| Many people are involved with helping small, non-profit | | | | board members. Do you need specific skill sets, |
| organizations, in a variety of roles. Organizations range | | | | individuals with lots of contacts in the community, or |
| from semi-organized children's sports teams, to local | | | | maybe wealthy individuals who will contribute to your |
| chapters of professional societies, to well-established | | | | cause? Whatever you need or want, be specific. You |
| charitable service providers. The range of organization | | | | can even identify specific individuals you want on your |
| and management varies as well, from | | | | board. |
| seat-of-the-pants, one or two people overwhelmed | | | | Why would anyone want to be on your board? It's |
| from doing the bulk of the work, to professionally | | | | often a thankless and time-consuming job, so you |
| managed with paid staff, and everything in between. | | | | have to really market it. Don't lie, or overly sugarcoat it, |
| Here are some tips to help you and your organization | | | | but state the benefits of being on your board and tell |
| become more effective and successful. | | | | the people why you want them to help you. If you're |
| Defining Non-profit | | | | passionate about your organization, potential board |
| Many people are confused about the concept of a | | | | members will pick up on that and that might be |
| non-profit organization. The terms Non-profit, | | | | incentive enough to get them to help you. Other |
| Not-for-Profit, or Tax-exempt, all mean the same thing | | | | benefits include making new contacts, helping a worthy |
| and is simply a special type of business entity. An | | | | cause, and the fact that it looks good on their resume. |
| organization that is recognized by the Internal Revenue | | | | Of course, the people who do not need these benefits |
| Service (IRS) as a non-profit, or tax-exempt, business | | | | will be a tougher sell, but a lot of times people will help |
| is treated differently than a regular for-profit business | | | | just because you ask them. You'd be surprised how |
| for tax purposes. Meaning a non-profit generally | | | | often people are just waiting to be asked. |
| doesn't pay taxes. Some of the tax issues can be | | | | One thing you absolutely have to do is define the roles |
| complex, so if you have any questions or doubts, | | | | and responsibilities of the board members, and |
| contact an accounting professional familiar with | | | | communicate these to your board members. Even if |
| non-profit tax issues. Generally, though, if you are a | | | | they're pretty simple, and seem obvious, this is vital to |
| small organization, have received your non-profit status | | | | your success. Everyone needs to know why they're |
| from the IRS (you have to apply for it), and adhere to | | | | on the board and what they're supposed to do. You |
| your defined mission, you're fine. | | | | can't afford to have dead weight on your board. Be |
| The most important thing to remember is that | | | | tough, and hold the board members to their |
| non-profit does not mean for-loss. You still have to | | | | agreements of their duties. |
| make money. The only real difference between a | | | | Meetings |
| non-profit and a for-profit business is where any extra | | | | You're going to have meetings, probably different |
| money goes. For any organization to remain viable, | | | | types. Your board will have board meetings, and you |
| you have to have more money coming in than you | | | | might have staff meetings, volunteer meetings, general |
| have going out. What happens to that excess | | | | members meetings, or some other type of meeting. |
| between what comes in and what goes out is what | | | | Many people dread meetings, and for good reason. |
| makes the difference between a non-profit and a | | | | Poorly run meetings not only do no good, they can do |
| for-profit business. In a non-profit, the excess stays in | | | | harm. So, run good meetings. |
| the organization to help it achieve its mission. In a | | | | Always, always, always, have a defined agenda. |
| for-profit business, the excess (the profit) is distributed | | | | Distribute the agenda prior to the meeting so everyone |
| to the owners of the business. It's that simple. | | | | knows what is going to be discussed. Stick to the |
| So, remember, you still have to make money. You | | | | agenda. Set a defined meeting length, and assign a |
| have to have more money coming in than you have | | | | time to each agenda item. Stick to the time limits. |
| going out. You just use all the money to help the | | | | Along with the agenda, define the expected results of |
| organization do what it was set up to do. | | | | the meeting, meaning define what will be accomplished |
| Planning | | | | at the meeting. A simple expectation is to discuss |
| One of the most helpful and least used tools for any | | | | each agenda item and vote on all items that need to |
| organization is planning. Instead of just starting to do | | | | be voted on. Depending on the reason for the meeting |
| things, sit down first and plan what you're going to do. | | | | and the agenda items under discussion, you may have |
| Then on an ongoing basis, sit down for regular planning | | | | other expectations of what is to be accomplished. |
| sessions. The benefits are enormous. | | | | Board of directors meetings are inherently different |
| The level of detail of your plans, and the amount of | | | | than most other types of meetings. The board sets |
| time spent planning, will depend on the size of your | | | | high level policy and direction, so the board meetings |
