Page 2 - C&A's Nonprofit Board Guide

Introduction CONTENTS

As a Board member of a nonprofit, you are making a significant commitment
of time, energy, and resources. In accepting a position on the Board, you have
agreed to accept two basic responsibilities: support and governance. Each of MAKING THE DECISION TO ADDITIONAL BOARD
these require different skill sets and expertise. As a “supporter,” Board members 3 BECOME A BOARD MEMBER 27 RESPONSIBILITIES
fundraise, introduce contacts to the organization, and serve as ambassadors
to the community (both the public and private sectors). On the other hand,
the “governance” role involves protection of the public interest, serving as a BOARD MEMBER AGREEMENTS SOCIAL IMPACT
fiduciary, selecting and assessing the Executive Director, ensuring compliance 6 29
with legal and tax requirements, and evaluating the organization’s work. All
of this needs to be done in accordance with the organization’s mission, which
remains the underlying compass that should guide your actions. 7 THREE LEGAL DUTIES OF THE 31 UNDERSTANDING FINANCIAL
It is important for you to understand the requirements that come with your BOARD OF DIRECTORS REPORTING FOR A BOARD
MEMBER
acceptance of a Board position. This guide will provide some insight to you on
how to be a more effective Board member. This includes understanding your 9 TOP 10 RESPONSIBILITIES OF 35 WHAT THE BOARD OF
duties, your role versus the role of the Executive Director, the various committees NONPROFIT BOARD MEMBERS DIRECTORS SHOULD KNOW
that may exist within your organization, legislation such as NYPMIFA, how to ABOUT IRS FORM 990
read the information provided to you, and more. NONPROFIT BOARD POLICIES & TOO MANY NONPROFITS, TOO
The environment that nonprofits operate in is getting tougher, with: increased 11 PROCEDURES 39 LITTLE M&A
government regulations and audits; more competition for fundraised dollars,
as donors look for increased social return on investments; and a change
in focus in measuring nonprofit effectiveness from fiscal measurements to 14 BOARD & EXECUTIVE DIRECTOR 42 NYPMIFA: WHAT IS IT AND
operational measurements. Outputs have given way to outcomes, with a need for ROLES WHAT DOES IT MEAN FOR ME?
organizations to measure their social impacts, the deciding factor.
Take the time to read through this guide, and share it with other Board members. BOARD POSITIONS & FUNDRAISING: A DIFFERENT
If you have any questions about any of the material within this guide, or if we 17 RESPONSIBILITIES 45 APPROACH
can be any assistance to you or your agency, please do not hesitate to contact us.
Our many nonprofit specialists will be more than happy to answer any questions
you might have. 21 BOARD COMMITTEES 47 EFFECTIVE BOARD MEETINGS:
Thank you for making a difference in the nonprofit sector. HOW DO YOU ENSURE YOUR
BOARD REMAINS EFFECTIVE?

23 REMOVING TROUBLESOME 48 SUCCESSION PLANNING FOR
Ken Cerini, CPA, CFP, FABFA BOARD MEMBERS NONPROFIT BOARDS
Managing Partner
25 RELATED PARTY
TRANSACTIONS

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