GuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times

Building the Best Board for Challenging Times July 24, 2012

Dick Walker, Managing Director, OAI John Bauser, Department Head, Strategy, OAI

Copyright © 2012 Orr Associates, Inc. All Rights Reserved.

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2 Copyright © 2012 Orr Associates, Inc. All Rights Reserved. Follow the Event on Twitter: #buildingboards

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Introductions

Dick Walker, Managing Director • More than 35 years of fundraising experience, primarily in the

independent school sector • Former VP of Corporate Giving at FBR Capital Markets • Serves on the boards of College for Every Student (former

chair), Mentors, Inc. and Princeton AlumniCorps

John Bauser, Department Head, Strategy • 35 years of executive management, fundraising and

advocacy experience • Works with clients on in strategic planning, development

assessments, feasibility studies and board development

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Agenda

• About You

• Optimal Board size and Committee structure

• Board recruitment, diversity and job descriptions

• Board engagement in fundraising

• Leadership succession and involvement of past Board members

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Revenue Size (n = 1199)

59% 29%

8% 1% 3%

Under $1 million

$1-10 million

$11-50 million

$51-100 million

Over $100 million

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How many people are on your development staff? (n = 1095)

21%

32%

36%

7% 4%

012-56-1011+

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Full staff size vs. development staff size? (n = 1095)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1-99 100-499 500-1500 1501+

Dev

elop

men

t Sta

ff Si

ze

Full Staff Size

11+6-102-510

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About You

785

357

272 201 201

152 109

74 74 54

Fundraising StrategicPlanning

Evaluatingthe Board's

Effectiveness

Educating thePublic

CommunityRelations

Evaluatingthe CEO

FinancialOversight

MonitoringPrograms

Setting Policy Serving as aSounding

Board

Please indicate the weakest areas for your Board (n = 987)

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Agenda

• About You





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Optimal Board Size

• Trend is toward smaller Boards • Smaller Boards tend to be more effective deliberative bodies

• Can impact fundraising capabilities – increased use of Advisory, Foundation and other board structures to bolster fundraising

• Big enough to get the work done

• Big enough to staff the Board’s committees • Keep the Board small and use non-Board members to fill out committees

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Committee Structure

• Trend is toward fewer standing committees

• Increased use of Task Forces • Clearly-defined objectives

• Limited lifespan

• Role of the Executive Committee • Meet between board meetings

• Emergency decisions

• Sounding board

• Coordinate board work

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Committee Structures

Internally-Focused • Program • Personnel • Finance • Governance

Externally-Focused • Fundraising • Marketing • Public Relations • Government Relations

Credit: David La Piana (Blue Avocado)

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Committee Structure Models

Traditional Model Various Standing

Committees

• Finance • Development • Building/Grounds • Programs • Audit • Governance • Marketing

Alternative Model Only Three Standing

Committees

• Internal • External • Governance

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Agenda

• About You





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Board Recruitment is a Year-Long Function

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Orient new Board - identify needs for the next year using your Board

profile

Determine renewals and retirements and have

conversations with both - identify candidates who meet identified

needs

Interview candidates using a job description - determine a “slate” to

be presented to the full Board

Approve the slate - inform new and renewed Board members/celebrate the service of those rotating off the

Board

Copyright © 2012 Orr Associates, Inc. All Rights Reserved. Follow the Event on Twitter: #buildingboards

Board Diversity

Profile current Board annually to determine sectors, skill sets and demographics

Sectors Skills Demographics Other Factors Defense Legal Age Nonprofit Board Experience

High Tech Finance & Accounting Gender Personal Wealth

Government Investment Race “Plays well with others”

Developers Human Resources Residence Corporate or foundation ties

Legal Government Relations Ties to other arts organizations

Education Marketing

Health Care IT

Banking Fundraising

Retail

Nonprofit

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Sample Board Profile

Name AffiliationFundraising

Capacity Residence EthnicitySector Skills/Expertise/Attributes AgeGenderLe

gal

High

Tech

Gove

rnm

ent

Finan

ce/B

ankin

gRe

al Es

tate

/Dev

elop

men

t

Ex-O

fficio

Non-

Prof

itEd

ucat

ion

Othe

r Bus

ines

sM

anag

emen

t/Hu

man

Res

ourc

es

Mar

ketin

g/PR

/Com

mun

icatio

ns

Finan

ce/In

vest

men

ts

Gov.

