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Implement a Monthly ED/CEO Report to Keep Your Board Informed

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As a nonprofit leader (ED/CEO), it can be difficult when members of the Board of Directors aren’t familiar with or knowledgeable about the overall operations of the organization—especially since the board is the governing body of the nonprofit and their decisions directly impact how efficiently and effectively a nonprofit can function. This can lead to some challenging conditions, especially when decisions are made that aren’t in line with the nonprofit’s mission or its strategic plan. 

While you can’t compel board members to stay informed, many EDs/CEOs put together a monthly informational board packet before a board meeting to update their board members and keep them in the loop about the nonprofit’s ongoing activities. Now, I know many of you are saying, “I already really try to do that, but it’s not working!” Believe me, I hear you.

There’s nothing more exasperating than sending out your board packet with all of that great material, only to have board members ask for a copy of the packet when they arrive at the meeting. And as the meeting progresses, it can become obvious that some of the board members didn’t read the packet beforehand and aren’t prepared to make fully informed decisions. Without a clear, coherent path for the organization’s leader and staff to follow, frustration, burnout and lack of goal attainment may soon follow.

So . . . what’s a CEO/ED to do?

The nonprofit is competing for the attention of board members who, like many of us, are bombarded with information overload in their professional and personal lives. Take a page from the “less is more” concept of minimalism and do some “decluttering” for them by preparing a condensed, yet highly informative Executive Director/CEO Report (sometimes called an Executive Summary). You can send this to all board members separate from or along with the full board packet. A busy board member is much more likely to read an ED/CEO Report even if they don’t take time to review the complete packet.
 
Five Suggested Areas to Include in the CEO/ED Report:

  1. Updates on strategic goals: The organization’s strategic goals should guide the daily operations of your nonprofit, and board members should have a part in developing and maintaining these goals. Therefore, they need to know what’s going on each month that impacts aspects of the overall strategic goals. Give a brief report on activities that affected these goals each month.
  2. Financial overview: While a financial report should be given at each meeting, the organization leader could provide a brief summary of the primary facts and figures the board needs to know. This could include total expenses, income, and cash available at the end of each month, along with a summary of any recent fundraising activities and results.
  3. Updates on priority matters: Are you waiting for a big donation to arrive? Is there news about a tax or compliance issue? Include these announcements in a regular section of the report to keep the board updated.
  4. A connection to the mission: What has the organization done this month that highlights its mission? Who has been served, and where did you make an impact? Let the board know the good work associated with the nonprofit’s mission by sharing a member testimonial or short story to illustrate the positive activity.
  5. How can the board help: Many board members are happy to provide a helping hand if asked, but they often have no idea about what to do or how to provide support. Include a section suggesting ways the nonprofit could use the expertise of your board members. This could be as simple as reminding them to seek out new board members with particular skill sets, or requesting assistance on a specific volunteer task during the month.

In conclusion, providing board members with a concise executive summary each month can: (1) strengthen the communication between the CEO/ED, board members and staff, and (2) enable board members to formulate more well-considered decisions at board meetings. Conscientious board members need and should want to know what’s happening in the organization. The monthly ED/CEO Report gives board members insights into daily nonprofit activities, and highlights the hard work that the leadership and staff tackle every day.
 
Resources for developing an ED/CEO Report for the Board of Directors:
 
How to Write a Good Board Report
https://www.joangarry.com/board-report-template/
 
Board Members Zoning Out? Stop Reading the CEO Report
https://blog.boardsource.org/blog/board-members-zoning-out-stop-reading-the-ceos-report

Training and Orientation for New Board Members

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After meeting dozens of people who would like to serve on a nonprofit board, one thing they all have in common is their desire to do a great job as a board member. However, very few small nonprofit staffs have the expertise or personnel readily available to provide new board members with the tools needed to navigate through the web of policies and procedures they will encounter.

