Board Chairs and Board Leaders Mary Hiland, nonprofit leadership expert, interviews Mike Burns to discuss national research on board chairs and board leadership.
Inspired Nonprofit Leadership Mary Hiland, nonprofit leadership expert, interviews Mike Burns to explore nonprofit board stages of development. Mike offers that recognition of board stages helps establish achievable expectations.
"Effectively Raising Capital: The Board Chair & Executive Director Relationship" Mike Burns and Kevin McQueen, partners at BWB Solutions, and special guest Carla Weil, the Chief Strategy Officer from Capital for Change, the largest full-service CDFI in Connecticut, share their experiences effectively identifying funding sources and raising capital to strengthen an organization and provide more impact in low-income communities. Carla Mannings of Partners for the Common Good and CapNexus moderated the panel.
Share power to strengthen your board. Are your board leaders struggling to balance power among themselves? Are they not understanding their roles outside of the boardroom? If you answered yes to any of these, listen to Ep. 58 of our podcast as we host Mike Burns and Judy Freiwirth. Mike and Judy share their expertise, which is based on their Nonprofit Alliance study Voices of Board Chairs.
Making a Lasting Difference I've been struggling to finish "Making a Lasting Difference" by Graeme Reekie since first I received this book about 6 months ago from Wren and Greyhound. The press is British but I thought the subject would be universal for nonprofits.
Alas and sadly, this is a slow, tedious read filled with platitudes and almost helpful considerations nonprofit managers might want to consider when thinking about how to financially sustain their organizations.
I have generally posited that a nonprofit has 4 "pillars" that comprise its DNA: program, management and operations, governance and sustainability. M. Graeme offers five: involvement ((having community support); Income generation; Innovation ("how to nourish and encourage incremental innovation); Improvement (systems and structures); and impact measurement. So he and I don't operate from the same lens but his is certainly one perspective.
Making a Lasting Difference is constructed in four parts, 20 chapters and 211 pages. The possibly most innovative content is in Part 2, Chapter 2 where paradoxes, principles and practices of sustainability are presented. The paradoxes:
a. Change - only by changing can organizations be sustainability, sustainability does not mean sustained, and, the lesson is that an org. must learn, adapt and evolve purposefully. Here the author poses that an org has to have its act together to achieve sustainability
b. Octopus - organizations need to reach out in new directions to grow but growing in too many directions pulls them out of shape; diversified income does not mean reduced risk; and, an org must focus on core organisational purpose and structure. Here the author says that mission drift will not make you sustainable.
c. Yes/No the things that an organisation needs to survive can also kill it. Saying yes to everything is fatal; sustainability is about more than just money. Capacity and quality matter. Understand when, how and what to say no to. I would offer this is the "stay in your lane" paradox.
d. Efficiency - Efficiency preserves resources but can impair development. Organisations cannot evolve, adapt or respond without spare capacity. And orgs should balance strategy and scrutiny. They should invest in capacity building.
To all of this I just want to say: uh, ok and thanks for the amazing insight. No, not really! I would not invest in this book. You can better spend your time reading the Federal Register looking for grant opportunities (good luck given the current environment) or going through the Foundation Center directory or building an endowment from rich people who loved you (yes, this really is the key to sustainability). Making a lasting difference may be a good idea when thinking about long-term impact from what your nonprofit does - reading this book will not.
The eyes of Texas have been opened and the cost for the board president of a number of child welfare agencies has been great. Steal this president did to first result in a variety of benefits in the form of travel and appliances but later result in some jail time, a lot of debt (presumably), removal and banning from seats on child welfare boards, and finally, dissolution of the "her own" agency.
Now the bigger question, how on earth did the board president manage to pilfer so much money (approximately $100K) without notice? One apparent success was the linkage between her organization and the funder where, if I understand correctly, she also served as board president. But it also appears as though her agency, the initial before her, beneficiary of funds, was supposed to distribute these very funds and there is likely where the unseen pass came. Whatever, almost a perfect heist until someone tattled. Yes, her undoing came at the hands of someone who figured out what was going on. Could it have been a board member who finally took responsibility? Or was it another organization who saw her money go missing?
Really, this could not have happened with proper accounting policies and procedures in place. And since when does cash flow through a board president without at least one other signature - and although that might have been in place, it's clear that if so, the second signatory was certainly not benefiting or at least there's no evidence to date.
