Board Member 101 The Basics of Great Boardsmanship What

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Board Member 101

• The Basics of Great Boardsmanship

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• What exactly is a foundation, and why have one,
  anyway?

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Foundation Defined

• A foundation is a not-for-profit organization
  (501 c 3) that raises funds to give to another
  organization.
• Other nonprofits typically raise funds for their
  own organizations, members and clients.

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Incorporate or not?

• Small foundations without much activity or money
  may choose not to incorporate.
• Incorporation protects board members.
• Nonprofit corporations are highly regulated.

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Not-for-profit vs. For profit Corporations

• Who benefits?
• Who owns the assets?

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Types of Nonprofits

• Mutual benefit
• Homeowners Association
• Fraternal or social
• Public benefit
• Charitable (501 c 3)
• Chambers of Commerce (501 c 6)
• Religious

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Foundations vs. Other Nonprofits

• The primary difference is in how funds are
  raised. Foundations do more fund development
  than fund-raising.
• No bake sales, carwashes, cookbooks
• Foundations tend not to get substantial
  government funding.

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California Community College Foundations

• Independent
• Auxiliary

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Foundation Documents

• Articles of Incorporation
• Bylaws
• Tax Exemption Letter
• Minutes
• Master Agreement
• Mission, Vision and Values
• Annual or Strategic Plan
• Committee Job Descriptions
• Officer and Board Member Job Descriptions

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Role vs. Responsibilities

• Role purpose, bottom line reason for existence
  
• Responsibilities tasks, the many activities that
  make up the job

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Role of Board vs. Role of Executive Director

• The Boards role is to govern.
• The Executive Directors role is to manage.

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Executive Directors Role

• The Executive Director is the Boards only
  employee.even where there is additional staff.
• The E.D. manages the organizations activities
  for the Board.
• The E.D. supervises and gives direction to the
  staff.

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Whos the E.D.s Boss?

• President of the College?
• President of the Foundation Board?
• Both?
• Who hires the E.D.?
• Who evaluates?
• Who writes the job description?
• Teamwork is essential!

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Boards Fiduciary Role

• Fiduciary means a high standard of behavior
  based on trust.
• Must uphold the faith and trust the public has
  placed in you.
• You are the trustee of donors money.
• You have the fiduciary duty of care, inquiry, and
  loyalty.

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Board Role What It Means To Govern

• Protect the public interest
• - Primary loyalty to public and client
• Achieve the organizations purpose
• - Fiduciary duty to oversee
• - Review and monitor operations
• - Analyze results
• - Plan for the future

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Responsibilities of the Board

• Develop and approve policies
• Develop and implement plans
• Assure that budget reflects priorities
• Engage in fund development
• Manage funds wisely

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Responsibilities of the Board

• Assist the E.D. in evaluating staff, if requested
• Establish and delegate tasks to committees
• Establish and monitor an investment portfolio
• Develop leadership for the Board

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Responsibilities of Individual Board Members

• Attend Board meetings regularly
• Come prepared
• Ask discerning questions
• Participate openly and constructively in
  discussion

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Responsibilities of Board Members

• Serve on at least one committee
• Serve where your talents and expertise can best
  be used
• Attend regularly
• Assume responsibility for some of the committees
  tasks (share the load!)

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Responsibilities of Board Members

• Give or get (or both!)
• Provide access to potential donors and sponsors.
• Help cultivate potential donors and sponsors.
• Set an example for potential donors by being a
  donor and/or sponsor yourself.

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Responsibilities of Board Members

• Promote the College and Foundation
• Tell the story of the college and foundation to
  friends, service clubs, local businesses, etc.
• Represent the foundation at public, charitable,
  and civic events.
• Attend college and foundation events.

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Board Presidents Responsibilities

• Conduct effective meetings
• Allow members to put items on the agenda.
• Enhance full discussion
• Allow the E.D. to make reports and
  recommendations.

