Your Organization Address, Telephone,

Transcription

1 Your Organization Address, Telephone, Board of Directors Candidate Application Name, phone, address of organizational representative: _ Please return this application to the above address by (date): Date Name First MI Last Familiar name Residence Address Phone Employer Name Your title Address Phone Type of business or organization Primary service(s) and area/population served Preferred method of contact ( ) Work ( ) Residence Please list boards and committees that you serve on, or have served on (business, civic, community, fraternal, political, professional, recreational, religious, social). Organization Role/Title Dates of Service Provided by Nonprofit Works (585)

2 Education/Training/Certificates Optional Have you received any awards or honors that you d like to mention? How do you feel (name of org) would benefit from your involvement on the Board? Skills, experience and interests (Please circle all that apply) Finance, accounting Personnel, human resources Administration, management Nonprofit experience Community service Policy development Program evaluation Public relations, communications Education, instruction Special events Grant writing Fundraising Outreach, advocacy Other Other Other Please list any groups, organizations or businesses that you could serve as a liaison to on behalf of (name of org). Please tell us anything else you d like to share. Thank you very much for applying Provided by Nonprofit Works (585)

3 Sample Board Orientation Checklist New Board members receive written notice of their election to the board stating dates their term begins and ends, regular meeting dates, times, places, and information about the board orientation process. Board Orientation Process: Special meeting for new Board members Orientation packet Personal phone call or meeting with an experienced Board member Follow up personal contact after first three months of Board service Board Orientation Packet: Statement of purpose or mission (if developed and adopted by the Board) Brief overview of agency programs and services Agency annual report with financial statements for the past fiscal year By Laws Personnel Policies in brief, or brief overview of personnel system for larger organization including: staff organization chart, number of professional and non-professional staff, identification of any unions or employee bargaining associations, date of last major revision of Personnel Policies. Policy statement and procedures which have been formally adopted by the Board Alphabet Soup: Glossary of abbreviations and acronyms used to refer to agencies and programs with which this organization is connected List of all Board members' names, addresses, phone numbers, and terms of office List of committees with chairperson identified. If committees have regular meeting times and places, these are included. Board organization chart showing committee and sub-committee structure. Most recent financial statements and current annual budget. Minutes for most recent Board meeting.

4 Listing of facilities owned or rented by the organization for its operations, including address, staff member in charge, and general purpose of the facility. Board Orientation Meeting: Opportunity for personal introductions among new and experienced Board members. More formal introduction of new Board members by the nominating committee, highlighting background and credentials for new members Brief presentations by experienced Board members explaining Board role and procedures Brief presentation by staff about scope of agency's services Structured opportunity for small group discussion by interest areas (i.e. financial, personnel, programs, planning, fundraising) Clear statement of expectations of Board members, including role in agency fundraising Open-ended opportunity for questions from new Board member Personal Contact with Experienced Board Member: Discussion of new Board member preferences for committee assignment Brief explanation of upcoming significant Board decisions or events Specific commitment to greet the new Board member at the next Board meeting and provide personal introductions to Board members with common interests Follow Up Contact After Three Months of Service: Opportunity for general comments about Board service so far Inquiry into involvement with committees - if no involvement yet, discussion of barriers and problem solving Request for feedback in orientation process

5 Board Job Descriptions What is the job description of a board chair? Oversees board and executive committee meetings Works in partnership with the chief executive to make sure board resolutions are carried out Calls special meetings if necessary Appoints all committee chairs, and with the chief executive, recommends who will serve on committees Assists chief executive in preparing agenda for board meetings Assists chief executive in conducting new board member orientation Oversees searches for a new chief executive Coordinates chief executive's annual performance evaluation Works with the governance committee to recruit new board members Acts as an alternate spokesperson for the organization Periodically consults with board members on their roles and helps them assess their performance What is the job description of a board vice chair? Attend all board meetings Serve on the executive committee if one exists Carry out special assignments as requested by the board chair Understand the responsibilities of the board chair and be able to perform these duties in the chair's absence Participate as a vital part of the board leadership What is the job description of a board secretary? Attend all board meetings Serve on the executive committee if one exists Ensure the safety and accuracy of all board records Review board minutes Assume responsibilities of the chair in the absence of the board chair, chair-elect, and vice chair 1828 L Street, NW Suite 900 Washington, DC Fax BoardSource

6 Provide notice of meetings of the board and/or of a committee when such notice is required What is the job description of a board treasurer? Attend all board meetings Maintain knowledge of the organization and personal commitment to its goals and objectives Understand financial accounting for nonprofit organizations Serve as the chair of the finance committee Manage, with the finance committee, the board's review of and action related to the board's financial responsibilities Work with the chief executive and the chief financial officer to ensure that appropriate financial reports are made available to the board on a timely basis Present the annual budget to the board for approval Review the annual audit and answer board members' questions about the audit References Roles and Responsibilities (BoardSource 2008) BoardSource Page 2 of 2