All's well that ends well but really, the case needs to be documented and held-up as how good governance failed and what could have been in-place to prevent all. Thank you Texas Rangers - my childhood heroes are continuing to fulfill their duty.
A newly released study indicates that a third of the world doesn't "lacks confidence" in NGO's.
"In the United States, 60 percent of respondents said they trust charities, and 27 percent said they don’t. Those results are similar to a Chroniclepoll in 2015, which found that 62 percent of Americans have a "great deal" or "fair amount" of confidence in charitable organizations."
Uh, nonprofit boards - this is YOUR domain. If your community doesn't trust you, YOU should be asking why. Actually, you should first be asking if this is actually true in your community. And, you should be asking the question about who IS your community and what is your relationship. This is also the time to remind you of the value of community engagement governance - an important step forward to ensuring that those you serve do indeed trust you.
If you take a serious look around at what nonprofits have bombed-out, I suggest you may find that a root cause is the disconnect between the board and the community - particularly those you serve but also the donors/funders. This is not a situation that has to be your nonprofit's reality.
The chatter about how difficult it is to recruit "good" board members is pretty constant. The range of "needs" appears wide as boards try fundamentally to ensure that the by-law specified minimum number of members is in-place and subsequently, that the minimum number needed to reach a meeting quorum shows. And of course, there's the task of board members getting outside their comfort zone and own network to ensure that the voices of those served is seated. And finally, once the numbers are satisfied, there's the task of ensuring full participation, however that is defined.
A Governing Magazine article on the goal of finding "good cops" stopped me in my tracks in considering just how board recruitment and enhanced selection processes could better enhance bringing-in members who could best do the job of governing. Now I do want to acknowledge that the job of a board member is way different than that of a police officer. That said, there are some surprising traits required. As the article noted,
“Most of our screening tools weed out," says Beth Sanders, an associate professor at Bowling Green University who has spent 20 years studying police recruitment and 10 years looking at what it takes to be a so-called good cop. "We don’t use anything that weeds in."
Instead, rather than focusing on "reading comprehension, writing and arithmetic -- cognitive skills" the focus will be on assessing "interpersonal skills and decision-making". In Baltimore, based on months of surveys and interviews about the top qualities cops should have the conclusion: Interpersonal skills, honesty and commitment to service.
Uh, and are not these the same qualities we should consider for board membership: decision-making, interpersonal skills, honesty and commitment to service/mission?
Nonprofit board governance committees, please take note.
The following Worth Magazine article provides insights that nonprofit board governance committees might consider using as they work-on and implement their board recruitment plan. The article considers what are less-than-stellar reasons for joining a board as well as what are reasonable and possibly rewarding expectations.
How to Serve on a Nonprofit Board
Serving on a board is about more than just making business connections—it’s real work. Here’s how to ensure your time on a board is productive and fulfilling.
Adrienne Arsht serves as a vice chair of New York City's Lincoln Center. Photo by Shutterstock.com
As a young lawyer at Phoenix-based law firm Brown & Bain in the early 1980s, Tim Delaney devised what he believed was a brilliant strategy for generating more revenue: He would join the local chamber of commerce on behalf of the firm to gain new clients. Brown & Bain backed his seemingly altruistic initiative, though the firm’s main partner, Randy Bain, offered a word of warning. “When you get involved in the community,” Bain said as he gave Delaney the check for membership dues, “you need to make sure you’re doing it because you want to make a difference, not because you’re just trying to bring in new business.” Livid, Delaney convinced himself that he was indeed trying to be a community leader.
“It was not fulfilling,” he recalls. Finding the chamber’s mission tedious and that he was one of many who had joined only for business development, his interest waned. He stopped attending meetings after six months and let the membership lapse.
Nonprofits are where individuals come together to solve a community problem, so every board member needs to have alignment with the organization’s mission and expectations.
Delaney’s idea wasn’t inherently inappropriate—serving on a nonprofit board can be a great way to develop leadership skills, enhance your community and business network and open the doors to new social opportunities. But his approach was all wrong.
Today, following a law career that includes a stint as chief deputy attorney general of Arizona as well as considerable nonprofit work, Delaney is CEO of the National Council of Nonprofits, a Washington, D.C., advocacy group. “Nonprofits are where individuals come together to solve a community problem,” he says, “so every board member needs to have alignment with the organization’s mission and expectations.”
Heading into nonprofit board service can be incredibly rewarding personally and professionally. But having the wrong mindset can at best be a disappointment; at worst, it’s a detriment to the organization you’re trying to help. Here are a few things to consider when serving on a nonprofit board.
