Board of Directors Roles, Responsibilities and …Board of Directors Roles, Responsibilities and...
Transcript of Board of Directors Roles, Responsibilities and …Board of Directors Roles, Responsibilities and...
BoardofDirectorsRoles,Responsibilities
and501(c)(3)Operations
BillMieleADA
OrganizationandDevelopment
WashingtonSecretaryofStateOffice: sos.wa.gov
* WashingtonNonprofitHandbook* CharityandNonprofitBoardServiceinWAState* NonprofitFinanceandAccountingforBoardMembers* StatewideNonprofitResourceDirectory-501Commons
Resources
LittleLeagueInternationalOnLine:littleleague.org
* LittleLeagueOperatingPolicies* SampleLittleLeagueConstitution
EachCharteredLittleLeague:* LeagueConstitution* LeagueBylaws
Resources
LittleLeague-ThemanagementofthepropertyandaffairsofthelocalleagueshallbevestedintheBoardofDirectors.WAState-Theboardofdirectorsisresponsibleforsettingoverallprioritiesandensuringthatresourcesareusedwiselyinpursuitoftheorganization’smission.
RoleoftheBoard
“Acorporationexercisesitspowersthroughresolutionsandactsoftheboard.Generally,theboarddelegatestheday-to-dayresponsibilitiesofoperatingthecorporationtopaidorvolunteerstaffmembers.”Directorsmaynotactindividually.
TheRoleoftheBoard
Officersoperatetheorganizationonadaytodaybasis.President-”Presidesatleaguemeetingsandassumesfullresponsibilityfortheoperationofthelocalleague.”…...OtherofficersprimarilysupervisedbythePresident..Officersmayactindividually**
TheRoleofOfficers
Ideally,boardmembersshouldbepeoplewhoareinterestedingoverningtheorganizationnotinhands-onvolunteeractivities,andespecially,notinamanagementrole.
501Commons
AnIntrototheRoleoftheBoardFrom501Commons-BestPractices
LittleLeague:Officersareselectedfromamongelectedboardmembers.Allofficersmustbeboardmembers.
MostNonprofits:Boardmembersarenotofficersandofficersarenotboardmembers.
LittleLeagueBoardsVersus
MostNonprofitBoards
* Officer/BoardMemberroleconfusion
* Oversightfallsbythewayside-Finance!
* Meetingsbecomegroupmanagement
* LittleLeague/501crequirementsarenotmet
* Dysfunctionalbehaviorerupts
WhatcangoWrong?
* ChildSafety
* SoundFinances
* GameIntegrity
* LeagueGrowth
TheBigFourforBoards
AttheFirstTwoBODMeetings:
* ReviewBODandeachDirector’sresponsibility* ReviewOfficerjobdescriptions* AppointFinance/AuditandNominatingCommittee* DevelopBODoversightlistandreviewdates* DirectorscompleteBackgroundCheckandConflictofInterestDisclosureforms* Reviewandupdategoverningdocuments
OrganizingforaSuccessfulBoard
Thinklikeyourunacorporation—YouDo!* EmphasizeSoundFinance
1. BestPracticesFinancialControls2. NoLeagueDebitandCreditCards3. MonthlyAudits-AuditCommittee4. AnnualAudit-IndependentCPA5. FederalForm990-
SomeKeystoSuccessfulLeagueOperations
* Oneofficerposition=Oneperson..No“Co’s”…
* PayattentiontoRiskManagement* Becarefulhowyousetthequorumformembermeetings.* Smallerboardsworkbetter.* Takeselectionoffutureboardmembersseriously.
* Takeactionondirectors/officerswhoarenotperforming.* Donotaccommodatedisruptivebehavior.