7 Sample Board Committee Job Descriptions Fundraising Committee The Fundraising Committee's job is not simply to raise money. Instead, the Fundraising Committee is responsible for overseeing the organization's overall fundraising and, in particular, the fundraising done by the board. To accomplish this, its responsibilities are: To work with staff to establish a fundraising plan that incorporates a series of appropriate vehicles, such as special events, direct mail, product sales, etc. To work with fundraising staff in their efforts to raise money To take the lead in certain types of outreach efforts, such as chairing a dinner/dance committee or hosting fundraising parties, etc. To be responsible for involvement of all board members in fundraising, such as having board members make telephone calls to ask for support, and To monitor fundraising efforts to be sure that ethical practices are in place, that donors are acknowledged appropriately, and that fundraising efforts are cost-effective. Finance Committee The Finance Committee (often called the Budget and Finance Committee) tasks are: To review budgets initially prepared by staff, to help develop appropriate procedures for budget preparations (such as meaningful involvement by program directors), and on a consistency between the budget and the organization's plans To report to the board any financial irregularities, concerns, opportunities To recommend financial guidelines to the board (such as to establish a reserve fund or to obtain a line of credit for a specified amount) To work with staff to design financial reports and ensure that reports are accurate and timely To oversee short and long-term investments, unless there is a separate investments committee To recommend selection of the auditor and work with the auditor, unless there is a separate audit committee, and To advise the executive director and other appropriate staff on financial priorities and information systems, depending on committee member expertise. Board Development Committee In some ways the most influential of all the committees, the Board Development Committee (sometimes called the Nominating Committee or the Committee on Trustees) is responsible for the general affairs of the board. While the specific tasks of this committee vary greatly from organization to organization, they usually include some or all of the following responsibilities: To prepare priorities for board composition To meet with prospective board members and recommend candidates to the board To recommend a slate of officers to the board To conduct orientation sessions for new board members and to organize training sessions for the entire board, and To suggest new, non-board individuals for committee membership.

8 Program Committee The Program Committee is often comprised of board members who are most familiar with the approaches and operations of the organization's programs. (Some boards feel that the organization's program--its "products"--should be overseen by the whole board.) Depending on its make-up and programs, this committee's most common responsibilities are: To oversee new program development, and to monitor and assess existing programs To initiate and guide program evaluations, and To facilitate discussions about program priorities for the agency. Other Board Committees Executive Committee Sometimes an organization with a large board forms an Executive Committee, which is a smaller group that meets more frequently than the full board. Some Executive Committees are comprised of the board officers; others include committee chairs; and some choose other configurations, such as the board officers and the Fundraising Committee chair. A risk with Executive Committees is that they may take over decision-making for the board, and other board members will feel they are only there to rubber stamp decisions made by the Executive Committee. Audit Committee The role of the Audit Committee encompasses interviewing auditors, reviewing bids, recommending selection of an auditor to the board, receiving the auditor's report, meeting with the auditor, and responding to the auditor's recommendations. For many organizations, the annual audit is the only time the organization's financial systems are reviewed by an independent outsider, and as a result the auditor's report is an important mechanism for the board to obtain independent information about the organization's activities. On smaller boards, the functions of the Audit Committee are managed by the Finance Committee. Personnel Committee The functions of the Personnel Committee include drafting and/or revising personnel policies for board approval, reviewing job descriptions, establishing a salary structure, and annually reviewing staff salaries, and reviewing the benefits package. In some organizations the board's Personnel Committee also acts as a grievance board for employee complaints. Because difficulties can arise if many less serious complaints are brought directly to the board rather than to the staff person's supervisor, it is preferable for the personnel committee to act only on formal written grievances against the executive director or when an employee formally appeals a decision by the executive director to the board. Public Policy Committee Organizations whose mission includes Public Policy or education may create a Public Policy Committee that stays informed on relevant matters and brings proposals to the table for a board position or an organizational activity. For example, a Public Policy Committee might draft a written position paper related to pending cuts in welfare funding or propose that the board join a coalition of neighborhood nonprofits protesting the closure of a park.