Why New Board Members Need Training

Most nonprofits are just happy to find a person interested enough to join the board—but to keep them engaged and feeling productive, it’s necessary to do some training. That’s because a new board member may have no idea of what needs to be done or how to do it. Even new members with prior board experience will need to learn the ins and outs of the particular nonprofit’s board operations.

How Orientation and Training Help New Board Members
 
Board orientation and training is therefore important for a member because it helps them learn how they can best serve as a professional asset to the nonprofit. These sessions provide new board members with the specific knowledge and resources to know how to execute their roles and responsibilities successfully.  Traditionally, the Board President and the CEO or Executive Director take the lead in instructing and familiarizing new members by discussing the board’s and nonprofit’s goals and priorities. Orientations also allow current board members to interact and share information about how the nonprofit and the board function together.

Steps to Board Orientation and Training
 
Ideally, a board needs to have a plan in place for orientation and a process for training new board members. Below are some guidelines, and Spokes members can visit the Resource Library page on our website to find a more complete listing.

  • Orientation should take place shortly after a new member is elected to the board, ideally before the new member’s first meeting, and should be conducted by the board chair along with the executive director and anyone else they think is appropriate.
  • New board members should be fully briefed on the activities of the nonprofit, the history of the organization and their strategic plan, and be given copies of prior board minutes, the articles of incorporation and bylaws in a New Board Member Orientation Manual customized to reflect the nonprofit’s administrative structure. 
  • A board agenda and any documents needed for their first meeting should be added into the New Member Board Orientation Manual.
  • Assign a current board member as a “buddy” to mentor a new board member, and ask the new member if they would like to join one of the board committees as well. Working with a smaller group on a specific project can help balance out the sometimes overwhelming number of issues a new board member must digest at the beginning of their term.

Resources for Board Orientation and Training

Spokes Members can find a more complete outline on their Member’s Online Resource Library page:
https://spokesfornonprofits.z2systems.com/np/signIn.do?target=%2Fpublicaccess%2FneonPage.do%3FpageId%3D1%26

Member General Resources Links:
https://www.spokesfornonprofits.org/services/nonprofit-resource-links/

Additional Information:

Board Orientation:
https://www.councilofnonprofits.org/tools-resources/board-orientation

Board Manual Template:
https://www.gov.mb.ca/agriculture/industry-leadership/being-a-board-member/pubs/board-manual-template.doc


Volunteers: A Valuable Resource

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People who give of their time, skills and resources as a nonprofit volunteer provide invaluable resources to nonprofit organizations. Now is a great time to show your appreciation for your nonprofit volunteers during National Volunteer Week.

National Volunteer Week is an opportunity to celebrate the impact of volunteer service and the power of volunteers to tackle society’s greatest challenges, to build stronger communities and be a force that transforms the world. Each year, we shine a light on the people and causes that inspire us to serve, recognizing and thanking volunteers who lend their time, talent and voice to make a difference in their communities. (Points of Light https://www.pointsoflight.org/nvw/)

The actual value of the time spent by volunteers working in a nonprofit is not reported on IRS Form 990 or 990-EZ, so the exact economic impact of nonprofit volunteerism is unknown. However, a report on San Luis Obispo County nonprofits estimated volunteers provide more than 627,274 service hours annually, and that could be a very low estimate (Beacon Economics).

Additionally, volunteers help fill the gap for vital professional services when budgets are tight and more assistance is needed. Just as in for-profit companies, salaries are usually the highest line item in a nonprofit’s budget. Most nonprofits can’t afford to hire the amount of staff needed to adequately meet operational demands. In addition, some businesses may not have staff at all and depend solely on volunteer help to function. Being consistently short-staffed and overworked can cause burnout, resulting in employees leaving to seek work elsewhere. Hiring and retaining volunteers thus becomes a crucial component in building a successful nonprofit.

Here are a few tips to help nonprofits find and keep the essential volunteers they need.

