Building an Effective and Revenue Generating Friends Board

Transcription

1 Building an Effective and Revenue Generating Friends Board Mary Beth Harrington, Passionate Nonprofit Expert 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

2 Biography 10 years corporate marketing, public relations, advertising (psychiatric hospitals, DFW Tourism) Carter BloodCare, Marketing Director Dallas Zoo, Graphics Specialist Dallas Public Library, Volunteer Coordinator Volunteer Center of North Texas Agency Relations Director Austin Public Library Foundation Executive Director TANO Community Outreach Director San Antonio Area Foundation Curriculum Development Director 501c³ - Taking Nonprofits to the Third Power - President 2

3 501c³ - Taking Nonprofits to the Third Power Clients Texas CASA Tennis Association (USTA) Meals on Wheels of Texas Texas Association of Museums Habitat for Humanity Texas Keep Texas Beautiful Literacy Texas Texas Library Association Friends of the Fort Worth Public Library Friends of the University Park Public Library 3

4 Pivotal Point Option 1 - Stay the course Option 2 - Allow change to happen Option 3 - Plan for change 0 Mary Beth Harrington mbharrington64@hotmail.com

5 Review of Roles & Responsibilities of the Friends Board

6 How do Libraries Benefit from Friends Groups? Friends extend a library s capacity through Dollar Gifts Material Gifts Volunteer and Program Support Advocacy 6

7 Attributes of an Effective Friends Board Commitment to the Library s mission. Understanding of the Friends governance roles. Active involvement in Friends activities, committees. Thinking and acting strategically; not involved in day-to-day management of the Library. Abiding by the Duties of Care, Loyalty and Honesty. Supporting the Library both financially and through advocacy. 7

8 Responsibility of Governance Different from Governance Board!

9 Strategic Direction The Board of the Friends has Ultimate Responsibility for Setting the Strategic Direction of the Friends organization. Annual planning retreat. Strategic plan is kept alive. Progress reports at every Friends Board meeting. 9

10 Governance The Friends Board has Ultimate Responsibility for the Effective and Efficient Governance of the Friends organization. Policies and procedures for Friends board operation. Bylaws Oversight (finances, planning, etc.) Training (orientation) 10

11 Mission and Purpose The Friends Board has Ultimate Responsibility for ensuring the Friends organization operates to serve the Mission and Purpose of the Library Mission-driven decision making. Mission printed on all Friends board and committee agendas. Organizational culture prevents missiondrift. 11

12 Roles and Responsibilities Friends Board Members Work as a team to support the mission of the Library and creates the vision for the Friends organization s future. Friends Board Chair Acts as liaison between the Board Members and the Library Director as well as the Board Members and each other. Library Director Acts as a liaison between the Friends Board and the Staff and handles day to day operations for the Library. 12 See Section 6.02(d)

13 Fiduciary Responsibilities

14 Duty of Care Friends Board members must act as an ordinarily prudent person would act under similar circumstances. Translation: Friends Board members must come to meetings prepared. The Friends Board speaks with one voice and respects the wishes of the majority. 14

15 Duty of Loyalty Friends Board members must put the interests of the Library and Friends organization above their own. Translation: The Friends Board has a conflict of interest policy and consistently enforces it. 15

16 Duty of Honesty Friends Board members must act in accordance with the Friends organization s stated mission and applicable laws. Translation: The Friends Board follows the bylaws, ensures timely and accurate filing to regulatory bodies, reviews the Form 990 before it is filed, etc. 16

17 IRS 990 Huge implications for nonprofit governance. Transparency is a public document Recommended post on organization website as well as GuideStar, Charity Navigator. Conflict of Interest Relationships Friends Board members and their contact information listed on Library website? 17

18 Policy Musts Conflict of Interest Policy Whistleblower Policy Document Destruction Policy Director s & Officers Insurance 18

19 Responsibility of Friends Board Management

20 Friends Board Orientation Required for New Friends Board Members Governance and fiduciary duties. Budget and financials (Form 990). Strategic plan. Friends Board Member job descriptions Commitment letter. Mission, vision and core values. Policies and procedures. Conflict of interest. Connections! Networks! Mary Beth Harrington

