Roles, Responsibilities, and Functions of Nonprofit Boards, Quizzes of Business Management and Analysis

Download Roles, Responsibilities, and Functions of Nonprofit Boards and more Quizzes Business Management and Analysis in PDF only on Docsity! TERM 1 Primary Responsibilities of the Board DEFINITION 1 Governance:Oversee/Evaluate and Review/Monitor Leadership:In partnership with CEO and management, guide the mission and direction Stewardship:Ensure dedication to, and use of assets for, benefit of public TERM 2 Specific Responsibilities of the Board DEFINITION 2 Hire/support/evaluate/discharge CEO Review and approve annual budget Review and approve major organizational decisions, commitments, and plans including expenditures, loans and leases. Evaluate progress toward program and financial goals Ensure the continuity of the organization through development and recruitment of executive staff In conjunction with executive staff, provide leadership on organizational transition, structure and planning Conduct affairs of the board including board development, transition, and effectiveness. TERM 3 Supporting Functions of the Board DEFINITION 3 The board will assist in operations by giving support to: Fundraising Planning Public and Community Relations Others as Needed TERM 4 How the Boards Meet These Responsibilities DEFINITION 4 Board orientation Information flow: financial statements, reporting regarding programs and operations, planning Each director's exercise of informed, independent judgement Appropriate board organization and continuity Board meetings, agendas, minutes, documentation Appropriate committee structure Protecting assets of organization Determination of Board-Executive Staff relationship and extent of delegation of management authority TERM 5 Primary responsibility of the board is: DEFINITION 5 Fiduciary, guarding the public trust TERM 6 Duties of the Trustees DEFINITION 6 Duty of care Duty of loyalty TERM 7 Conflict of Interest DEFINITION 7 A trustee must disclose whether they have a potential conflict of interest to any matter that involves the organization. TERM 8 Compensation and the Board DEFINITION 8 Board members of NPOs are not usually paid unless the organizational bylaws state otherwise. TERM 9 Can nonprofits offer shares to shareholders? DEFINITION 9 Yes, but it must be clearly denoted in the organization's Articles of Incorporation.Holders are entitled to one vote per share and shares are non transferable. TERM 10 Rights of Board Members in PA DEFINITION 10 Board members have the right to receive all information that is necessary and relevant to assist them in performing their duties. Board members have the right to call special meetings by submitting written requests and once requested, a meeting must be held within the 60 days following the organization's receipt of the written request. Board members may bring court actions to contest activities that affect their rights and duties. Board members have the right to disagree with actions taken at meetings and may ask to have their disagreement noted in the minutes of the meeting at which the action was taken. Otherwise, they may submit a written dissent to the secretary of the corporation immediately following the meeting. However, board members may not dissent if they voted in favor of the action that was taken. TERM 21 5 Suggestions from a Trustee DEFINITION 21 Aggregate Communication Prioritize Communication Simplify Communication Be Specific Clear Goal and Clear Value TERM 22 Over-arching message... DEFINITION 22 SIMPLIFY TERM 23 Consider giving your board this book: DEFINITION 23 Fund Raising Realities Every Board Member Must Face: A 1 Hour Crash Course on Raising Major Gifts for Nonprofit Organizations by David Lansdowne112 pages TERM 24 A reasonable goal for the board: DEFINITION 24 is for the "insiders" to provide up to 20% of the final goal of the campaign. TERM 25 What percentage comes from individual donors? DEFINITION 25 65% TERM 26 Donor Ratio DEFINITION 26 90% of the money is from 10% of the donors TERM 27 Agendas ideally should include: DEFINITION 27 Topics to address in that meeting Specification of how each topic is to be addressed in that meeting Specific times to address each topic TERM 28 A good meeting agenda serves four functions DEFINITION 28 It forces the meeting leader to think out what needs to be accomplished. Provided ahead of time, the agenda lets people know what to expect Provides a blueprint to follow It reminds people of what there is left to cover if time is running out. TERM 29 Public agendas are typically... DEFINITION 29 binding, meaning the meeting participants cannot stray from the items listed. TERM 30 The header of the agenda includes: DEFINITION 30 Organization name Group Meeting Agenda Location Date Start and End times TERM 31 The body of the agenda: DEFINITION 31 Lists the actual items to be covered during the meeting and the time allotted for each. TERM 32 Three modes of governance DEFINITION 32 The fiduciary mode, where boards are concerned primarily with the Stewardship of tangible assets. "What's wrong?" The strategic mode, where boards create a strategic partnership with Management. "What's the plan?" The generative mode, where boards provide a less recognized but critical source of leadership for the organization. "What's the question?" TERM 33 Ideally, boards would hit a "trifecta" where their work is: DEFINITION 33 1. Indispensable to governing2. Valuable to the organization3. Satisfying to trustees