  • Plan for volunteers before you reach out: There are endless reasons why a person chooses to volunteer. Some want to give back to the community, develop new skills or stay connected with others. Whatever the reason, plan for your volunteer the same way you plan for other staffing. Create a job description to clarify the needs of the organization. This helps create realistic expectations for the volunteer as well as for the organization. However, be flexible as a volunteer may not want to do all of the tasks you’ve outlined, or you might get a person with a totally different but essential skill set that you hadn’t anticipated.
  • Prepare to make a good first impression: Let everyone know when a new volunteer is coming so they can give him or her a warm welcome and the volunteer knows that their service is appreciated.  When setting the first appointment, be clear if you expect the person to start helping immediately or if this is just an initial interview. Have the volunteer application and information on the nonprofit ready to share with each applicant. Bringing in a volunteer is similar to bringing on a regular staff member—that is, treat everyone the same. For instance, if a background check is required for employees, then it should be required for volunteers as well.
  • Provide an onboarding training session: Having a first day onboarding session with a new volunteer is imperative to orient the person to the organization and for you to get to know them better. Be welcoming and positive so the person feels relaxed. Create a designated place to store belongings and to work, and provide and review information in your Volunteer Handbook together.

These few tips are just the start for working with volunteers, but getting off to a good start sets the tone for a successful relationship. To get more tips on working with volunteers, join Spokes for the following April workshops:

  • Preparing Your Agency for Volunteers, Tuesday, April 16, 9-10:30 a.m.
  • Keys to Keeping Quality volunteers: Volunteer Retention and Motivation, Tuesday April 23, 9-10:30 am.

See information below in the newsletter for more information on the workshops.

For Spokes members, go to your Online Resources Library in your membership area to find multiple resources for volunteer recruitment, management, and retention.

Other Resources:

2013 Central Coast Economic Forecast, Beacon Economics. www.Beaconecon.com

Top 10 Strategies for Retaining Volunteers that Actually Work: https://www.givegab.com/blog/top-10-strategies-for-retaining-volunteers-that-actually-work/

Nonprofit Board Governance

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Have you heard these statements?

  • “Nonprofit Boards of Directors must practice good governance.”
  • “The nonprofit is governed by its Board of Directors.”

The topic of nonprofit Board governance can be confusing, mostly because this important concept may not be fully understood. In general, governance brings together policies, systems and structures that provide support to Board members in making good decisions for the nonprofit according to expectations of the public trust.

Right there, you see that the topic can get confusing. It might help to know that governing a nonprofit is different from governing a for-profit organization. Nonprofits serve a public purpose without benefiting any particular individual. Therefore, the basic goal in governance for nonprofits focuses on protecting and furthering the mission of the nonprofit. However, the goal of a for-profit company is to generate income for the company, employee and shareholders.

Nonprofit boards are considered “Stewards of the Public Trust”, which signifies the general public trusts that a nonprofit is fulfilling its mission as stated to the IRS when it was granted exemption status as a nonprofit organization. The Board has three primary responsibilities: Duty of Care, Duty of Loyalty, and Duty of Obedience.

Duty of Care means the Board will make decisions with the same level of care as each member would for their own personal assets (even though board members have no personal assets in the nonprofit).

Duty of Loyalty means the Board puts the needs of the organization and the population that it serves above all other needs, especially the individual’s or group’s personal agenda.

Duty of Obedience means the Board will maintain compliance with all legal standards and regulations required for the exempt organization, including annual filings with state and federal agencies.  

A 2017 study on Boards of Directors showed that 56 percent of nonprofit Boards struggle with weak Board governance. As a result, approximately 52 percent of nonprofits are unable to expand their impact because of a weakness in strategic thinking such as developing a mission, strategy, impact evaluation, or insight by their Board.

What should be noted, however, is that these limitations are most likely not the fault of the Board members. Instead it’s more a matter of “you don’t know what you don’t know!” Without a doubt, those serving on a nonprofit Board have every intention of doing the right thing, making the right decisions, and being a good steward of the organization. But like coming into anything for the first time, Board members need to learn how to effectively govern a nonprofit and serve as a productive Board member. That takes information, training and dedication.

