How To Build A Great Board

Unless your nonprofit's board has no term limits, chances are you will see many board members come and go. If there is one thing that is invaluable for boards, it's consistency, and it's up to the governance committee to take the lead in identifying the skills the board needs to continue to effectively do its job.

There are thankfully many resources available to help ensure that new members have the same skills and expertise as their predecessors. In “Nonprofit Management 101,” Vernetta Walker and Emily Heard of BoardSource list six of these resources:

• Personal networks of business and community leaders;
• Media articles;
• Volunteers and non-board member committee members;
• Participants in leadership programs;
• Current MBA students; or,
• Online sites that specialize in board matching or that list board opportunities.

Walker and Heard wrote that, once you have a group of candidates to choose from, it's time to make sure they are truly right for the job. You can do this by making sure applicants are:

• Passionate about and committed to supporting the mission of the organization;
• Clear about their potential role and the time commitment required -- share the board job description and board member agreement and answer questions about the work of the board; and,
• Able to fulfill the expectations you have of them.

12 Reasons For A Board Retreat

Board members don't usually react with excitement over the idea of a retreat; they tend to retreat from those plans as quick as they can. While they may not be thrilled about the idea of a board retreat, these trips often have tangible benefits and are worth pursuing.

Dennis Miller, founder of Miller & Associates in Denville, N.J., an expert on nonprofit board governance, leadership development and strategic planning, and frequent contributor to The NonProfit Times,  maintained that retreats are an excellent opportunity to envision the future, establish new goals and develop desired standards of performance.

This is all in practice, of course, and preparation is key to ensuring retreats have their desired effect. Specifically, that means managers should:

• Solicit input from as many key internal and external stakeholders as possible.
• In conjunction with the CEO, board chair and/or retreat committee, develop an agenda with two to three specific goals.
• Consider requiring "homework" to be completed before the retreat.
• Set approximate timelines for each topic to be covered and stick with them as often as possible.
• Involve as many members from the senior executive team as practical.
• Make sure everyone is called on to participate.
• Select a comfortable place, preferably away from the site where the daily workings of the organization take place.
• Allow ample breaks between key topics.
• Build consensus on all key issues discussed and create key action steps.
• Consider engaging an experienced facilitator or consultant.
• Provide a retreat summary for all participants on key issues discussed, what consensus was developed and required action steps.
• Perform a retreat customer satisfaction survey prior to leaving the room.

Recognizing Your Board Members

Nonprofits often honor their volunteers and for good reason. There is good reason for this -- after all, they play an important role in the successes of an organization. Yet too often, the hard work of board members is left unrecognized.

The fact of the matter is that board members are volunteers as well and, as such, deserve to have their accomplishments honored. In his book “The Complete Idiot’s Guide to Recruiting and Managing Volunteers,” John L. Lipp listed 10 unique ways you can recognize the hard work your board members do for your organization:

• Write a short feature story about individual board members in your eNewsletters.
• Provide board members with nametags they can wear to special events that indicate their role on the board.
• At board meetings, take the time to recognize individual members who have a birthday that month or are celebrating other personal milestones.
• At special events, take the time to publicly introduce any board members who are in attendance.
• Consider giving out an annual Outstanding Board Member award.
• Nominate outstanding board members for leadership awards.
• Start each board meeting by going around the room and acknowledging one special thing that each member has done that month to support your cause.
• Put framed pictures of your board members in the lobby of your organization or in the board room.
• Publish brief bios of your board members on the “About Us” page of your web site.
• Serve snacks at board meetings.

Armstrong Steps Down From Livestrong Board

Cross-Posted From The NonProfit Times Website

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Less than a month after stepping down as chairman, Lance Armstrong has resigned entirely from the board of the foundation that he founded 15 years ago.

The former cycling champion resigned as chairman of the board on Oct. 17, replaced by founding chairman Jeff Garvey, and yesterday Garvey announced that Armstrong voluntarily resigned from the Lance Armstrong Foundations’ board “to spare the organization any negative effects as a result of controversy surrounding his cycling career.” The decision to step down was made Nov. 4 by Armstrong but announced yesterday, according to a spokesman.

In a 200-word statement, Garvey thanked Armstrong for “changing the way the world views people affected by cancer,” as well as for his devotion to serving survivors and commitment to the cause.

Armstrong, 41, was diagnosed with testicular cancer in 1996, beating the disease and starting the foundation in 1998 before going on to win seven consecutive Tour de France titles between 1999 and 2005. The United States Anti-Doping Agency (USADA) released a report last month that included damning testimony from former teammates that many within U.S. cycling, including Armstrong, engaged in doping. Armstrong has continually denied the allegations but was stripped of his seven titles and several sponsors, including Nike, severed ties with him, though not with the charity.

The Austin, Texas-based foundation is more commonly known as Livestrong after a branding effort several years ago. The charity skyrocketed to fame after the wild success of yellow, Livestrong bracelets in 2004, selling more than 80 million. Over the years, Armstrong has donated nearly $7 million to the organization, Garvey said, and the foundation has raised nearly $500 million.