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Executive Committees Responsibilities

• Meet to review agenda items and make
  recommendations to the Board
• Serve as a sounding board for the E.D.
• Take action between meetings when time is an issue

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Board Presidents Responsibilities

• Make certain all suggestions, challenges,
  criticisms are heard
• Build consensus
• Support the Executive Director
• Be a spokesperson for the college and foundation

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Levels of Responsibility

• Board of Trustees Evaluation level
• Foundation Board Governance level
• President/Executive Committee Direction level
• E.D. and Staff Management level
• Committees Action level (where the work gets
  done!)

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Conflicts of Interest / Ethics

• Board members have a legal obligation to disclose
  possible conflicts of interest
• Their own or another board members
• When voting on matters
• When there might be financial benefit to self or
  family members
• Self-dealing is illegal!

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Board Protocols

• Directors have no individual authority. They
  cannot act on behalf of the Board unless the
  Board delegates them the authority.
• Individual concerns should be directed to the
  Board president for remedy.

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Board Protocols

• The Board President and/or E.D. are usually
  designated as the spokesperson(s) for the
  Foundation.
• Board direction is passed on to the E.D. and
  staff by the Board President.

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Board Protocols

• Board and staff must work well together and
  accord each other the respect they wish for
  themselves.
• TEAMWORK IS ESSENTIAL!

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Job Descriptions Important!

• Director job description
• Officer job descriptions
• Samples in packet

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How to Get the Right People on the Board

• Assess board performance and characteristics
• Assess diversity
• Identify competencies needed
• Identify potential candidates
• Discuss potential candidates with Board
• Recruit
• Orientation of prospective members

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How to Retain Board Members

• Get them involved ASAP!
• Give recognition.
• Board training, board training, board training!
• NCCCF Conference
• Workshops
• Local training
• Annual planning retreat

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Effective Meetings

• Parliamentary procedure
• Ground rules/ protocols
• Agendas
• Minutes
• Asking discerning questions
• Engaging in the right dialogue
• Healthy debate

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Brown Act

• Auxiliary foundations must comply with the Brown
  Acts open-meeting rules.
• Agendas must be posted.
• Meetings must be open to the public (except for
  legal closed sessions).
• Public participation must be permitted.
• Board materials must be made available.
• Applies to any congregation of a majority of the
  members, formal or informal, unless no business
  is discussed.

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Effective Committees

• Committee or Task Force?
• Executive Committee
• Committee job descriptions
• Committee chair orientation
• Committee meetings
• Committee recommendations

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Your three most important jobs!

• To raise friends
• To raise money
• To provide oversight of donors gifts

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So What Kinds of Gifts are We Talking About?

• Cash or cash equivalents
• Gifts in Kind
• Time or services

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Leaving a Legacy

• Almost 85 of all gifts are given by individuals.
• Of that, almost 8 of those gifts are given via
  bequest.

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Restricted vs. Unrestricted Gifts

• UNRESTRICTED gifts are those given without being
  designated to any specific program or service.
• Nationally, only 12 of all gifts are
  UNRESTRICTED.
• That means that 88 of all gifts are RESTRICTED.
  You must use them as the donor intended!

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Annual Giving

• Gifts we can expect to receive year after year
  after year REGARDLESS of what other gifts the
  donor may give in any one year
• Generally unrestricted
• Typically under 500
• Often as a result of an annual giving campaign

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Corporate Gifts

• Partnerships are key
• Sponsorships
• Grants
• Matching Gifts
• BUT
• Only about 6 of all charitable gifts come from
  the corporate sector.

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Other Foundations

• Private Foundations account for about 12 of all
  gifts.
• Generally restricted.
• Very competitive--less than 11 of all proposals
  are funded.

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Major Gifts

• Usually in the thousands of dollars (or higher)
• Typically restricted.
• Generally come after long periods of cultivation.

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Endowments

• Endowments are gifts where the principal is
  invested and only the interest or some percentage
  of the endowment or interest is available for
  use.

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Now or Later?

• Current gifts are those where we have use of the
  funds NOW.
• Deferred gifts mean we dont have use of those
  funds until such time as some other action has
  occurred--generally a death.
• In either case, these gifts can be restricted or
  unrestricted.

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Planned Gifts

• Are planned because they are generally part of
  an estate or other financial plan.
• Includes gifts given through wills and bequests
  charitable trusts gift annuities.