| organization and what it is you do. If you're helping with | | | | are similarly high level. Most of the work of the board is |
| your children's sport team, and you're doing the bulk of | | | | done outside of the board meetings. The board |
| the work yourself, you might have just a short to-do | | | | meetings are generally fairly simple. Information and |
| list that you put together in 15 minutes. More likely, | | | | results of outside activities is presented, in synopsis, |
| though, you'll need to sit down with the other board | | | | final discussions of important topics are made, and |
| members or volunteers for an hour or two, in several | | | | items are voted on. There should be few surprises at |
| sessions, to develop a plan with enough detail that will | | | | a board meeting. Most of the information should have |
| give you clear direction and help you guide the | | | | already been distributed, analyzed, and discussed. |
| organization. | | | | Items are clarified, discussions that are best made |
| When planning, always start with the end goal in mind. | | | | face-to-face are made, and votes are held. If you're |
| Set the target. Identify specific goals that you want to | | | | doing the bulk of your work in the board meetings |
| reach. Again, depending on your size and the nature of | | | | themselves, you can immediately become more |
| your organization, your planning time frame will vary. If | | | | effective as an organization by making the changes |
| you're just getting started with planning, your time | | | | outlined above. |
| horizon will be shorter. As you become more | | | | Volunteers |
| experienced with the planning, you can extend your | | | | For most small non-profit organizations, volunteers are |
| time horizon out a little further. For your child's sports | | | | the backbone that allows you to continue operating. |
| team, your plan might just cover the length of the | | | | Without quality volunteers, you won't exist as an |
| season, maybe even just three or four months. Most | | | | organization for very long. At least you won't be able |
| organizations, however, will want to plan two or three | | | | to accomplish what you set out to do. So be sure to |
| years out. Any longer than that, you're generally talking | | | | take care of your volunteers. |
| about larger, well established, and more complex | | | | All volunteers should have defined roles, no matter |
| organizations. | | | | how simple their tasks. Be sure to train all your |
| So what's in these plans that you're making? There's | | | | volunteers, no matter how simple the tasks. Training |
| going to be two parts to the plan; the goals you want | | | | should include the specific tasks the volunteers will be |
| to achieve, and how you're going to reach them. If | | | | undertaking, as well as the mission, philosophy, and |
| your working on a two year plan, the goals will define | | | | policies of the organization. Again, no matter how |
| where you want to be, what you want to be doing, | | | | simple the tasks, mission, and policies. |
| two years from now. Say you're a service type | | | | Always assign tasks, rather than just letting the |
| organization that helps homeless people. Your goals | | | | volunteers do what they think is best. You should be |
| might include that two years from now you're going to | | | | flexible, of course, but in order to keep the organization |
| be providing two meals a day to 500 individuals a day, | | | | moving in the direction that is defined by the board, the |
| up from one meal a day to 100 individuals. Maybe | | | | volunteers must be assigned tasks that support the |
| you're a rugby club, and your goals might include that in | | | | defined goals. |
| two years you're going to have a paid coach on staff, | | | | Recognize and reward your volunteers. Some |
| two full sets of team owned game jerseys, or the | | | | organizations are very good at this, but others take |
| funds to begin building your own clubhouse. OK, that | | | | their volunteers for granted and fail to offer the |
| might be a stretch for most clubs, but you get the idea. | | | | necessary recognition and rewards. This is not usually |
| Once you set these goals, you have to identify how | | | | by design, just from neglect. No matter how busy you |
| you're going to achieve them. If you're going to | | | | are, take the time to praise your volunteers for all the |
| increase from one meal a day to two meals a day, or | | | | hard work they're doing. |
| go from no team owned game jerseys to two full | | | | Don't overwhelm your volunteers. Some people can't |
| sets, how are you going to do that? What are the | | | | say no. Don't let them take on more work than they |
| intermediate steps? Who is responsible for doing | | | | should. Some people are driven to help, and are almost |
| what? If you're going to provide more meals, you need | | | | impossible to hold back. Hold them back. They'll be |
| more food. You might need larger or better equipped | | | | more valuable to you over the long term, and their |
| facilities. You might need more volunteers. If you | | | | health, mental and physical, is of paramount importance. |
| determine that you'll need 20 volunteers a day, but you | | | | Make new volunteers feel welcome. Again, some |
| now only have 5, you have to determine how you'll get | | | | organizations are good at this, while others assume |
| the additional volunteers. Maybe you advertise more, | | | | since they volunteered they'll figure out what's going on |
| apply for more grants, or hire a volunteer coordinator. | | | | and find their own way. This is not true. Every single |
| Whatever the steps are to reach those goals, write | | | | new volunteer should be formally welcomed, told that |
