A crash course

IN BOARDS
Nonprot organizations and publicly-owned for-prot corporations have them, but what do they do?
Businesses and organizations need oversight from time to time. Thats where a board comes in. Boards of directors help steer organizations. Here are some specics to give you a better idea of what they do to help:1
EXECUTIVE LEADERSHIP

BOARD OF DIRECTORS

Establish mission and vision

Contribute to organizational planning

Select and support executive leadership

Evaluate executive leadership performance

Ensure and manage resources

Evaluate program and service performance

There are some differences between nonprot and for-prot boards, though. Here are a few:
Purpose FOR-PROFIT Earn revenue for owners (shareholders) NONPROFIT Serve the public Meet the publics needs Not usually on the board Unlikely Likely Increased prot margins and greater revenue Usually on the board Likely Unlikely Success Role of director Compensation Fundraising responsibilites

Board Structure
1. Chairman of the board2
Develop meeting agenda and preside over meetings Recruit board members of the community Contribute to strategy development with the executive team, streamline it, and then supervise its execution by management Oversee and assess executive performance

2. Secretary
Keep meeting notes Track meeting minutes Certify formal and/or legal documents

3. Treasurer3
Annual budgets Audits Forecasting

Many boards also have committees.

Committees are formed in an effort to help the board with planning and project management. There are committees on things like Personnel, Marketing, Finance and Program Development. Utilize the skills of your board members within the committees.

FINANCE

Board Size

Oftentimes, the more established a board is, the more people it has. Many states require just three people to be on a board and in some cases just one. As the organization grows, so does the board.

Median board member count = 5.5

Which is better? A BIG board, or a small board?

AR

KET

BIG boards

Have greater diversity of membership And a wider range of viewpoints and ideas. Tend to be more bureaucratic and slower-moving

Bylaws are like the laws of a government or the rules of a game. Bylaws dictate how the board is organized, how it operates, and includes some other rules like:6

Time, location and structure of meetings

If the corporation is a for-prot, bylaws should include the title and rate of pay for ofcer positions

Being part of a board can be a great way to develop leadership experience beyond the ofce. Start looking around your community for a board in need of some up-and-coming-leadership potential like yours to guide them into the future.

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Sources
1 McNamara,

Carter. What Is a Board of Directors? What Does a Board Look Like? All About Boards of Directors (For-Prot and Nonprot). Authenticity Consulting, LLC., n.d. Web. 23 Oct. 2012. <http://managementhelp.org/boards/index.htm>.

2 Corsi,

Carlo, Guilherme Dale, Julie Hembrock, and Willi Schoppen. Five Things Board Directors Should Be Thinking about. Five Things Board Directors Should Be Thinking About. SpencerStuart, 01 Dec. 2010. Web. 23 Oct. 2012. <http://www.spencerstuart.com/research/articles/1475/>. Kate. Balancing the Mission Checkbook. What Makes a Great Board Treasurer? Nonprots Assistance Fund, 28 Sept. 2010. Web. 23 Oct. 2012. Is the Best Size for Your Board? Council on Foundations, 2010. Web. 23 Oct. 2012. <http://www.cof.org/les/Documents/Governing_Boards/Board%20Briefs/Boardsize.pdf>. Are Corporate Bylaws and Why Are They Important? All Business. Dun & Bradstreet, n.d. Web. 23 Oct. 2012. <http://www.allbusiness.com/corporate-governance/corporate-formalities/1389-1.html>.

PERSO
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EL

ING

Small boards
More exible when it comes to meetings and agendas Tend to be tighter knit Run the risk of narrow-mindedness and stagnation

Bylaws

How many board members are needed

What kinds of qualications they should have

Approval of contracts, loans, loans, checks and, if a for-prot, stock certicates

Process by which a board law, article, charter or constitution may be changed

Infographic created by www.4imprint.com, based on the . Boards: Why do they matter? Blue Paper Download Blue Paper at: http://info.4imprint.com/bluepapers/boards-why-do-they-matter/

3 Barr,

4 What

5 Ibid. 6 What

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