How are you turning your agency's weaknesses into strengths?

The Cracked Pot

By John Greco
Originally published on June 4, 2012
Re-posted with permission from johnponders blog
chinese woman1A Chinese woman had two large pots, each hung on the ends of a pole which she carried across her neck.. One of the pots had a crack in it while the other pot was perfect and always delivered a full portion of water.
At the end of the long walks from the stream to the house, the cracked pot arrived only half full..
For a full two years this went on daily, with the woman bringing home only one and a half pots of water..
Of course, the perfect pot was proud of its accomplishments. But the poor cracked pot was ashamed of its own imperfection, and miserable that it could only do half of what it had been made to do.
After two years of what it perceived to be bitter failure, it spoke to the woman one day by the stream.
‘I am ashamed of myself, because this crack in my side causes water to leak out all the way back to your house.’
The old woman smiled, ‘Did you notice that there are flowers on your side of the path, but not on the other pot’s side?’ ‘That’s because I have always known about your flaw, so I planted flower seeds on your side of the path, and every day while we walk back, you water them.’
For two years I have been able to pick these beautiful flowers to decorate the table. Without you being just the way you are, there would not be this beauty to grace the house.”
[Author unknown, but greatly appreciated!  If you or anyone you know has a proprietary interest in this story please authenticate and I will be happy to credit, or remove, as appropriate.]


I used to have an old, decrepit picket fence along the property line behind my garage.  It was in disrepair.  As I went about working to remove it, I couldn’t bring myself to just throw all the pickets in the trash.
I used some of the pickets to hide my garbage can and recycling container staged on the side of the house.
Last year, I used most of the rest of the pickets to create an old, arbor-like, shabby-chic backdrop for my pond (see picture, right).  Looks like its been there a hundred years, but it’s perfect, for now, to support the cardinal vine that will hug it, twist and turn through it; and when in bloom, beckon the hummingbirds…
My wife and I have had a wicker table almost since we’ve been married (our 34 year anniversary was yesterday) and it also has deteriorated (the wicker table;  not the marriage!) to the point that it no longer can be depended on to safely serve as a table.  Last weekend, I cut the legs off, and placed the wicker top in a spot in the garden, with pea gravel under and around (see picture below).  I’ve still work to do to secure it, but it already has piqued some visual interest to the previously nondescript corner…

And now I’m pondering using the wicker table legs to intersperse among the pond edge bamboo stakes!
I have, as you might have surmised, a bit of a compulsion to reuse things.  To repurpose.  To extend the utility of the unique character of things that long have seen a better day.
The Chinese woman took a pot that didn’t quite work well for it’s intended purpose, and she made it work well for another — shall we say higher? — purpose.  It could not quench her thirst as much as it had before, but perhaps we can say that it is satisfying her thirst for something different.
But there is a cost.  Her labor is returning 25% less water for her and her family using that cracked pot.
And soon I will need to redo the picket screening around my garbage cans.
And the shabby chic picket back drop surely won’t last as long as a structure made from new wood would…
Utility, and return on investment — as beauty — is in the eye of the beholder.
The author of the story above gave the cracked pot the ability to voice its discouragement and shame over its lost capability.  I am realizing now that that storytelling technique gave the author the opportunity to have the Chinese woman talk to the cracked pot, pointing out the critical contribution the pot was playing in beautifying her path, and her home.
I imagine that cracked pot felt pretty good after hearing that…
I will be listening to my pickets; and I will be listening to my wicker table pieces-parts; and I will tell them how much I appreciate their new contribution; I will tell them how they are satisfying my thirst for something, well, different.
And I will leave it to you (at least for now) to make the more explicit connections of this story, and my story, to our real worlds — for they are many, and varied, and meaningful.
For we will all be — if we’re not already — cracked pots.
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Who is showing up to your non-profit board meetings?