| them down so everyone knows what needs to be | | | | they are appreciated, and told where they fit in with |
| done and who's responsible for doing it. | | | | the organization. The training mentioned above should |
| When you plan, you have to monitor your progress | | | | follow. |
| against that plan. You don't want to wait until the end | | | | Accounting and Record Keeping |
| of the plan's defined time period to see whether you | | | | Keep records. Keep good records. Protect your self, |
| achieved the goals that you were aiming for. You | | | | protect your board members, volunteers, clients, |
| want to monitor progress along the way, so that if | | | | members, and customers, and protect your |
| things aren't going as expected you can make | | | | organization. Don't rely on your, or anyone else's, |
| adjustments to get back on track. Or, if things are | | | | memory. Have proof of what you've done. This is |
| going as planned, you can focus on the other areas | | | | especially important with everything having to do with |
| that need more attention, and not waste time on things | | | | money. As with everything else, your record keeping |
| that are working well. | | | | system will depend on the size and complexity of your |
| Another benefit of planning is that you have something | | | | organization. You might just have a notebook, receipt |
| to evaluate new or unexpected opportunities against, | | | | book, and bank statements, or you might need a |
| rather than just trying to figure out on they're own if | | | | full-blown management system that includes |
| they're a good idea or something you should pursue. | | | | accounting and financial information, sales and |
| Something that sounds like a good idea might not be | | | | customer relations systems, and manufacturing, |
| something you want to pursue when it's evaluated | | | | warehousing, and inventory systems. Use what is |
| against your plan. Of course, if it is a good idea, and | | | | appropriate for you. |
| has been properly analyzed and evaluated, you can | | | | If necessary, hire people just like any other business. |
| change your plans. It's always better to plan, and | | | | Some of the smallest non-profit organizations hire |
| change the plan when called for, than not to plan at all. | | | | part-time administrative help. In today's modern world, |
| Planning helps you focus, and that's what you need. | | | | you might even find it appropriate to hire virtual |
| Board of Directors | | | | administrative help. |
| The board of directors, or the people who are going to | | | | Set up controls. This is another area where it is |
| run, guide, and direct your organization, is always a fun | | | | especially important for everything having to do with |
| and interesting topic. Except for the tiniest of | | | | money. Setting up controls means putting in systems |
| organizations, you should have an official board of | | | | to prevent or detect any sort of wrongdoing or |
| directors whose job it is to guide and set the direction | | | | impropriety. For example, if your organization has a |
| of the organization. Many times, these are the same | | | | checkbook, you want to limit the number of people |
| people who do all the work, but not always. Again, it | | | | who have access to the checks and who can write |
| depends on your size and the nature of your | | | | the checks. It's a good idea to have different people |
| organization. | | | | who control the checkbook and have the authority to |
| The big question is who should be on the board. This | | | | sign the checks. Or, you might want the bank to send |
| can be difficult because the people, or type of people, | | | | the account statement to someone other than the |
| who should be on the board are not necessarily the | | | | person who writes the checks or makes deposits. |
| people who actually will be on the board, for a variety | | | | Other controls include separating duties or having one |
| of reasons. Many times it is difficult, if not impossible, to | | | | person check the results of another person. Basically, |
| actually attract the people that you want on the board. | | | | you want to remove temptation and make it difficult |
| One reason is that the people who make the best | | | | for anyone to do anything improper. |
| board members are already on other boards, and they | | | | Even if you set up good controls, you should regularly |
| only have so much time. Also, many people may not | | | | conduct audits and check up on things. Not only does |
| know about your organization, and many people just | | | | this help prevent anything nefarious from happening, it |
| aren't interested in what your organization does. So, | | | | helps to keep the organization on-track and moving in |
| what to do? | | | | the direction you want to go. |
| I always like to start with stating what I want. Identify | | | | Conclusion |
| the people, or types of people, you want on the board. | | | | Go out and do good things. Put a little effort into the |
| If you don't start with what you want, you'll never get | | | | planning and infrastructure of your organization and |
| them. You might have to take what you can get, but | | | | you'll reap the rewards in the long run. Keep the level |
| at least identify what you want. If you identify the type | | | | of effort and complexity appropriate to your |
| of people you want, you can then target them and | | | | organization, and try to keep sight of when it's time to |
| work towards getting them to help you. If you don't, | | | | add more formality to your systems. Best of luck to |
| you'll always be stuck with whatever comes your | | | | you and your organization. |
| way. Identify the skills and attributes of your ideal | | | | |