9 Management Oversight Committee for geographically distant boards Boards where the members are geographically distant from one another have a difficult time keeping in touch with the work of the staff. The board may only meet twice a year or quarterly, and much of the contact among board members may be through or just with the staff. To ensure financial and legal oversight in between board meetings, some boards establish a Management Oversight Committee (MOC), which meets every 6 weeks and where two of the three members live near the office (the out-of-state member participates by phone). This committee has finance, audit, legal and personnel responsibilities which might be done by separate committees if the organization were larger and working in only one city. The MOC provides a report on the organization's operations to each board meeting. Temporary Committees Some committees are convened on a temporary basis to address a specific, single event or issue. Often called ad hoc committees, they meet for a few months and then disband once their task is completed. Commonly used temporary committees and their designated tasks include: Site Committee: To work with staff to evaluate the existing location and consider a move to a different location, to review a new lease, or to weigh the feasibility of purchasing a building. Special Event Committee: To coordinate the board's assignments on a particular event, such as an annual dinner. CEO Transition or Search Committee: To seek a new executive director, including recommending guidelines and a search process to the board, to take steps to help the new executive succeed. Some search committees hire the new executive director, while other search committees present a group of candidates to be evaluated by a different committee or the whole board. Merger Committee: To pursue a possible merger with another organization, and to bring information and recommendations back to the full board. Planning Committee: To lead a strategic planning endeavor (the planning committee may consist of both board and staff members). Special Issue Committee: To investigate an unusual problem or opportunity, such as negative publicity in the newspaper, deep staff resentment against the executive director, an unusual grant opportunity or a possible joint project with another organization. Setting up a Special Issue Committee to research the situation and report back to the board ensures that decisions are based on adequate information.

10 BOARD SERVICE READINESS QUIZ While board service can be an extremely rewarding experience and can greatly impact the organization, it may not be the right fit for you at this time of your life. To determine whether board service is right for you right now, answer the following questions: 1. I am interested in advancing a cause that I feel passionate about. 2. I am curious to delve into and learn about issues facing my community and the world. 3. I am interested in a new environment and experience to further develop myself as a leader. 4. I am interested in meeting people outside of my usual professional and social circles. 5. I understand the roles and responsibilities of being a board member. 6. I am comfortable making a personal contribution to the organization. 7. I can imagine asking others to contribute financially to a cause that I am passionate about. 8. I have enough autonomy in my work schedule to accommodate both board and committee meetings. 9. I am patient and collegial when working as a team. 10. I can commit the time necessary to be an exceptional board member. Yes/No If you answered more than two questions with a No, then you may want to consider other ways to get involved with an organization prior to joining the board, including: VOLUNTEERING As a volunteer, you may help serve food to the homeless, do data entry in the office on a regular basis, mentor a student, advocate for environmental causes, or help with a special event. You are directly involved in helping the organization do its work rather than serving in a policy and oversight capacity. If you want a hands-on experience, direct-service volunteering may be your best bet. Want to learn more? Visit VolunteerMatch to find opportunities in your area. PRO BONO PROFESSIONAL SERVICE Pro bono professional assistance is one of the primary benefits you can offer a nonprofit. Whether you are an attorney, IT expert, or realtor, your free-of-charge services are widely needed in organizations that otherwise would not be able to afford a high level of expertise. Want to learn more? Visit Taproot and Catchafire to find opportunities. SERVING ON ADVISORY GROUPS OR COMMITTEES Numerous nonprofits form advisory groups to help with fundraising or outreach, supplement the board s expertise, or provide direct contact with constituents, and many organizations invite non-board members to serve on some board committees. If you are interested in serving on an advisory group or board committee, the process will be the same as looking for a board service opportunity outlined in our Board Recruitment Center.

11 Board of Directors Self Evaluation Form Board Member: 1. How do you assess your contribution to this organization? (You might want to include such things as: attendance at board meetings, participation, promotion and fund-raising, prayer, committee work, or any other areas on which you would like to comment) 2. Do you feel that your financial contributions to the organization are at a level which is personally significant for you? Why or why not? 3. How has our organization invested in your growth as a board member? 4. What would you like to contribute to or involve yourself in if you were to serve another term? 5. How would you like our organization to invest in and facilitate your personal development as a board member? 6. What changes would you suggest, as a board member, in the operation and involvement of the board?