Affa

irs/R

elat

ions

/Adv

ocac

y

Fund

raisi

ngAr

ts In

tere

st/E

xper

tise

Entre

pren

eurs

hip

M F to 34 35-49 50-64 65+

X X X $$$ Florida X White XX X $$ Maryland X White X

X X $$ Maryland Black XX X X $$$$ Maryland X White X

X X $ Maryland X Asian XX X $$ Maryland X White X

X X $$$ Maryland X White XX X $$$ Maryland X Asian X

X X $$$$ Maryland X Latino XX X $$$$$ Maryland X White X

X X $$ Maryland X Black XX X $$$$ Maryland X White XX X X X $$ Maryland X White X

X X $$$$$ Maryland X White XX X $$$$ Maryland X Latino X

X X $$$$ Maryland X White XX X $$$ Maryland X White X

X X $$$ Maryland X Black XX $ Virginia X White X

X X $$$ Maryland X White XX X $$$ Maryland X White X

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Board Member Job Description

Your organization’s Board member job description should include expectations in all or most of the following categories:

• Advocacy for the organization and its mission

• Service/attendance

• Fundraising activity/Financial support

• Governance

• Knowledge of the organization

• Access to information and confidentiality

• Accountability

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Sample Governance Committee Timeline

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Agenda

• About You





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Board Engagement in Fundraising

• Give generously – Giving expectations

• Be an advocate – Tell your story

– Know the case for support (elevator speech)

• Participate in fundraising – Identification

– Cultivation

– Solicitation

– Stewardship

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Sample Board Commitment Form

Name: _________________________________________

My personal contribution:

1. I personally pledge $_____ to support our development goals and fulfill my individual commitment.

I will pay this: _______________________________________________

2. I will ___ sponsor and/or ___ purchase tickets to the annual event.

My fundraising activity:

I will participate in at least one of the following activities (indicate specifics below each category):

___ Identification of prospects

___ Cultivation of prospects

___ Solicitation of prospects

___ Stewardship

Signature: ___________________________________ Date:___________________________

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Be An Advocate

• Tell your own personal story related to the organization – How did you get involved?

– Why do you stay committed?

• Know the organization’s case for support – What are the fact and figures?

– How is philanthropic support used by the organization?

– How can people give?

• Have an “elevator speech” – Compose your own 30 second summary to be used when asked about

the organization

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The Four Activities of Fundraising

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Identification Current supporters, personal networks,

screening, rating, research

Cultivation Building the relationship

through communications, events, personal visits

Solicitation Asking the right person, at the right time, by the right asker, for the right amount

Stewardship Thanking, recognizing,

communicating, involving


Agenda

• About You





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Leadership Succession

• Think 2-3 years in advance • Always have at least two prospective candidates for all key Board

positions (i.e., Officers)

• Recruit new Board members with an eye for future leaders • Consider including prior Board leadership as a key objective for

prospective new members

• Consider naming a chair-elect one year in advance

• Use committee service to develop and gauge leadership potential • Especially Governance, Development, and Finance Committee service

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Involvement of Past Board Members

• Consider having an emeritus status for some retiring Board members – Set clear criteria for selection

• Plan regular opportunities for past Board members to stay engaged

• Use past Board members on committees as appropriate

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Questions? Feedback?

Dick Walker John Bauser

(202) 719-8082 (202) 719-8089

[email protected] [email protected]


Lauren Walinsky, GuideStar [email protected]

GuideStar Webinar (07/24/12) - Building the Best Board for Challenging Times

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