Decision are Made by those who Show Up

By Dani Robbins
Re-published with permission from nonprofit evolution blog
showing upMy community had a paltry 10% of eligible voters turn out to vote on Election Day. My neighbor said that any vote that didn’t have at least 40% of the eligible voters voting should be thrown out. But, of course and for good reason, it doesn’t work like that. Elections – and most other things – are decided by those who show up.
Now you may be thinking: “That’s nice Dani, but this is a nonprofit blog. What’s this got to do with non profits?” Everything; it works the same way for agencies. Many states ban proxy voting and require email votes to be 100% unanimous. Assuming you have a quorum, the decisions made by the board will, primarily, all be made by those in the room.
That means it not only matters who you elect to serve as Board members, it matters which of them chose to show up to meetings. It’s hard enough to figure out how a large group of smart people are going to vote; it’s even harder if you don’t know who will be in the room. As such, you need to know who’s planning to attend every meeting.
Good Execs do their homework before the meeting and usually know how people are going to vote before the meeting begins……which doesn’t ensure they will do so.” (Board Meetings Gone Wrong) Even when you do your homework, and think you know how they will vote, a parking lot conversation can change someone’s mind.
The foundation for ensuring you have the right people in the room starts long before a board meeting is scheduled. It starts and also ends with the Board Development Committee.
When you are recruiting new prospects, unless you are willing to change the meeting time, those who tell you they cannot come to the meetings should not be considered as board members. Most agencies already carry one or two board members who consistently miss meetings; don’t add to that count.
The agenda that is set should also reflect, to some degree, the behavior of those expected to be in the room. This is most applicable to consent agendas. When you consider if a consent agenda is right for your board, consider the board members who most often attend. Do they typically read materials in advance or in the room? If they read them in advance, consent agendas can allow more time for robust generative discussions. If they read them in the room, they may not have time to read all the materials and may be voting on things about which they are not entirely clear. If that is the case, consent agendas can create issues of liability for your agency.
If you don’t have enough board members show up, the ones that do will not have their votes counted if you do not have a quorum. Quorum issues are the best indicators of disengaged board. As mentioned in Engaging the BoardIf you have consistent issues with having enough Board members in the room to make decisions, I recommend you take a look at how your board was built and how it is being developed.
Finally, it behooves you to consider removing disruptive or disengaged Board members. For instructions on how, click here. It is a difficult option to consider, but each of our roles in nonprofit leadership requires us to do what’s best for the organization. If the work of the board becomes focused on defending or covering for an inappropriate board member, other more relevant work is not being accomplished.
We can’t always control who shows up, but we can control who is invited to serve.  If we build the board intentionally and thoughtfully, it is far more likely that those who show up have the capacity, the wisdom and the experience to appropriately govern our organizations, and our organizations have the resources, impact and reach to change our world.
What’s been your experience? As always, I welcome your insight, feedback and experience. Please share your ideas or suggestions for blog topics and consider hitting the follow button to enter your email. A rising tide raises all boats.
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What is your non-profit agency doing in virtual environments like Second Life?

To Infinity and Beyond: Non-Profits setting up shop in Second Life

By Rose Reinert
Guest blogger
rose1Happy Monday and welcome back to our weekly blog series! As we dig deeper into Lon Safko’s book, “The Social Media Bible,” we explore more unique forms of social media. In chapter fifteen, “Virtual Worlds- Real Impact,” cracks open a unique and impactful way to engage supporters, volunteers and build community.
First, to understand the basics, a virtual world is an Internet-based simulated environment. Second Life, founded by Philip Rosedale, launched on June 23, 2003. This virtual world includes avatars and was designed to encourage personal, one-on-one communication. The NonProfit Commons project (NPC), managed by TechSoup Global, is a virtual community of practice for non-profits to explore the opportunities and benefits of Second Life.
This chapter was beyond challenging for me.
Virtual worlds are beyond my normal realm. Despite this challenge, in my exploration, I found some cool ways virtual worlds are being utilized by our non-profit sector.
American Cancer Society Relay for Life
Second City has hosted the American Cancer Society Relay for Life since 2005 and has raised over $650,000. Supporters can choose an avatar and complete the race. This community also has engaged more than 100 cancer survivors.
WeeWorld: Partnership for a Drug Free America
The Partnership for a Drug Free America (PDFA) has just announced the successful completion of its WeeWorld campaign to educate young people about substance abuse prevention and the consequences of drug and alcohol abuse. With over 55 million registered users, the showpiece of this initiative was the real-life recovering teen JT whose WeeMee avatar reached 20,000 friends by the end of the campaign.
These are just a few examples! Explore more at Second City and share some of your experiences.
Here are a few additional links you may want to explore:

How have you seen virtual worlds utilized n the non-profit sector? How could virtual worlds be utilized to engage donors or volunteers?
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How risk adverse is your non-profit organization?