SomekeystoSuccessfulLeagueOperations
BeforetheMeeting:* Decidewhowillattendthemeeting
* Setobjectivesformeetingandeachtopic
* Specificagendawithtimelimitspertopic
* Distributematerialsforreview/action* Assignpreparationworkandpresentations
BetterBoardMeetings
WrittenAgenda:* SeparateBODbusinessfromOfficerbusiness
* ListBODoversightitemsforthemeeting
* MonthlyFinancialreport* BriefBODtraining/informationsessiononleague
operations
BetterBoardMeetings
TheMeeting:* StayOnTopic* StayFocusedonObjectives* StayOnTime* Shutdown‘Monopolizers’* Stateactionforeachtopicdiscussed
BetterBoardMeetings
AftertheMeeting:DetailedMinutes* Attendance* Resultsofallvotes* ResultsofBODreviewitems* ActionsanddecisionstheBoard* Directionsissuedtoofficers* Itemsforaction/follow-up
BetterBoardMeetings
BoardofDirectorsNutsandBolts
“BoardmembersofWashingtonstatenonprofitorganizationsmustdischargetheirdutiesingoodfaith…...............andwiththecarethatanordinarilyprudentpersoninalikepositionwouldexerciseundersimilarcircumstances”
(CharityandNonprofitBoardServiceinWAState-QuickGuide)
DutiesandResponsibilitiesofEachBoardMember
Generally,eachboardmemberhasthreeduties:* DutyofCare* DutyofLoyalty* DutyofObedience
DutiesandResponsibilitiesofEachBoardMember
Exercisereasonablecarewhenheorshemakesadecisionasastewardoftheorganization.* ActivelyParticipateinmeetingsoftheboard* Beinformedonthebooks,recordsandoperations* Protectassets-protect,preserve,investandmanagethecorporation’s
assetsconsistentwiththeorganization’smissionandlegalrequirements.* Investigatewarningsorreportsofofficeroremployeetheftor
mismanagement.
DutyofCare
Aboardmembermustgiveundividedallegiancewhenmakingdecisionsaffectingtheorganization.Eachdirectormust:* ConflictofInterest-Avoidactualandpotentialconflictsofinterest.
* Confidentiality-Treatallinformationtheyreceiveorhaveaccessto,includingboardconversationsanddeliberations,asconfidential.
* CorporateOpportunity-Notdivertorganizationopportunitiesfor
personalgain.* LoansandSelf-dealing-nonprofitcorporationsmaynotmakealoantoa
boardmemberortheboardmember’sfamilymembers.Directorsmaynothaveanyadvantagesnotavailabletomembers.
DutyofLoyalty
EachDirectormust:
* ComplywiththeOrganization’sMission* ComplywiththeLaw
* ComplywithGoverningDocuments
DutyofObedience
BestPracticesRecommendation-aqualifiedcandidatefortheboardisanindividualwho:* Isamemberofyourleague* Isnotengagedinthepromotionoroperationofanyotherbaseballor
softballprogram* Isfullyappraisedofthedutiesandresponsibilitiesofadirector.* Iswillingtosignaboardofdirectorscommitmentletter* Isabletopassacriminalbackgroundcheck* Acknowledgesyourleague’sconflictofinterestpolicyinwritingandmakes
writtendisclosureofallpotentialconflictsofinterest.
BoardMemberQualifications
Framework* TheBoardestablishestheframeworkfortheorganizationandcreatesandupdatesthemission
statement.* Defineswhatbenefits(orendresults)theorganizationisprovidingtowhomandwhatitwillcostto
deliverthem?* Determineshoworganizationalperformancewillbemeasured.Direction* TheBoardsetsthedirectionfortheorganization.* Setsgoalsandapprovesandmonitorsthestrategicplan* Developsorganizationalpolicies,includingthepoliciesthatgovernhowtheboardwilloperate.
Accountability* TheBoardofDirectorsisresponsibleforthebehaviourandperformanceofboardmembersandthe
executive.* Establishesthecodeofethicsfortheboardandorganization,includingpoliciesrelatedtoprivate
inurementandconflictofinterest,andsetsthetonefororganizationalbehavior.* Monitorsfinancialandoperationalperformance.* Servesasthelastcourtofappealwithintheorganization.* Selectsanauditorandreceivestheauditreport.
GoodWillandSupport* TheBoardofDirectorsrepresentstheorganizationtotheoutsideworldandprovidessupportand
counseltotheexecutivedirector
Pointsfrom501Commons
Somepointsfrom501Commons
RoleoftheBoardBestPractices