Non-Profit Boards – Who Does What?

A few months back, I was asked to speak at a Crime Stoppers USA conference and Jean Block was on the same docket; I was lucky enough to sit in on Jean’s presentation.  If you’re familiar with Seth Godin, Peter Drucker and the like…you’ll find some of Jean’s messages very familiar.  The difference…is that the message of finding a unique position, of being remarkable and defining partnerships and sponsors along lines of mutual benefit…is directed, for the most part, to non-profits.   She preaches governance, responsibility and accountablity.  There’s a “less-than-subtle” suggestion that a non-profit has a requirement to act like a business and that the majority of charities reliant on traditional funding streams are exposed without a sustainable, self-directed revenue strategy. 

What follows is taken from Jean Block’s December Newsletter and offers a snapshot of roles and responsibilities inherent in any organization…but with specific relevance to non-profits.

The Primary Role of the Board is all about governance:

• The Board is ultimately responsible for setting the organization’s strategic direction.

The Board holds annual strategic planning meetings and guards against interfering with day-to-day operations of the organization.

•  The Board is ultimately responsible for effective and efficient governance of the organization.

The Board ensures its members are trained in governance and fiduciary responsibilities.

The Board ensures that the organization is fiscally transparent and that no conflicts of interest exist.

The Board follows its own Bylaws.

•  The Board is ultimately responsible for ensuring the organization operates to serve its mission and purpose.

 The Board ensures that decisions are mission-driven and prevents mission-drift.

•  The Board supports the agency by making annual financial contribution and actively engages in fundraising.

 The Board sets the example of support for its stakeholders…giving time is not enough!

The Primary Role of the Key Executive is to implement the strategies of the Board and to carry out the day-to-day operations of the organization.

• The Key Executive is not a member of the Board, but actively advises the Board and helps the Board understand the management implications of its decisions.
• Reports regular progress about the strategic plan to the Board.
• Takes full responsibility for ensuring that adequate fiscal controls are in place.
• Ensures that appropriate operational policies and procedures are in place and followed.
• Ensures that appropriate human resource policies are in place and followed and that appropriate staff are in place to carry out the mission and purpose.

Here are 10 things every organization should have in place to help the Board govern effectively:

1. Director and Officer liability insurance.
2. New Board member orientation.
3. Board member Job Description.
4. Conflict of Interest statement.
5. Annual Commitment Letter.
6. Review and discussion of the new IRS Form 990 disclosures.
7. Membership in Board Source (www.boardsource.org).
8. Current bylaws.
9. Strategic plan with annual action plans for all committees.
10. Open and effective communication between Board and Key Executive.

During the CSUSA conference, Jean handed out some great buttons…and I’m happy to see they’re available on the site.

Jean Block’s website can be found HERE and the extensive list of organizations benefitting from Jean’s involvement is found HERE.  To join her mailing list and view archived materials, click HERE.

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