12 Balance Sheet Cheat Sheet The balance sheet also called the Statement of Financial Position serves as a snapshot, providing the most comprehensive picture of an organization s finanical situation. WHY IS THE BALANCE SHEET IMPORTANT? The balance sheet reports an organization s assets (what is owned) and liabilities (what is owed). The net assets (also called equity, capital, retained earnings, or fund balance) represent the sum of all the annual surpluses or deficits that an organization has accumulated over its entire history. If it happened in your financial past, the balance sheet reflects it. The balance sheet also indicates an organization s liquidity by communicating how much cash an organization has at present and what assets will soon be available in the form of cash. Assets are usually listed on a balance sheet from top to bottom by rank of liquidity (i.e. from most easily turned into cash to those assets most difficult to turn into cash). Understanding liquidity is important to understand how flexible and responsive an organization can be. SIX KEY MEASURES The balance sheet has a lot of valuable information. Our Balance Sheet Cheat Sheet highlights six key measures that are useful for all types of nonprofits. Below is a brief explanation of each of these financial indicators: Days cash on hand measures liquidity and estimates how many days of organizational expenses could be covered with current cash balances. The current ratio measures assets that will be cash within a year and liabilities that will have to be paid within a year and can provide an indication of an organization s future cash flow. By filtering out the portion of total net assets that are tied up in fixed assets (i.e. assets that will likely never be converted to cash), the working capital ratio measures how much of an organization s resources are unrestricted and available for current and future use. Recognizing temporarily restricted net assets and representing them as such in financial statements is crucial so that organizational decision-makers are aware of obligations in the future. The change in unrestricted net assets indicates if an organization operated the most recent fiscal period at a financial gain or loss. This line is a direct connection with and should be equal to the bottom line of an organization s income statement (also called a Statement of Activities or profit/loss statement). The debt to equity ratio measures financial leverage and demonstrates what proportion of organizational debt versus organizational net assets are being utilized to support the organization s finances. Some of the ratio calculations require information that can not be found on the balance sheet. A few pieces may need to be found on the income statement or other financial statements. OTHER CONSIDERATIONS Nonprofits vary in size, structure, income reliability, and other financial aspects, which makes it inappropriate to establish a set of standards or benchmarks for most financial ratios. Nonprofit leaders should be able to articulate and understand these calculations and their relevance, as well as monitor selected measures over time to gain an accurate understanding of financial trends. Your organization is heading somewhere do you know where? Our mission is to strengthen community by investing capital and expertise in nonprofits. Find out more about Nonprofits Assistance Fund s loans, training,resources, and financial advice tailored for nonprofits at: Copyright Nonprofits Assistance Fund st Avenue South, Suite 210 Minneapolis, MN Tel:

13 Balance Sheet Cheat Sheet Current ratio: Current assets Current liabilities $256,500 $197,203 = 1.3 Change in unrestricted net assets: Also called net income, profit/loss, and surplus/deficit. $27,224 surplus All Services to All People, Balance Sheet, December 31, 2014 Unrestricted Temp. Restr. Total ASSETS Cash in Checking 65,570 65,570 Savings 57,800 40,000 97,800 Investments 26,000 26,000 Accounts Receivable 51,130 51,130 Govt Grants & Contracts 39,000 39,000 Receivable Grants Receivable 40,000 40,000 Pledges Receivable 17,000 17,000 Subtotal Current Assets 256,500 80, ,500 Prepaid Expense 2,200 2,200 Long-Term Pledges Receivable 10,000 10,000 Land 20,000 20,000 Building 609, ,386 Furniture & Equipment 177, ,300 Computer Equipment 39,110 39,110 Accumulated Depreciation (181,590) (181,590) Subtotal Long-Term Assets 676, ,406 Total Assets 932,906 80,000 1,012,906 LIABILITIES & NET ASSETS Accounts Payable 49,055 49,055 Payroll Taxes Payable 6,024 6,024 Deferred Revenue 5,500 5,500 Accrued Vacation 26,720 26,720 Note (loan) Payable 80,000 80,000 Current Portion Long-Term Debt 29,904 29,904 Subtotal Current Liabilities 197, ,203 Mortgage Loan Payable 482, ,662 Less: Current Portion (29,904) (29,904) Subtotal Long-Term Liabilities 452, ,758 Total Liabilities 649, ,961 Net Assets Net Assets Beginning of Year 255,721 20, ,721 Change in Net Assets 27,224 60,000 87,224 Total Net Assets 282,945 80, ,945 TOTAL LIABILITIES & NET ASSETS 932,906 80,000 1,012,906 Days cash on hand: Cash and current investments Annual cash requirement / 365 $65,570 + $57,800 + $26,000 $878,325* / 365 = 62 days cash *Annual cash requirement ($878,325) can be found using information on the income statement. Working capital ratio: Unstricted net assets - net fixed assets Annual cash requirement / 365 $282,945 - ($20,000 + $609,386 + $177,300 + $39,110 - $181,590 - $482,662) $878,325* / 365 = 42 days working capital Debt to equity ratio: Total liabilities Total unrestricted net assets $649,961 $282,945 = 2.3 Temporarily restricted assets: Do we have assets obligated for use in a future period? Copyright Nonprofits Assistance Fund 2