Trust the Break

By John Greco
Originally published on July 9, 2012
Re-posted with permission from johnponders blog
elevatorThousands of spectators flooded into the Crystal Palace Exposition in New York City.
It was 1853.
Elisha Graves Otis stood on an elevating platform. As it rose up high above the crowd, Otis took out a knife; it became immediately apparent to everyone that he intended to cut the cable!
The crowd of people feared the same results that they had read about or seen: a quick plunge, to a likely death, or serious injury…
But not this time.
With the cable fully severed, Elisha Otis’s platform did not plummet.  Otis’s safety brake produced a slight drop, until the spring kicked out into the guide rails.  Otis is said to have shouted, “All safe, gentleman, all safe.
Otis sold 42 freight elevators in the two years after his exposition debut.
After his death in 1861, Otis’s company was left to his two sons; by 1873, they had sold over two thousand elevators worldwide.
Adapted from the Otis Elevator Blog


How risk averse are you?
I find it hard to answer that question.  I hedge; it depends.  I’m not sure I would have been an early rider of Otis’s elevator.
That’s a lie, really.  I am sure; I would definitely not have been.  No way!
But when it comes to organizational change, I’m pretty much all in.
I’m afraid that inclination hasn’t particularly helped me over the back half of my career as I’ve pitched changes in structure, policy, process, and culture…  I can paint a pretty compelling picture of the benefits, and I do alright projecting the costs.
But I under appreciate the downside risks.  I, consequently, short change the risk mitigation section of the proposal.  In fact, sometimes I omit it entirely.
The tenor of the responses are wide-ranging, but the result is disturbingly the same.  They don’t relish the ride I’m pitching.  So, no go.  They’re not on board.
I think they were all looking for Otis’s brake.
And who could blame them?  I wouldn’t have went up with Otis … and I’m sure I would have wrestled him down to the platform once I saw that knife come out …
Fear is a powerful emotion.  It stops us in our tracks.  We don’t go forward.
Or up.
Elisha Graves Otis did not invent the elevator.  He invented the elevator brake.
But the brake wasn’t his only innovation.  He innovated in influencing.  He created quite the spectacle to demonstrate the brake’s effectiveness.
Nothing to fear.
The sky is now the limit.
But we needed to trust that brake first.
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Dear Non-Profit President / CEO / Executive Director,

open letterMy online friend, Marc Pitman is hosting this month’s Nonprofit Blog Carnival and asks his fellow non-profit bloggers to write an open letter to executive directors in honor of President’s Day.  For those of you who don’t know of Marc, he is well-known to friends and business associates as “The Fundraising Coach“. As the coach describes in his call for submissions post, he runs into CEOs who think hiring a development director gets them out of their fundraising responsibilities.
I have run into the same situation many times, and this open letter is my President’s Day gift to those executive directors.

Dear Non-Profit President / CEO / Executive Director:
Congratulations on making an important investment in your agency’s resource development program. Hiring the right fundraising professional should help take you to bigger and better things. You’re embarking on what is surely a fun and exciting organizational journey. Enjoy it!
However, the road ahead is full of potholes and obstacles.
First, please know that you can never abdicate your role as the agency’s “Chief Development Officer“. Sure, you’ve just hired someone to take on that role, but Harry Truman said it best when he said “The buck stops here.” Your fundraising role may look different now, but you will likely still be involved in some capacity with:

  • Cultivating prospects & stewarding donors
  • Soliciting donors
  • Supporting fundraising volunteers

Your focus may shift from more annual fund activities involving pledge drives and special events and move more towards major gifts and cultivating long-term donor relationships.
What is most obvious is that you’re role as “fundraising visionary” is more important now than ever before.
Why? Simply because there are more chef in the kitchen.
As you open your executive director toolbox, you will find many different tools that you need to become proficient at using, including:

  • written resource development plan
  • fundraising dashboards and scorecards
  • donor database (or CRM)
  • staff and volunteer job descriptions