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Capital Campaign

• A fundraising campaign designed to raise a lot of
  money in a specific time periodusually a million
  dollars or more
• Most often for capital projectsequipment,
  buildings, and so forth. Can include multiple
  types of gifts (small, large, deferred,
  restricted, unrestricted, corporate, foundation,
  etc.)

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How Are You Going To Do That?

• Successful fundraising is the right person
  asking the right prospect for the right amount of
  funding to help the right project at the right
  time in the right way.

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Establish Support Groups

• Subset of annual giving
• Support for a specific project or program such
  asFriends of??
• Giving Clubs such as a
• Presidents Circle

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Special Events

• VERY important as ways to involve and cultivate
  prospects.
• Events are typically friend-raisers, not
  fund-raisers.
• Examples
• Golf Tournament
• Gala
• Wine Auction

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By Fundraising

• Through Annual Campaigns
• Through Capital Campaigns
• Through Special Events
• Through Support Groups
• Through Seeking Corporate and Foundation Gifts
• Through Encouraging Major and Planned Gifts

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Beyond Fundraising

• Getting support is just part of the picture.
  Once you raise the money, you are responsible for
  MANAGING the funds
• Investing
• Conserving
• Spending

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Record Keeping

• You need to know about your donors and
  prospects. And you need to know what kinds of
  programs appeal to your donorsand which do not.
  

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Stewardship

• Because the best donor is an existing donor, you
  need to ensure that you have a strong stewardship
  program
• Thank your donors
• Give them recognition
• Involve them with the college
• Invite them to events

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How You Can Help

• Become trained in fund development strategies and
  techniques.
• Get comfortable with the ask.
• Help identify potential donors.
• Involve staffat the startwith any fundraising
  prospects youre thinking about.
• Commit to helping with a fundraising project of
  the foundation.

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College Presidents Role

• Needs to be an active member of the foundation
  board
• Needs to work with the E.D. to cultivate
  prospects
• Needs to be involved in the ask
• Needs to invite major donors to be his/her guest
  at special events

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College Presidents Role

• And, sometimes
• NEEDS TO LIGHT A FIRE UNDER THE FOUNDATION!

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Budget

• Whose responsibility is it to prepare the budget?
• Executive Director?
• Finance Committee?
• Treasurer?

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Budget

• What kind of budget report should be presented to
  the board?
• How often?
• Does the E.D. have authority to spend within
  budget limits?
• What is the treasurers (or finance chairs)
  role? Responsibilities?

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Substantiation Statements

• Every donor must receive a substantiation
  statement upon receipt of his/her donation.even
  for a dinner!
• What of the special event was a donation?
• Include Foundations Tax I.D. number, amount of
  gift, and advise to discuss with their own tax
  advisor.

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Audits

• Your college will require you to have an annual
  audit.
• Your finance committee can also do periodic
  internal audits to assure that proper financial
  records are being kept, and proper procedures
  followed.

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Investments Questions to Ask

• Who receives the account statements?
• Who reviews the statements each month to monitor
  investment performance?
• Is investment performance reported regularly to
  the Board of Trustees?
• Who holds the account advisors accountable?

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Investment Questions

• Is any of the money needed for daily operating
  expenses?
• If so, who approves?
• How much cash is needed to be disbursed on a
  monthly, quarterly, and yearly basis?
• Have tax benefits been discussed with your CPA
  with regard to paying money management fees,
  commission fees, and sales charges?

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Investment Questions

• Do you have an investment policy that addresses
  profit vs. risk?
• Where did funds originate?
• Is the donors original request being honored?
• Who authorizes trades, and is there a trading
  agreement?

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Investment Questions

• How often is the account rebalanced to meet
  investment objectives? If cash is withdrawn, does
  rebalancing occur? If so, how does this affect
  the money managers performance?
• How often does the finance committee (or
  investment committee) meet with the investment
  advisor?

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Open Forum and Conclusion

• What questions do you have?
• What stories to you have to share?
• Now..go raise lots of money for your college!
• GOOD LUCK!