Spokes is always here to assist nonprofit Boards with the development of policies and procedures as well as providing an understanding of the legal and ethical responsibilities of the Board. Visit our website at https://www.spokesfornonprofits.org/services/just-for-board-members/ to learn more about the resources we have available to provide local nonprofit Boards with the management training, consulting and resources they need to better serve our community.

Resources about Nonprofit Board Governance:

Good Governance Policies for Nonprofits: https://www.councilofnonprofits.org/tools-resources/good-governance-policies-nonprofits

Study: Most Nonprofits Lacking in Leadership, Management http://www.thenonprofittimes.com/news-articles/study-nonprofits-lacking-leadership-management/

Could Your Website Get Hacked? A Reality Check!

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You might think it could never happen to you but one morning you find out your website no longer exists or it’s connected to a site you’re ashamed to show. Don’t think your small nonprofit would be of interest to a hacker? Well, according to a recent FBI report, there’s been a 270% increase in online fraud and cyber scams in the past two years and smaller organizations and nonprofits tend to be the latest targets. Hackers find these organizations to be less technically savvy and lacking in security measures that protect their websites and other technology, making them an easy target. Not only is it terribly inconvenient to have your business operations taken over by a hacker, it raises multiple ethical and legal issues to consider.

Here are a few reasons to be concerned:

  1. Conducting nonprofit business often requires collecting information protected by law as confidential. A breach in this confidentiality poses a risk for individuals whose data has been disclosed and puts the nonprofit in a position of being subject to liability for the breach.
  2. Many nonprofits use a website URL’s that ends in .org. which can help them rank higher and have better visibility in donor searches. However, this also results in making them easier to find for hackers.
  3. If you do any e-commerce on your website, such as processing donations or event registrations, personal payment information could be compromised or stolen.
  4. Information handled by nonprofits are of interest to hackers including donor information, client records, confidential emails, habits and preferences of donors, patrons,  and other data.

Donor and client trust are imperative for nonprofit operations, having to notify your donors or clients that their personal information (such as medical information, employee records, social security numbers, driver’s license number, etc.) have been compromised could result in serious consequences for the nonprofit.

So what’s a nonprofit to do?

  • Start by attending the upcoming Spokes workshop: “Don’t Get Hacked!” Thursday, March 7, 9-11 a.m. facilitated by Rony Krell. You’ll learn is to better understand the cybersecurity landscape, the costs of data breaches, and proactive strategies you can take to protect your nonprofit. Each participant will receive an actionable cybersecurity checklist to take back and use at your nonprofit. The information will be presented in a way that won’t require any technical expertise to understand the information.
  • Take an assessment of your data to determine what data you store on individuals, where the data is stored, how much you actually need, and data what you could do without. This simple one-page inventory tool will help you think through this process.
  • Determine whether the data you collect and maintain is considered “personally identifiable information” by federal or California regulations. If so, there are several steps you would have to take to inform those affected of a security breach. Look in the resources section below to prepare for this possibility.  
  • Learn how to secure your data and take the necessary steps to make that happen such as making sure you have proper firewalls, virus protection, and regular file backups.
  • Be sure you has an HTTPS certificate that encrypts data transmitted between your website the user’s browsers. If you use laptops, consider encrypting the hard drives to scramble data until an encryption key is used. This won’t protect again hackers but it will protect against anyone who might have physical access to your computer.

All of this might sound complicated but you can easily learn the basic steps to enhance your cyber-security in our upcoming workshop “Don’t Get Hacked!”. Be sure to visit the additional resources for more information and several downloadable tools and resources. 

Additional Resources

FBI Warns of Rise in Hacking

Cyber Security for Nonprofits: Council of Nonprofits 

California Legislative Information on Security Breaches

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