positions on HR
issues as they emerge in the organization.