FIND A PURPOSE
As executive vice chair of the Atlantic Council, Adrienne Arsht most recently gave a $25 million gift to launch the Adrienne Arsht–Rockefeller Foundation Resilience Center focused on translating the concept of resilience into actions and impact. Photo courtesy of the Atlantic Council
“I don’t think anything, with rare exceptions, can be accomplished without passion behind it,” says philanthropist Adrienne Arsht, whose extensive board service includes roles as vice chair of Lincoln Center in New York and executive vice chair of the Atlantic Council in Washington, D.C. “You should want to go on a board because that’s where your passion leads.”
In other words, love the cause. At the end of the day, nonprofit board service is volunteer work. Like a corporate board, a nonprofit board guides and advises the leadership of an organization. And as with most philanthropy, if you don’t feel a personal connection to the mission of an organization, sitting on its board probably won’t feel very rewarding—it may even seem onerous.
Before joining a board, Delaney recommends asking about the expectations of its members. The bylaws of most nonprofit boards set attendance requirements for its meetings and events, as well as for committee and fundraising participation. “If you see up front that it will be a bad alignment, it’s best for both parties for you to say, ‘Thanks but no thanks,’” he says.
TAKE THE TIME TO LEARN
Ann Ramsay-Jenkins’ professional experience includes working in the Executive Office of the President on drug abuse prevention—a knowledge set that has proven invaluable to the boards she has served on, such as the College Success Foundation and University of Washington Medicine. Photo courtesy of the College Success Foundation
Whether you were invited to join or campaigned for a board seat, plan on staying for the long haul. “The organization needs to get to know you better, and you need to get to know it,” says Seattle philanthropist Ann Ramsay-Jenkins. “It’s a time when you can be a resource if the organization knows how to use you well. But it’s a mutual education.”
A thoughtful understanding of the committees and their work is important for someone to be a good fit.
In addition to serving on multiple boards throughout her career—from University of Washington Medicine and the 5th Avenue Theatre in Seattle to the Ogunquit Playhouse and the Ogunquit Museum of American Art in her native Maine—Ramsay-Jenkins has interviewed board candidates as chair of the College Success Foundation, an educational nonprofit she cofounded in 2000. “Depending on the organization, there are different committees of the board. A thoughtful understanding of the committees and their work is important for someone to be a good fit,” she says.
Board members should also become familiar with the organization’s bylaws and uphold ethical standards. Organizations such as the National Council of Nonprofits and BoardSource provide tools and materials to develop your knowledge of being a good steward. Ultimately, working in the team atmosphere of a board should sharpen your skills in diplomacy, decision-making and conflict resolution.
But if you don’t have the time to devote to the nonprofit, or your circumstances change, don’t be ashamed to step down. “People are afraid of doing that for fear they will be looked on negatively,” Delaney says, “but most boards celebrate people who have that sort of personal courage and will quickly ask them to come back when their schedule permits.”
MONEY ISN’T EVERYTHING
A nonprofit board seat, particularly at cultural organizations, generally comes with a financial commitment. A board member may be expected to bring in a specific amount of money, either by writing a check or helping to raise those funds through business associates or corporate support. But a large checkbook works best in conjunction with big-picture wisdom.
“Instead of calling up an organization and saying, ‘I’m wealthy and I can make a contribution,’ individuals need to do their homework to determine where they’re going to be the most comfortable if and when they decide to become involved,” says John Graham, CEO of the American Society of Association Executives. “If someone has an idea, and they have the money to say, ‘Let’s try an experiment and see what kind of impact we can have,’ there’s nothing wrong with it. That’s someone who’s trying to work within the systems of the organization.”
It provides an individual with so much opportunity to be bigger than oneself.
Adrienne Arsht took that strategic approach when she joined the Atlantic Council in 2014. She felt there was a need for a Latin America-focused think tank and proposed making a $5 million gift to establish it. “I was introduced to [Atlantic Council president] Fred Kempe, and said, ‘This is what I really care about,’” she remembers. “He talked to his board and said, ‘Yes, we want to do that.’” Five years later, the center is one of the leading authorities on issues in the Americas and works regularly with the U.S. State Department on matters in the region. And Arsht’s commitment to the Atlantic Council has only deepened, leading to the creation of the Adrienne Arsht–Rockefeller Foundation Resilience Center—another think tank she backed with $30 million—as well as her executive vice chair role in the organization.