However, one of the most powerful tools that you need to master is the annual performance plan for your new employee — the development director.
If I’ve seen it once, I’ve seen it too many times, where an executive director fails to provide the newly hired fundraising professional with a written performance plan. Instead, they simply say: “Go raise some money. Chop-Chop!
Please don’t be one of those Non-Profit Presidents. You are better than that. Besides, not providing your new employee with a written annual performance plan is akin to setting them up for failure. How? Why? Because they don’t know what success looks like at the end of the year. They aren’t mind readers and don’t know what you’ll be grading them on other than raw dollars and cents.
For those of you who are new to annual performance plans, here are a few tips:

  • Make sure each objective is measurable
  • Make it clear what it will take for the employee to go from a “meets expectation” to “exceeds expectation” for each objective
  • Link the performance plan back to the agency’s written resource development plan or strategic plan
  • Ask for feedback and input from your new fundraising partner and make any necessary adjustments

Finally, once you’ve cemented a performance plan in place, sit down with the new development director and engage in a clear discussion around what your new role could and should be with regard to resource development and fundraising.
Well, I hope your President’s Day was awesome and best of luck on your fundraising journey.
As always, I raise my glass to you and say, “Here’s to your health!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Making the case for setting a clear shared vision

Forward!

By John Greco
Originally published on June 14, 2012
Re-posted with permission from johnponders blog
monk_benedictine_100If you cry “Forward!” you must make clear the direction in which to go.  Don’t you see that if you fail to do that and simply call out the word to a monk and a revolutionary, they will go in precisely the opposite directions.
— Anton Chekov, Russian dramatist


To make sense of this quote, we need to understand monks and revolutionaries.
I imagine what Chekov had in mind when citing a monk is someone who lives within an established routine, with not a lot of change or variance, and with a reverence for the past.  I enhance that image further by thinking that monks have so much reverence for the past that they keep it alive in the present.
I imagine what Chekov had in mind when referencing a revolutionary is very different — strong intention, with strong action, to break from the current status quo, and create something radically new.  I enhance that image further by thinking that revolutionaries have such an appetite for immediate change that they want to pull the future into the present.
Forward, to a monk, means no change is necessary nor anticipated.
Forward, to a revolutonary, means change is assumed and must happen NOW!
It is easy to see, then, that “forward” to a monk might mean committing to a strict adherence to the practices and traditions of the past.  And to a revolutionary, ”forward” might mean the accelerated establishment of new and different policies and practices, NOW!
There is likely a monk-like colleague and a revolutionary-like colleague sitting to the left and right of you.  Same, sitting on either side of each of them.
And which way do you lean?
The implications for leaders are considerable.
We need to be explicit with plans and strategies and visions.   What is changing?  What isn’t changing?  We might see ways to bridge the gap; we can speak to how planned changes actually honor the past (which will get the attention of the monks) while speaking to the promise of changes in short order (which will pique the interest of the revolutionaries).
Just think of what this means vis-à-vis mixed generational workforces.  And vis-à-vis rapid technological advancement.  And social change.
Oh boy!
So; not unlike the high-wire act of change, calibrating and recalibrating the messaging is important; if the monks have inordinate influence, marginalization, irrelevance, and extinction are real risks.  If revolutionaries hold sway, chaos and confusion disable.
In either scenario, there is not progress.
There is no forward.
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Engaging others with webinars and online radio

Trainings, virtual meetings, advocacy!

By Rose Reinert
Guest blogger
So, in the first 13 chapters of Lon Safko’s book — The Social Media Bible — he establishes that social media is about so much more than just Facebook, Twitter, LinkedIn, etc.  Safko continues expanding our understanding in chapter 14 when he writes about webinars and online radio.
Of course, webinars are seminars and trainings conducted over the internet; whereas, online radio is an audio program (or music) transmitted over the internet.
One of the pillars of a good board development / board governance plan is a training program. Unfortunately, this is a lot easier said than done.
When I was an executive director, I tried really hard to get board members to attend conferences. I brought trainers to town, and I even tried to integrate small training nuggets into our board meetings. The reality is that board volunteers are busy people and breaking away is always difficult.
Thanks to the magic of social media (and specifically webinars and online radio), non-profit professionals now have additional tools in their toolbox to engage board volunteers and other stakeholder groups.
Webinars
webinarAt my previous agency, their national office made tremendous investments in webinars (aka distance learning). The following are just a few of the training titles I saw them offering:

