Nonprofit Board Answer Book

BoardSource is the premier resource for practical information, tools, best practices, training, and leadership development for board mem- bers of nonprofit organizations worldwide. Through its highly acclaimed programs and services, BoardSource enables organizations to fulfill their missions by helping build strong and effective nonprofit boards.

• About BoardSource v Introduction: The World of Nonprofits xvPart One: Basic Board Functions1 What are the basic responsibilities of a nonprofi t board? 32 What are the legal duties of a board member? 63 What is the board’s role and involvement in mission, vision, and values? 94 What is the board’s role in fi nancial management? 125 What is the board’s role in strategic planning? 166 How does strategic thinking contribute to board and organizational effectiveness? 207 What is the board’s role in fundraising? 238 What is the board’s role in organizational evaluation? 279 How does the board avoid the extremes of “rubber stamping” and micromanaging? 3210 Why is connecting and communicating with constituencies an important task for the board? 3611 How does a board function as a team? 4012 What are the attributes of a high-performing board? 43Part Two: Board Structure13 What is the best size for our board? 4914 How should we structure our board? 5215 What types of board committees should we have? 5516 How can our committees be most effective? 5817 Does our board need an executive committee? 6218 Should our board have advisory councils? 6519 What is the role of the board chair? 6920 What board offi cers should we have? 7321 How should we select our board offi cers? 7622 What kind of board does an all-volunteer organization have? 79Part Three: Board Member Selection and Development23 How can we recruit active, involved board members? 8524 How can we use a board matrix to identify recruitment needs? 8925 What is the chief executive’s role in board recruitment? 9326 How can a membership organization build an effective board? 9527 How can our board become more diverse and inclusive? 9828 What should we tell our prospective board members? 10129 What should we include in our board orientation? 10630 Should members of the same family serve on a board? 10931 Should constituents serve on the board? 11232 What should we do about uninvolved board members? 11433 Should we have term limits for board members? 11934 How can we engage former board members and chief executives? 12235 Should board members be compensated? 12636 How can our board assess and improve its own performance? 13037 Should individual board members be evaluated, and, if so, how? 136Part Four: Board and Committee Meetings38 Is a board legally required to hold open meetings? 14139 How often and where should we meet? 14440 How can we improve our meetings? 14741 How can we encourage debate while promoting civility in the boardroom? 15442 What is the purpose of a board retreat? 15843 Who should attend board meetings, and what are their roles? 16044 How should staff members participate in board and committee meetings? 16345 What are the different ways boards make decisions? 16746 How should board minutes be written, approved, and kept? 17047 How can e-governance improve board and committee work? 174Part Five: The Board’s Role as a Fiduciary48 How does a board help ensure the organization’s long-term viability? 18149 What does the board need to know about reserves and investments? 18550 What is the board’s role in the budget? 19051 What is the board’s role in the annual financial audit? 19352 What are the signs of fi nancial distress in an organization? 19753 What should we do if we suspect fraudulent activity? 20054 What policies and practices should we adopt to manage confl ict of interest? 20555 How can we protect the organization—and ourselves—from lawsuits? 21056 What is a Form 990? 21657 Why should every board member make an annual monetary contribution? 21958 How can we develop board members’ fundraising skills? 22259 How can we generate revenue beyond fundraising? 22560 How does a nonprofi t operate a for-profit subsidiary? 23061 What’s the best way to keep track of board policies? 236Part Six: Board-Staff Relations62 How does an all-volunteer organization make the transition to paid staff? 24363 What is the board’s involvement in staff selection and management? 24764 What is the ideal relationship between the board chair and the chief executive? 25165 Should the chief executive have a vote on the board? 25766 Should board members be hired as staff members? 25967 How should we evaluate the chief executive? 26168 How do we set fair compensation for the chief executive and the staff? 26569 What is the chief executive’s role in improving the board? 26970 What is the board’s role in relation to the staff? 27371 How can the senior staff contribute to board effectiveness? 27672 How can we facilitate the end of a chief executive’s employment? 28073 What characteristics should we look for in a new chief executive? 28674 How do we fi nd a new chief executive? 291Part Seven: Organizational Change75 What is the typical lifecycle for a nonprofi t organization? 29976 How do we ensure that the organization thrives after the founders depart? 30477 When should an organization consider revising its mission statement? 30778 When should we enter into strategic alliances with other organizations? 31079 When should we consider a merger or acquisition? 31380 How can we expand the organization’s scope to an international level? 31881 Should our charitable organization engage in lobbying? 32382 How should we respond to an organizational emergency or controversy? 32683 What is the board’s role in hiring a consultant? 33084 When should the board consider closing a nonprofit organization? 33285 How does the board keep up with organizational change? 335Conclusion 339Index 343