That strengthening of ties to the community and an organization is what people in the nonprofit sector say is most addictive about board service. “For anyone who hasn’t done this before, it’s a door to a new world of people and friends to meet,” Ramsay-Jenkins says. “It provides an individual with so much opportunity to be bigger than oneself. And it’s fun.”
Calling all social butterflies! We all know your place in young New York Society is defined by where you live, what parties you’re seen at, and which charities you support. So if you want to step up your social standing, it’s time to invest in sitting on a junior board or two.
In the company of young professionals and socialites alike, you can fill your social calendar, increase your philanthropic footprint, and enjoy the elite society that New York City fosters like no other. Junior boards were created to groom young patrons into full-fledged board members one day, when your social connections and financial status allows. Start on a junior board and you’ll be rubbing elbows with the Lauren Santo Domingos of society in no time!
It’s time to leverage your social connections and bust out your wallets for these elite foundations and institutions. But remember, joining a junior board isn't all about glamorous parties and writing checks. Commitment is key, so you want to genuinely have a passion for what you are funding, especially when you’re up at 3 A.M. sending event invitations to your entire inbox.
Hm....The cynic in me says: "really"? But I asked my cynic to step-back a moment to ask my rational, marketing-focused side the question: is this what it takes to excite and interest the 25-35 year-olds in nonprofit board service? And, apparently, based on the ad - the answer is "yes!" But I must ponder further to ask: what makes one junior board "better" than another as is suggested by the title of the item "Who Has the Best Junior Boards in New York City?". Apparently there are "Best" or "Chisest" (um, I guess this is a word) in this category. My only clue focuses on the Junior League which is all women and folks who want to socialize while rolling-up their sleeves putting-on activities which actually enable each other to be engaging socially.
Seems like a lot of work to support BUT if the end result is folks who are skilled and ready to serve as a full nonprofit board member - EXCELLENT!
In case you missed it, my recent column in the NonprofitPro magazine was just released. You can see the full article here.
The article offers my thinking about if, when and how to recognize the individuals who sit on your board. One spoiler: time is not THE indicator of a member's performance.
In the meantime though, my associate Jane Garthson sent me some additional thoughts on ways to recognize a board member, again, not for just showing up although I acknowledge many are grateful for just this commitment.
- ensure board members are included in general volunteer awards for length of service and such. I’ve found some Volunteer Managers see the board members as so separate they get forgotten
- name an award, meeting room, whatever, after a founding or long term board member as they depart the board
- set up a scholarship fund in their name, or rename an existing fund, e.g., so service fees can be waived when the fees would be a financial hardship
- name an education program after a board member who was instrumental in developing education on that topic
- put bricks or flat stones with one name on each into a path or walkway or wall
- plant a tree for them in a special place and mark it with a permanent plaque
- ask past directors onto a special advisory council that is asked maybe once a year to give feedback to the board on a potential major change in mission or structure (and make sure the council members are named and applauded at the AGM, listed in the annual report, etc.)
Last year I had the opportunity to learn about a board that was in disarray. The board had been violating its bylaws and doing a disservice to its community constituents. But the constituents stood up and said "no more". Be inspired and follow this link to learn the complete story as told by one of the participants.
I should note that this is a nonprofit story not unlike thousands where once the founding group goes awry, there will be those who will ensure that services rise again from the ashes. There is actually research that highlights this cycle where a group sees a problem, organizes, begins to deliver services and becomes the very institution that it fought against originally followed by a new group that must come in and start the process anew. Congrats to these folks. Be inspired. Governance is not of the few.
Marcus May has helped write some chapters on how to personally benefit from a nonprofit. Mr. May is now facing legal charges from the Feds (there was Federal money involved) but his playbook should serve to at least provide some wisdom to funders and state/federal administrators when they suspect something isn't right. The biggest problem, no one could look to the boards of Mr. May's Charter Schools to be the accountable body. Mr. May picked the boards to ensure they wouldn't get in the way. This of course serves as a good reminder that good boards do indeed "get in the way" to ensure that all is "right" with the nonprofit they oversee. Here's some of the Law360 article that provides details on this case, particularly about the board.
Convicted Charter School Operator Hit With Racketeering Suit
Law360 (June 10, 2019, 8:19 PM EDT) -- A former charter school operator convicted of defrauding Florida schools out of millions of dollars is being sued for racketeering by schools that he and his business associates ripped off by using shell companies to sell them school supplies at grossly inflated prices.