  • Creating a Committee Work Plan
  • Holiday Mailings
  • Implementing a Resource Development Plan
  • Managing Donor Relationships: Using a Donor Database
  • Board Development 101
  • How to Create a Board Development Plan

If you really wanted, there is nothing stopping you from designing your own trainings and using webinar services to facilitate those distance learning events.
In addition to trainings, I also see some agencies use tools like GoToMeeting and Adobe Connect combined with conference call technology to host virtual meetings.
In my experience, there are some important things to keep in mind when it comes to webinars:

  1. Participants have many distractions from the home and office (e.g. email, phone calls, interruptions), and it is easy to lose your audience if your presentation isn’t highly interactive with lots of questions, polls and surveys. Ask questions of participants in advance of the webinar and answer them during the webinar.
  2. Distance learning is not the same as in-person trainings and meetings. Keep these sessions short and sweet (e.g. 30 to 45 minutes).
  3. Participants need to be reminded to show up because (for whatever reason) these virtual events are easier to not show up for compared to real-time events.

If you are looking for FREE webinars or pre-recorded webinars to use with your board members and fundraising volunteers, check out some of these resources:

Online radio
online radioMany people have discovered Slacker radio, but online radio isn’t just about streaming music while you workout.
Many decades ago, radio was a mainstay in our grandparent’s living rooms (before the advent of television). Once television squeezed radios out of the picture, many of us just listened in our cars as we drove from place-to-place.
Online radio has liberated radio from our cars and enables music and talk shows to be heard on our work and home computers. This, of course, opens up lots of possibilities for non-profit organizations.
The most obvious possibility was already cover by Erik Anderson on October 21, 2013 right here on the DonorDreams blog in a post titled “Have you discovered non-profit radio yet?“. In that post, Erik introduced us to the Tony Martignetti Nonprofit Radio.
If you haven’t checked out Tony’s online radio show about the non-profit sector yet, it is definitely worth it.
Of course, your non-profit organization can start its own online radio station. Why? Because it is another opportunity to get your message out there. It is marketing. It is prospect cultivation. It is donor stewardship. It can even be something you integrate into your agency’s programming with clients.
If you want to learn more, I suggest you go pick-up a copy of Lon Safko’s book — The Social Media Bible.
The Houston Chronicle also published an online article with a number of excellent links relevant to this topic. Click here to check it out.
How is your agency using webinars and online radio? Please share your thoughts and experiences in the comment box below.
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What is distracting you and impacting your non-profit agency?

