The Role of Directors

Trek Advancement

Why do you give your time, talent and treasure?

Seeking to put God's love into action, Habitat for Humanity brings people together to build homes, community, and hope.

30,000 ft. View

• Ensure effective organizational planning
• Make sure legal obligations are fulfilled
• Provide proper financial oversight
• Select and evaluate CEO
• Improve the organization's public standing
• Recruit and orient new board members
• Provide sufficient resources

Effective Planning

• Mission Statement and organizational vision
• Current programs and services
• New programs and services
• Supporter development and retention
• Staffing - current and future
• Financial planning and projections

Untitled Slide

Untitled Slide

Legal Obligations

It's up to board members to be aware of applicable federal, state and local laws and ensure the nonprofit meets those requirements.

Duty to Care

• Directors must be informed and exercise independent judgement.
• Directors discharge their duties in good faith, with the care that an ordinary, prudent person in a like position would reasonably believe appropriate under similar circumstances.

Liability & Business Judgement Rule

• If action was undertaken in good faith, in a manner reasonably believed to be in the best interests of the corporation, and based on the director's independent and informed judgment.

Duty of Loyalty

• Conflicts of interest
• Corporate opportunity
• Confidentiality

Proper Governance

• Clear priorities (to articulate and manage expectations)
• Budget management
• Gift acceptance policies
• Reporting and accounting policies
• Endowment investment policies
• Purposeful committee work

Financial oversight

• Learn how to read and interpret financial statements
• Review and approve the nonprofit’s budget
• Approve major organizational decisions, such as programming or other large expenditures

What that means

• Implement a Board culture that is strategic vs. operational - not involved with day-to-day operations
• Set vision and the priorities
• Encourage Board leadership as a critical component of success (you should be the “pacesetters”)
• Move peer members to “ownership” on the affinity continuum

Select and Evaluate CEO

• Organizational assessment
• Oversee selection process
• Annual evaluation
• Set compensation

Improve Public Standing

What that means

• Attend events
• Give - If you don't why should anyone?
• Leverage relationships
• Be a champion with friends, family and colleagues

Recruit and Orient

• Determine gaps that need to be filled
• Reach out to qualified individuals
• Interview & make decisions
• Ensure no conflicts of interest
• Have job descriptions for members
• Clear expectations

Make Membership Attractive

• Inspiring allegiance to your organization
• Increasingly personal for members

What is most important?

It's Fundraising!

Fundraising

The Directors Role in Fundraising

Leveraging Volunteer Influence

• Improving top donor pipeline
• Maximizing gifts from others

Board Member's Advantage

• Honest broker in cultivation process
• Social or professional peers
• Similar capacity to give
• Network of connections

Areas of Greatest Impact

Initiating relationships

• Informing strategy development
• Making initial contact
• Participating in the first meeting

Deepening Relationships

• Participating in ongoing face-to-face interactions

Soliciting large gifts

• Attending solicitation meetings and, if appropriate, asking

Keys to Success

• Invest for the long haul
• Fundraising is everybody’s job
• Donor-centered approach
• Board buy-in and engagement
• Mission focused action

Challenges to Creating Successful Programs

Common Challenges

• Culture of philanthropy
• Realistic goals
• Board involvement
• Executive Director fundraising capacity
• The Vicious Cycle
• Professionals leaving the field
• Director of Development (DOD) vacancy lengths

Untitled Slide

Untitled Slide

Untitled Slide

Untitled Slide

Untitled Slide

Basic Responsibilities

• Knowledge of the organization's purpose and mission
• Committing to the organization's values
• Accepting the responsibility to maintain the public trust
• Responsible for organizational oversight

Continued...

• Evaluating organization's mission and developing a strategic plan
• Assisting the CEO in managing the organization and implantation of the strategic plan
• Regular meeting attendance, prepared for thoughtful and informed decision making

Continued...

• Assisting with achievement of fundraising goals
• Fiduciary oversight of resources
• Serving as an ambassador
• Assessment of Board performance

Untitled Slide

Sources

• https://www.wildapricot.com/blog/nonprofit-board-responsibilities
• UnderDevelopped: A National Study of Challenges Facing Nonprofit Fundraising