Three public, nonprofit charter school organizations in Florida that receive funding from local, state and federal sources filed a federal lawsuit Friday against Marcus May, his business associates and their shell companies, many of which appear to be named after fictional characters and companies from Ayn Rand’s novel, Atlas Shrugged.
The lawsuit alleges violation of the federal Racketeer Influenced and Corrupt Organizations Act and Florida’s Civil Remedies for Criminal Practices Act.
Galt Solutions LLC, Rearden Capital LLC and D’Anconia Development are among more than a dozen shell companies set up by May, his business associate and longtime friend Steven Kunkemoeller, and their wives, the complaint alleges. Due to the lost revenue, the schools say they were often forced to operate with few supplies or classroom materials.
“Teachers were forced to teach without textbooks,” the schools allege.
Through the shell companies, the Mays and the Kunkemoellers unjustly awarded themselves contracts that resulted in the charter schools' overpaying, sometimes as much as 300 percent, for equipment and supplies, according to the complaint.
“The ill-gotten proceeds were then paid to Kunkemoeller with public funds from the schools’ bank accounts. Upon being paid, Kunkemoeller shared approximately half of the profits with May as kickbacks,” the complaint alleges.
Kunkemoeller’s wife, Susan, and May’s ex-wife, Mary, helped carry out the schemes as well, according to the complaint. The Mays and the Kunkemoellers are accused of carrying out fraudulent invoicing, money laundering, and a real estate acquisition scheme.
In addition to purchasing properties in Ohio and Florida with the proceeds, the complaint also alleges that Mary and Marcus May divorced to protect the assets they acquired as a result of the schemes.
“In an effort to conceal and impede the ability of victims of the May Enterprise Scheme to recover funds from which they were defrauded, Mary May and May agreed to a sham divorce, whereupon Mary May ended up with millions of dollars’ worth of ill-gotten cash and other property,” the complaint alleges.
The proceeds of the fraud should be located, assessed and returned to the schools, the complaint says.
The schemes date to around 2007, the complaint says, when May formed his charter school management company, Newpoint Education Partners, and started managing schools across Florida, helping them develop their charter applications and seek approval from school boards.
May took the lead in forming governing boards to oversee each school’s operations and often filled seats on the board with his friends or colleagues, according to the complaint.
“The financial oversight each board exercised was generally to review financial statements prepared by bookkeepers that were handpicked by May. With May’s intentional limited oversight from these charter school governing boards, defendants were generally free to undertake their fraudulent financial transactions without much scrutiny,” the complaint says.
Newpoint Education Partners managed 14 charter schools across Florida, providing services such as negotiating leases for the school buildings, selecting bookkeepers, opening bank accounts for the schools, and purchasing equipment, education materials, furniture, and supplies, the complaint alleges.
May’s company took control of charter schools’ finances and then abused the fiduciary relationship, according to the suit.
As you might know by now (if you regularly peruse this blog) one of my "issues" with NANOE, this nonprofit focused on redesigning nonprofit boards, is the organization's insistence that paying board members for meeting attendance has issues. At minimum I wonder aloud, that volunteer board members should certainly have other incentives for meeting attendance than pay (noting this is not about reimbursement for reasonable expenses).
But the National Rifle Association, this is a different story. As a Washington Post story has highlighted, the NRA contracts with a good number of the board members. Specifically, "18 members of the NRA’s 76-member board, who are not paid as directors, collected money from the group during the past three years, according to tax filings, state charitable reports and NRA correspondence reviewed by The Washington Post." Again, I will not discuss further what I believe to be a ridiculously-sized board (although, to each their own, if you can manage it), but even 18 members who have received payments for services or products strikes me at minimum a questionable practice - one maybe should ask why the remaining 58 board members aren't compensated for their services or products.
Ah, but I digress. The real question: when and is it ok for a nonprofit to buy services from board members and if yes, how much can these purchases be construed as "buying" member "votes" and is there a limit that affects this ok-to-do activity.
Back to the Post, services and/or products are purchased "from about one-quarter of board members, the extent of which has not previously been reported, deepen questions about the rigor of the board’s oversight as it steered the country’s largest and most powerful gun rights group, according to tax experts and some longtime members. The NRA does not require board members to donate or raise funds for the group, as many nonprofit organizations do. They do not have term limits. State and federal laws DO allow members of nonprofit boards to do business with their organizations under certain guidelines. The Internal Revenue Service can impose penalties if top officials and their families receive economic benefits that exceed fair market value. BUT, tax experts said the numerous payments to certain NRA directors create potential conflicts of interest that could cloud the board’s independent monitoring of the organization’s finances.