X the Concerns

By John Greco
Originally published on June 25, 2012
Re-posted with permission from johnponders blog
Pen-paperIn this post I will be sharing one of the most profound and impactful lessons of my life.
But for you to really relate, I need you to participate.
So please go get a blank piece of paper and a pen.
Oh come on!  Painless, really.
Okay.  Draw as big a circle as you can on the page.
Now think about everything you are concerned about.  Everything: your aging mom, the near term milestone on that project, the risk of the company losing a key leader, the European financial crisis, etc.  Make small x’s inside the circle to represent each of those concerns.
You are now looking at your circle of concern.  Mark it as such.
Imagine that you rearrange your concerns, so that the ones that you really can’t do anything about (e.g. the European financial crisis; the flight risk of that key leader) move toward the boundary of the circle.  The concerns you believe you can do at least something about move toward the center of the circle.
Now draw a second, smaller, circle, inside the larger one, around those concerns that you believe you can do something about.
You are now looking at your circle of influence.  Mark it as such!
A common reaction, at this point, is that there are way more concerns outside your circle of influence than inside it.  Or, that the concerns that are outside your circle of influence are weightier and more consequential than those inside your circle of concern.
Disheartening, isn’t it?
In reality it is more than disheartening.  It is distracting.  And that distraction has consequences.
When we focus on things that we really can’t do anything about, we are actually expending valuable time and energy that could have been used to work on those things that are inside your circle of influence, those concerns that you really could do something about.
What really ends up happening is your circle of influence shrinks.
Yep, I said that right; when we worry, stress out, and become fixated or paralyzed by the things that we are concerned about but can’t really do anything about, we miss the opportunity to influence one or more of those things inside the smaller influence circle.  Let’s say you’ve been stressin’ about Greece pulling out of the Eurozone and Spain defaulting on its debt and Italy’s next and geezus what’s going to happen to my 401K! … and you miss the opportunity to work on that project milestone.  It’s too late to recover.  You are going to have to report that you missed that milestone, and the deliverable target date is now at risk.
That concern, in effect, just drifted outside your circle of influence.  Your circle of influence just shrunk.
Not a good thing.
But there’s more to this exercise, and if you quit now, you will only have seen the downside.  There is considerable upside.  Trust me.
Let’s say we don’t get distracted by those concerns that we know we can’t do anything about.  Let’s say, instead of obsessing about Greece and Spain and Italy and your 401K you use that time and energy to set up some coaching from a trusted colleague on the near term project milestone.  As a result, she actually helps you quite a bit; you subsequently are in much better shape to report on that milestone.  And when you make that report, it is well-received and your skill and effort is recognized.
Odds are pretty good that your circle of influence just got larger.
Saywhatnow?
You’re thinking you may have less of a concern for that project, or even no concern at all anymore, but how can I say your circle of influence got larger?
Because it’s at least possible that that flight risk leader took notice of the way you recovered that project, and wants to talk about how you did it, and how might you help him… and that previous “nothing you can do” concern just slid into your circle of influence.
That’s quite a stretch you say?  Okay, another possibility:  because you are not so much concerned about the project now, you can devote some time and energy to researching twice a week home nursing visits for your mom.  That concern just slid into your circle of influence…
Look, these are hypotheticals.  I’m trying to bring to life those x’s on a piece of paper; but I don’t have to try that hard, right?  You know ‘em…
… and you know what this is all about.
Maybe you don’t need to be reminded, but I do —
John!  Don’t worry about things you have no control over and can’t do anything about!  Do something about the things you can do something about!  You can influence!
That’s the impactful, easy-to-understand-but-difficult-to-sustain-in-real-life part of the lesson.
Here’s the profound part — The more I influence, the more I can influence.
Yes, I do worry about the Eurozone financial crisis.  Can’t really do anything about that particular concern.
Yet!
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What does your agency's committee system look like?

Board Work via Board Committees

By Dani Robbins
Re-published with permission from nonprofit evolution blog
committee1Appointed or elected community leaders govern an organization. As outlined in my favorite Board book Governance as Leadership  and summarized in The Role of the Board, the Fiduciary Mode is where governance begins for all boards and ends for too many.  I encourage you to also explore the Strategic and Generative Modes of Governance, which will greatly improve your board’s engagement, and also their enjoyment.
At a minimum, governance includes:

  • Setting the Mission, Vision and Strategic Plan
  • Hiring, Supporting and Evaluating the Executive Director
  • Acting as the Fiduciary Responsible Agent
  • Raising Money and
  • Setting Policy

