In this 1-hour webinar hosted by CharityNet USA, we review the 20 best practices for nonprofit board of directors. For more information on nonprofit startup, visit: charitynetusa.com/nonprofit_startup.php

1. Key Speaker
Melanie Swift M.N.M
Director of Nonprofit Services
CharityNet USA
Moderator
Nicole Roach
Marketing Coordinator
CharityNet USA

2. • CharityNet USA: A “One-stop” resource
center for nonprofit organizations
nationwide!
• Key Speaker: Melanie Swift
• Questions
• Recorded Webinar Available At:
http://www.charitynetusa.com/webinararchive/index.php

3. • About Boards of Directors (BoD)
• Twenty Best Practices for BoD
• Conclusion
• Questions

4. Boards of Directors have many
responsibilities and fill various roles:
– Such as
• Provide leadership as a governing body
• Approve annual budgets
• Ensure sufficient available financial resources
• Fulfill legal obligations
• Responsible to stakeholders for organizations’
achievements and shortcomings

5. • Generally elected
• Roles, responsibilities,
and powers are usually
outlined in bylaws
• Members may have diverse backgrounds,
although usually share common goals

6. Governance Hat
 Worn only when in a properly called meeting
Volunteer Hat
 Worn when advising the Executive Director,
fundraising, and helping staff
Implementer Hat
 Seldom worn, as program implementation is
usually the responsibility of staff

7. The following practices are general guidelines,
and should be tailored to meet your specific
needs.
Organization characteristics to consider include:
• Size
• Location
• Industry
• Population served
• 501 status
• Business mindedness
• Other unique factors

9. 20. Stay Mission Driven
 Shape and uphold the mission; articulate a
compelling vision
 Maintain consistency with mission, vision, values
in decisions, policies, and actions
 “Keep the Dream Alive”
19. Strategic Thinking
 Allocate time to what matters most
 Continuously monitor the environment to hone
direction

10. 18. Develop a culture of transparency,
consistency, and accountability.
– Ensure that donors, stakeholders, and interested
members of the public have access to
appropriate and accurate information
regarding finances, operations, and results.

11. 17. Be Results-Oriented
 Continuously measure progress toward
mission fulfillment
 Evaluate efficiency, effectiveness, and
impact of major programs and services
16. Remain Independent
 Mainly volunteer
 Lack of relationships

12. 15. Plan for Revitalization
 Understand the
importance of fresh
perspectives
 Energize the board
through planned
turnover and thoughtful,
continuous recruitment

13. 14. Develop a Conflict of Interest policy
– Be sure members abstain from voting when
there is a potential conflict of interest
– Ensure arm’s length negotiations
13. Develop and adopt a Whistle Blower policy
– It’s important for employees to know they will be
protected if/when they protect the organization

14. 12. Boards of Directors should meet at least
once per quarter.
11. Documentation is crucial
 Meetings, decisions, presentations, and
so forth should be documented
appropriately
 Examples of documents:
minutes, receipts, and
handbooks

15. 10. Charity should begin at the office
– As leaders of the organization, members should
make it a point to donate their time and
money to their organization
– 100% Contributing Boards ideal
9. Fundraising Accountability
– Members often raise funds and garner
resources
• Often have an extensive network
• Accountable to their word and for their efforts

16. 8. Sustain Resources
 Link bold visions and ambitious plans to
financial support
 Approve activities that can be realistically
financed with existing or attainable
resources

17. 7. Always have financials audited by an
outside organization.
 Change auditors/auditing organization
every five years.

18. 6. Board members should be aware of current
laws and policies
 This will help keep the organization out of
legal trouble
5. Ensure Compliance
 As part of ongoing strategic planning, be
aware of all federal, state, and local
compliance issues

19. 4. The Board of Directors should
comply with the Duty of
Loyalty
– In other words, Boards of
Directors needs to look out
for the best interest of the
organization
– Never use information or
resources obtained as a
member of the board for
personal gain

20. 3. Fulfill the SOX Act audit standards
– The Sarbanes-Oxley Act of 2002 is mandatory.
– Focus on, and tailor appropriate organizational
response to meet SOX requirements.
– Created to protect against accounting crimes
by outlining new standards for accountability.
**For more information, please see: www.soxlaw.com

21. 2. The Board of Directors and the organization’s
Executive Director should have a strong
working relationship.

22. 1. Continuously
review your Board
of Directors’ best
practices and
board
effectiveness

23. • Members should be chosen carefully, and
understand their roles and responsibilities
• It is crucial for members to follow legal
regulations and work for their organization’s
success, even when it means making
difficult decisions
• Every organization should have a formal
Board Policy Manual

24. • Developing a Strategic Plan: 6-17-2010 3pm EST

25. • CharityNet Nonprofit Services
• 501c3 Prep
• Grant Writing
• Strategic Planning
• Website Development
• Graphic Design
• Marketing
• Bookkeeping & Accounting
• One-on-Consultation Time

28. • Contact Us
• Nicole Roach: Nicole@bizcentralusa.com
• Melanie Swift: Melanie@bizcentralusa.com
• Visit www.CharityNetUSA.com or Call 407-857-9002
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CharityNet USA