I always try to stress that risk management is everyone’s job and there is no better organization to help us under stand risk and help us manage it that the Nonprofit Risk Management Center. Their annual Summit is coming up on September 18 – 20 in Seattle and I encourage you all to take a look at the programs they are offering this year. Members of The Nonprofit Center will get a discount on registration, and if you register before August 6 you will save even more. I look forward to seeing you there.

The first was a call from a woman who wanted to turn her business into a nonprofit. The work she does has a significant human service focus, so it made sense, especially since she wanted to seek grants to fund a building expansion.

When I pointed out to her that she would need to form a board of directors, she hesitated. I went on to clarify that, in a nonprofit organization, it is the board of directors that has the ultimate and legal responsibility for policy, management and financial oversight. That’s all she needed to hear. She was not at all interested in having others determine how the business would be run. It is a good thing that we had this conversation, because the proprietary nature of her approach simply would not work in the nonprofit sector.

There’s an agency in another part of the state that might be doing better if the founders had had this same conversation a few years ago. Their programs are very successful but there is a great deal of tension between the Executive Director (who founded the agency) and the board of directors. They, rightly so, are working to fulfill their responsibilities, but unfortunately the director views their work as undermining his control.

Even more unfortunately, this happens often in the nonprofit world. The alternative is for board and staff to share the vision and the commitment to make the agency a success. Both have their roles, and both are absolutely essential. Together they are the team that can make the vision reality.

The other event is that the board chair of a small, grassroots organization called The Nonprofit Center to ask some questions about how they should be operating. She had recently attended one of our board training sessions as a guest and had realized that her group was facing some big challenges.

Started several years ago, the group organizes social activities for people with disabilities. These events are run on a shoestring and the cost to attend is extremely low. The board members – there are ten – do all the work, and they happily make sure the events continue. They do this because they know how very important this social activity is for the people who attend.

Here is a nonprofit providing a much-needed service and doing so with the passion of real caring for the people they serve. That’s the ultimate best practice – it is this passion that fuels everything else a nonprofit does.

But the passion isn’t enough. All nonprofits are given a public trust. In exchange for certain exemptions (paying no taxes, for example) each nonprofit has a responsibility to assure that it is worthy of that trust by operating ethically, legally and effectively.

At the very least, nonprofits must have organizing documents and approvals. In this state that means incorporating as a nonprofit through the Secretary of State’s office, registering with the Charitable Solicitations Department of the Secretary of State’s office, registering (if required) with the local city or county office, and obtaining tax-exempt determination from the IRS, either independently or under the umbrella of another exempt organization.

These are the most basic best practices, yet there are many groups which consider themselves to be nonprofits who have not completed even these elementary steps. There are more. Financial records must be responsibly maintained and required reports submitted in a timely way. Each member of the board must fulfill their responsibilities of informed oversight and guidance while acting in an ethical way.

The organization mentioned above has taken the first steps, but where do they – and others like –them go from here? Should they raise lots of money to hire staff and become a more formal organization? Or continue as they are? Those answers will only come over time. But the answers will be the right ones if they look at the standards for nonprofits and work to meet them. Then everyone benefits –people served, donors, and all of us.

Many of you filled out evaluations at the conference, and we thank you for that. Now we’re hoping you will share with us the impact the conference sessions had on your role as a board member.

In addition, some of you who attended did not fill out an evaluation form, and we really would like to know what you thought of the conference.

Therefore, please take just a few minutes to complete an online, confidential survey. Once you do so, you will be given a code which you can use to be in a drawing for a free seminar from The Nonprofit Center.

The link to the survey is here. Thanks for your input.

Pathways to Nonprofit Excellence, by Paul C. Light

Pathways to Nonprofit Excellence “is the second major report of the Nonprofit Effectiveness Project, an endeavor of the Brookings Institution’s Center for Public Service.” It “offers substantive advice on both the characteristics of a well-tuned organization and where to begin the journey to improvement.”

The Nonprofit Center has a few copies of this book available at the special conference rate of $15 (a 20% discount) plus shipping (unless you want to pick it up).

This is a valuable resource for all board members. Call the Center at 253-272-5844 right away to get your copy.

Upcoming Governance Training and Resources

We are pleased to present a number of webinars produced by the Nonprofit Risk Management Center. The first of the new year will be: House of Sand or Foundation of Stone: The Board of Directors/Trustees on Wednesday, January 6, from 11 a.m. to Noon. (Location TBA) Click here for registration.

The first webinar of 2010 will examine methods for evaluating and addressing governance risks. The program will examine a wide range of topics including the composition of the board and best practices for empowering the board to discharge its legal responsibilities.

Another excellent resource for governance training is our partner, United Way of King County. They have a number of board-related training sessions scheduled for next year. Here’s the first:

Getting Your Board to Raise Money Joyfully by Susan Howlett will be offered on February 12 from 8:30 to 11:30 a.m. in Seattle. The cost is $40 per person ($35 for 2 or more). Click here for more information and registration.

The Washington Nonprofit Handbook is published!!! This outstanding resource for all board members is a comprehensive compilation of the laws and regulations that apply to nonprofits in Washington. It is available online by clicking here (opens a PDF document). Very shortly we will have a couple of copies of the publication in our library if you want to stop by and look at it. This book is a service of Washington Attorneys Assisting Community Organizations (WAACO)

If your board hasn’t “retreated” recently – say in the past two or more years – consider planning for one soon. Many boards begin their year with a retreat to focus their work for the coming months. Here are a few hints for a successful retreat:

• Form a retreat planning committee. At least one board officer and the Executive Director should be on this committee.
• Plan well in advance. The hope is that all or nearly all members will be able to attend; setting the date far enough ahead will make this possible.
• Find a suitable location. Ideally this is not someone’s home nor is it your regular meeting space. A new environment can stimulate new thinking.
• Engage a facilitator. While this will cost money, you will gain a great deal in focus, accomplishment and skilled involvement of all in critical discussions.
• Provide food and beverages. Fuel the bodies in the room and the minds will be more productive. Chocolate is also a very good idea!

If you’re thinking of having a retreat near the beginning of the year, now is the time to start planning. Give us a call at The Nonprofit Center (253-272-5844) or send us an email. We’d be delighted to help you make your next retreat a great success.