Committees are how the work of the board gets done. The committees, their structure and definitions will be outlined in your organization’s by-laws, which in Ohio are called Code of Regulations.
The by-laws will also dictate if committee chairs and committee members must be board members. I recommend that the chairs be board members but that committee membership not be limited to only board members. Committee work is a great way to build the bench of a board, see how someone works and it they are a good fit for a future board position. Most organizations have a requirement that Board members serve on at least one committee.
Committee members are responsible to the full Board for the research, work, framing of the issues and recommendation in their assigned area.  There are a minimum of three committees I recommend as “must haves,” which are Board Development, Resource Development, and Finance Committee.
There is often also some version of an Executive Committee and there may be other committees as well. Let’s review each.
Executive Committee
The Executive Committee is usually the four Officers (President, Vice-President, Treasurer and Secretary of the Board) or the Officers plus the Committee Chairs.  Less often, Executive Committees have members at large.
Executive Committees can sometimes make decisions in lieu of the full board. This will be clearly stated in the by-laws. I generally recommend against this. In fact, other that in emergency situations when I think they’re critical, I generally recommend against the Executive Committee meeting on a regular basis.
Powerful Executive Committees tend to disengage the remaining board members. It allows the few to operate without the whole. Anything that contributes to board member disengagement works against the agency’s success and should be avoided.
Finance Committee
committee2The Finance Committee, chaired by Treasurer, works with the appropriate staff in examining the financial reports, understanding and monitoring the financial condition of the organization and preparing the annual budget. The Treasurer presents the monthly financial statements to the Board at each board meeting. This committee also selects an audit firm each year and reviews the audit plan, audit and 990, which should be signed by the Treasurer prior to submission.
As it is sometimes considered a conflict that the committee that monitors the books also manages the auditor selection, it is considered a best practice to have a separate audit committee.  If this is not feasible for your organization and as auditing firms are independent of the agency, this conflict can be mitigated by bidding out your audit and changing your auditor every few years.
Resource Development Committee
The Resource Development Committee works with the CEO, the senior development staff, if there is one, and the Board of Directors in developing strategies to identify and secure needed resources and funding to support the operations of the organization. The Committee is responsible for creating and executing a plan to raise money. The full Board is responsible for introducing their network to the organization, attending events, financially supporting the organization and encouraging other to do as well.
Board Development Committee
The Board Development Committee is concerned with identification of new Board members and the development of the future leadership of the Board. The Board Development Committee helps develop an effective Board through its two main functions:
Board Building:  A diverse board of directors (thought, skill, race, faith, ability, orientation, age, and gender) that is passionate about the mission of the organization is created through a Board Building process.
Board Education:  Board members will fully understand and effectively fulfill their commitments to the Board of Directors when a comprehensive orientation, continuing education, annual evaluation and recognition process is in place.
With the exception of a functioning Executive Committee, the Board Development Committee is usually the most powerful committee of the Board.  It is often the only committee that you can’t just volunteer for but must be invited to join.
Other Committees
Some Boards also have program committee, human resource committees and a variety of other committees.
The Program Committee is responsible for the program side of the Board’s fiduciary responsibility. They focus on how the programs tie to the organization’s mission, what they impact, how that impact is measured and the number of people who are served in those programs.
The Human Resource Committee is responsible for the development and recommendation of the personnel and other relevant policies, the creation of a salary adjustment plan and the framework for the CEOs evaluation.
A Word of Caution
committee3I recommend caution when creating committees to do the work of staff. It gets very confusing as to who is responsible for what and responsible to whom. If Board members are acting in staff roles, the Executive Director retains the authority for decision-making. If the Board members are operating within the scope of their roles, the Board has the authority for decision-making. Conversations had in advance can help you avoid role confusion and the overstepping of boundaries.
Do you agree with my three “must have” committees?  What else do you recommend? What is your experience with committee work? As always, I welcome your insight, feedback and experience.
dani sig

What is your agency's case for doing some planning?

planningAs someone with two degrees in planning, I catch myself all the time with my non-profit clients explaining that the solution to their problems is that they need a plan. It might be a strategic plan, resource development plan, or board development plan . . . but oftentimes I am amazed at how many times failing non-profit agencies just haven’t invested in creating plans.  I mean, come on folks! Who hasn’t heard the old expression, “If you fail to plan, then you plan to fail“?
In recent years, my point of view around planning has evolved slightly. I now believe there is a time and place for planning. When there is too much chaos in the external environment or too much internal crisis or turnover, planning is at best a wasteful exercise and at worst can contribute to the problems at hand.
Of course, I still bristle when I hear board members say something like:

“I don’t want my agency engaged in planning. In the end, all that happens is the plan gets put on the shelf to collect dust. We need less planning and more doing!”

When I hear statements like this, it is usually indicative of:

  • an agency without a culture of planning
  • staff without an understanding of how to engage a board
  • board volunteers without an understanding of implementation tools
  • a board who doesn’t manage or evaluate its staff
  • an agency that is either standing still (best case scenario) or in crisis (worst cast scenario)

When trying to make the case for engaging in some sort of planning activity to a board of directors, I typically talk about “roles and responsibilities” of the board of directors. As you might imagine, this approach is usually met with yawns and eye rolling.
However, I recently found a blog post by Nell Edgington titled “5 Ways Great Strategy Can Transform a Nonprofit” while clicking around on a LinkedIn group dedicated to strategic planning for non-profit organizations. It was in that post I think Nell makes a much better case for planning that might be better received by resistant boards.
Here is what she says:

“People and organizations that make large gifts to a nonprofit are in effect investing in the future of that organization. And if you can’t articulate your future plans in a thoughtful, compelling way, funders won’t make that larger investment.”

Duh!
So, what has been your sales pitch to your board when trying to convince them to roll up their sleeves and engage in some planning. Please share your thoughts and experiences in the comment box below. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
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