Fundraising hasn’t been hurt yet by the rash of media reports since the USADA released its evidence in August. Livestrong has reported that donations are up about 3 percent since Aug. 23, and the number of donations are up more than 7 percent, compared to 2011. The number of donations are up about 15 percent since Armstrong resigned as chairman last month while the total raised is up about 2 percent compared to the same time last year.

Nonprofit Board Fundraising Tips

Nonprofit boards have the capability to be a powerful tool for fundraising. There's only one problem: It's not exactly easy getting members on board for it.

Board members already have a lot on their plate, so it can be a challenge to get them to raise money for the organization. At the Association of Fundraising Professionals (AFP) 49th International Conference on Fundraising, fundraising consultant Julia Ingraham Walker gave 10 steps for making the board an effective partner on the fundraising team. They are:

• Build board buy-in for taking a leadership role in fundraising. Educate board members about long-term needs and goals.
• Provide training in fundraising for all board members. Plan a retreat or bring in a consultant.
• Recruit new board members strategically. Look for fundraising experience or the capacity to give more.
• Educate board members about fundraising needs and goals. Involve board members in strategic planning.
• Set the pace with board giving. Start by setting a 100 percent participation goal.
• Define roles for board and staff.
• Build board partnerships in the annual fund. Participate actively in annual fund solicitation.
• Build board partnerships in major gifts. Help identify and cultivate major gift prospects.
• Build board leadership in the campaign. Take part in the planning phase.
• Raise sights with the board. Begin with gifts from board members themselves, use challenges and matches effectively and talk about and plan for larger gifts.

7 Qualities Of Effective Board Members

Recruiting for a nonprofit board can be a challenging task. Not only must you make sure that it is comprised of individuals with diverse backgrounds and skill sets, but members must also have the appropriate qualities.

Not everyone can be a board member. Before you set out to recruit, it is imperative that you know the qualities individuals need to possess to be successful. Having just one or two won't do; candidates must have all of them if they are to be a great asset to the board. Howard Berman, in his book "Making a Difference," listed the seven qualities you need to look for during the recruiting process:

• Integrity: Demonstrating a zero tolerance for unethical behavior, both for themselves and their colleagues.
• Independence: Having no unique business, financial or personal relationships -- or hoped-for-relationships -- that create even the perception of a conflict of interest.
• Mature Confidence: Speaking out and actively participating in board and committee deliberations.
• Corporate Manners: Recognizing the difference between productively participating in discussions and counterproductively dominating deliberations through the volume or length of comments. Must be able to work with other members to create workable compromises.
• A Sense of Context: Making relevant, informed comments focused on the specific aspect of the issue being considered. Must be able to stay on topic.
• Courage: Willingness to do the right thing/make the right decision even if it is difficult or unpopular (i.e., no fence sitting).
• Commitment: Understanding that being an effective board member requires the time, the heart, and the standards to make the enterprise successful.

Finding A New Board Chair

While every one on a nonprofit board has a lot of responsibilities, the chair remains one of the most integral members. From delegating and encouraging colleagues to giving the board an identity, the chairman of the board exerts a great deal of influence.

That's why it can be so important to find the right individual to take this role.

Unfortunately, finding the ideal candidate is easier said than done. In order to begin the process of choosing a new board chair, Dennis C. Miller, a frequent contributor to The NonProfit Times and head of Dennis C. Miller Associates in Morristown, N.J., said there are 10 specific actions that can be taken to identify and appoint a board chair:

• Immediately begin to assess the leadership talent of current board members.
• Ask your current board chair to begin as soon as possible to identify potential candidates.
• Institute ongoing board training for all board members.
• Offer the chair-elect a professional board coach/mentor.
• Ensure the board’s work is done efficiently.
• Find ways to recognize and reward board members for the job they do.
• Provide opportunities for all board members to participate in a wide array of committees, task forces and advisory boards.
• Highlight the organization's continuous strides for excellence.
• Recognize former board chairs for their contributions.
• Recognize and address the reasons why appointing a board chair is difficult.

8 Things That Make Nonprofits Vulnerable To Fraud

Nonprofit boards and executives never want to believe that fraud can happen to their organization. It's one of those things that happen to the unprepared, they think, surely it can never happen to us.

Unfortunately, that is far from the truth. Fraud can happen to all nonprofits because, according Marci Thomas, CPA, MHA and Kim Strom-Gottfried, Ph.D. In their book "The Best of Boards," the two authors wrote that nonprofits are especially vulnerable to financial crimes because they rely on the trust of their donors, funders, and employees. If that trust is broken, organizations will have a hard time finding success.

Thomas and Strom-Gottfried wrote that organizations must have strong internal controls to make sure these factors don’t lead to fraud:

• Control by a chief executive; employees believe that there is no one to whom they can report unusual actions or requests;
• Existence of transactions, such as contributions, which are very easy to steal;
• Environment of trust, especially in financial personnel;
• Focus on the mission to the exclusion of administrative systems of controls and risk management;
• Failure to devote sufficient resources to financial management;
• Failure to include people with financial oversight expertise on the board;
• Failure of the board to challenge the chief executive for fear of losing the person; and,
• Fear that the cost of implementing controls will outweigh the benefit and spending money that, in their view, would be better spent on programs.