So, can nonprofits purchase services and products from board members: sure. Is it always a good idea? Not necessarily although the correct answer: it depends.
The NRA defends its practice stating that its members have special skills not otherwise available - that's why they are at the board table. Maybe?
In terms of fulfilling one's fiduciary duty on a nonprofit board, risk reduction and prevention comes to mind. But what about risk reduction and prevention in terms of even becoming a nonprofit board member. Here's what an article in the Tallahassee Democrat had to say on this subject.
Ask questions first about board service obligations |Notes on Nonprofits
Bob Harris, Notes on Nonprofits Published 3:38 p.m. ET June 8, 2019
After we heard Bob Harris speak at Leadership Tallahassee Building Better Boards program we immediately reached out and ask if he could share with our readers information about protecting the Boards of Directors.
“What could go wrong? I’m just a volunteer on a board of directors.” It’s better to ask about risks and protections before accepting a nomination to serve. Directors are trustees of the corporation.They are responsible for governance and the well-being of the organization.
Although organizations are characterized as “nonprofit” and directors are “volunteers,” liabilities can arise. Consider Murphy’s Law: “If anything can go wrong, it will.” Liability could result from discrimination, copyright violation, harassment, embezzlement or antitrust violations, for instance.
Every organization faces risks. Nonprofit organizations may have some added risks, for example public record requests, election procedures, committee authority and member demands
Consider these five methods to afford board protection. Every organization is unique. Read the governing documents and understand applicable laws. Be sure to rely on legal, accounting and insurance counsel.
Board Orientation (ABSOLUTELY) – One of the best ways to avoid risk is to discuss the potential. Plan an annual orientation to inform directors of liabilities and how to avoid them. Risk management includes awareness, avoidance, mitigation, transference and/or insurance.
For example, a nonprofit that offers liquor at a meeting may want to have policies requiring the purchase of host liquor liability insurance, among other safeguards. Or the event could forego liquor entirely. Another option is to hire a caterer trained and insured to serve alcohol.
TIP: Record in the minutes that the organization provided an orientation, including risk avoidance. Distribute or provide access to the governing documents at an annual orientation.
D & O Insurance – Directors and Officers’ liability insurance is used to protect board members and officers from personal losses if they or the organization is sued. The coverage pays legal costs for the defense of the board and may pay associated fines.
TIP: As a best practice circulate a copy of the policy (or the cover page) at the board meeting when it is renewed. Directors should be aware that the policy exists and the amount of coverage.
Indemnification – Some bylaws, not all, include an indemnification clause. The concept intends to cover the legal expenses of officers and directors who may need to hire an attorney to protect themselves in organizational related work. For instance, a member sues the organization for misuse of funds and the treasurer decides it is prudent to hire a personal attorney.
TIP: I’ve read indemnification clauses that are narrowly defined and others so broadly stated that even the sons and daughters of board members have access to reimbursement. An organization offering indemnification may want to consider the amount of savings reserve that would be necessary if the clause is used.
Corporate Veil – A corporate veil is a legal concept that separates the actions of the board from the liability of the corporation. The association is incorporated in hopes that a court would not pierce the corporate veil to go after directors’ personal assets.
TIP: The majority of states require an annual report by the organization. Failure to submit the report can result in dissolution of the corporation.
Volunteer Immunity – Many states and the federal government have adopted laws that protect members of a nonprofit organization. Volunteer immunity will not apply to actions outside of governance, for example, hosting a reception.
TIP: Realizing volunteer immunity relates to governance and the organization’s governing documents, I like to be certain the minutes reflect that an annual orientation was conducted and directors have access to a leadership manual or portal where governing documents are stored.
The board is responsible for governing, strategic direction, serving the membership and protecting assets. Directors should be advised of any protections in place. It is worth repeating, be sure to rely on legal, insurance and accounting counsel regarding protections, risks and governance.
Bob Harris, CAE, provides free governance tips and templates at www.nonprofitcenter.com. You can email him at [email protected]. Notes on Nonprofits is co-written and edited by Alyce Lee Stansbury, CFRE and Kelly Otte, MPA. Write to us and tell us who you think should do a guest column at [email protected]
