Board Member Roles Responsibilities West Bank Business Association

Our Mission Fuel the effectiveness of nonprofits with guidance, expertise, and capital.

Session Overview • Fiduciary duties • Board member responsibilities • Discussion

You’re Legally Bound! Fiduciary Duties • Fiduciary = Involving Confidence or Trust • Board members must exercise duty of care that “an ordinarily prudent person…would exercise…” • • • Active participation Committees Board actions Minutes Books and records Workbook Page 14 • • Accurate record keeping Charitable assets Resources Investigations From the Office of Minnesota Attorney General, Fiduciary Duties of Directors of Charitable Organizations

You’re Legally Bound! Fiduciary Duties • Board members must exercise duty of loyalty – the director must put the good of the organization first • • • Conflicts of interest Written policy Loans Corporate opportunity Internal Revenue Code Workbook Page 14 From the Office of Minnesota Attorney General, Fiduciary Duties of Directors of Charitable Organizations

You’re Legally Bound! Fiduciary Duties • Board members must exercise duty of obedience – the director must follow governing documents, carry out mission, and assure funds are used correctly. • • • State and federal statues Filing requirements Governing documents Board training Outside help Workbook Page 14 From the Office of Minnesota Attorney General, Fiduciary Duties of Directors of Charitable Organizations

Board Member Responsibilities Workbook Page 17

Lead Strategically • Ensure strategic planning/thinking • Monitor and evaluate programs, outcomes, impact, and performance • Create robust meetings Workbook Page 19 -21

Ensure Financial Stability Business Model Program costs Infrastructure Revenue Mix ital p a C e ctur u r t S Workbook Page 26 -27 8

Be An Ambassador & Build Relationships • • Have an “elevator speech” Support strategic alliances and collaboratives Participate in fundraising efforts Enhance the organization’s public image Workbook Page 30 -32

Participate in Fundraising • Assist with the development cycle Stewardship Solicitation Cultivation Identification • • • Provide names Bring people to events Speak at events Host an event Find auction items Write thank you notes Workbook Page 32

Make a Personal Gift Total Charitable Giving in Minnesota Q Does your board require a personal gift? Workbook Page 32 A 69% Yes

Supervise and Support Executive Director • Select, set goals, evaluate and support the ED • Attend to succession planning 26% of CEOs will be leaving within the next three years 27% of organizations have a written succession plan 58% of charities have done an ED review in the past year Workbook Page 33 -34

Ensure Healthy Governance • Actively participate • Show up • Do your homework • Be respectful Only 20% of CEOs feel their board members are prepared to a great extent for meetings Workbook Page 35 -37

Develop Cultural Competency • Be engaged with your community • Cultivate an open and adaptive board • Actively learn about those who differ from you • Know yourself and face your own cultural and racial biases • Other biases can include gender, age, ability, socioeconomic, etc. Workbook Page 35

Encourage Effective Structure Have board committees doing board work Boards have an average of 4. 5 committees Workbook Page 36

Recruit & Orient Board Members • Be purposeful about board composition • Have a process • Seek or be a buddy to a new member 21% of CEOs rank recruitment practices among top three areas needing improvement. Workbook Page 37

Continuously Develop Board • Engage in active learning • Create a sense of team • Regularly conduct a board self-evaluation 45% of boards have conducted a self-assessment in the last 3 years Workbook Page 37

Discussion In small groups: • What does your organization have to celebrate? • How can your organization improve? • What are your next steps?

Thank you!