21 Another Friends Board Member s Contacts Your Contacts Library alone 21

22 Hold Effective Friends Board Meetings Friends Board Chair leads the meetings Friends Board responsible for board documents and sends agenda, minutes, financials, reports prior to meeting. Use Consent Agenda Delegate committee work to committees. Use Robert s Rules. Stick to the agenda. Begin and end on time! 22

23 Establish Effective Friends Committees Committees do the day to day work and report to Friends Board via Committee Chair (Board Member) Action plans shared with full Friends Board. Assess progress at every meeting. Sunsets. What method will you use to select committee members? 23

24 Friends Board Tenure Term Limits. Term Limits. Term Limits. New blood, ideas, connections, $$$ s Remove deadwood Hold Friends board members accountable Reasonable commitment Average tenure is 3 years, renewable once. Retire to Advisory or Emeritus Status. Allows people too feel they are not making a huge time commitment. 24

25 Friends Advisory Boards Allows Friends board members an place to land at the end of their term Keeps them engaged and committed Create a written description of the advisory board s responsibilities and the expectations for its members. Assign a liaison from the official Friends Board. Commit the time to work with the advisory board so that advisory board members don t feel ignored or superfluous. Hold annual meeting, send updates. 25

26 Deal with Unproductive Friends Board Members You get what you accept and what you reward! Term limits. Commitment letters. Keep performance expectations high. 26

27 Responsibility of Friends Board Recruitment

28 Expectations Ensure a Consistent Message About Expectations, Roles and Responsibilities Develop a Recruitment Packet: Time requirements in detail. Talent serve on Friends Board committees. Treasure make annual contribution. Other: Roster, annual report, financials, fact sheet, history, accomplishments, etc. 28

29 Ongoing Nominating Committee Tools for the Effective Nominating Committee: Matrix What skills are needed? When are they needed? Who? Brainstorming. Relationship to organization? Plan to recruit. Discussion what do you need? 29

30 Board Recruitment Matrix Access the current Friends board members based on Skills Contributions Contacts Is the Friends Board diverse based on gender, race, economic means, area of town, others? Does the Friends Board reflect the community? 30

31 Responsibility of Financial Sustainability and Advocacy

32 2013 Giving USA Report Charitable giving increased 3.5% Giving by individuals increased by 3.9 % Giving by bequests declined by 7.0% Giving by foundations increased 4.4% Giving by corporations increased 12.2% Giving to religion is largest 32% Giving to education and human services13% Giving to foundations10% Giving to health organizations 9% Giving to arts and cultural organizations 5% 32

33 2013 Giving USA Report Giving by Individuals - 72% Giving by Foundations 15% Giving by Bequests 7% Giving by Corporations 6% 33

34 Effective Fundrai$ing Success Rate Individual Contributions Bequests Grants Corporate donations Special Events* Amount of Staff Time Special Events* Corporate donations Grants Bequests Individual Contributions 34

35 Special Event Fundrai$ers Which of these is the real purpose of a special event? 1) To make as much money as possible! 2) To use the event as a way to market our mission to cultivate potential new donors and if we make a profit, all the better! 35

36 Friend raising Board Board members introduce friends to Director Board member follows meeting with phone call or note to friend. With permission, friend is added to organization communications. Friend is invited for tour library to see programs in action. Board member follows tour with phone call or note to friend. Friend is invited to call to action event Mary Beth Harrington 36

37 Another Friends Board Member s Contacts Your Contacts Library alone 37

38 Advocate Everyday Once a week tell someone about the Library Be the go to person for information on the Library Effective Friends board members serve on one board at time Loyalty Faith Based Organization School Friends/Marble Falls Public Library 38

39 The Brave New World

40 Strategize for the New Demographics Silent Generation Involvement because it makes you a better person Baby Boomers Involvement to see specific impact Millennials (soon to become new participants!) Involvement to be a part of something, to do something or be with someone. Web 2.0! How do you entrust your brand to individuals to create community around themselves in the name of your brand? Marc Chardon, Former Blackbaud President & CEO Mary Beth Harrington mbharrington64@hotmail.com 40

41 Web 2.0 Engagement Web 1.0 Events We decide the day, time and location, provide the tools, day, set the course, you show up and bring your $$$ - Car Wash Web 2.0 Events You create your own social experience and project our brand through it - Let s have a car wash! 41

42 Web 2.0 Web 2.0 Created by individuals themselves. Positive + They not only donate, but advocate, volunteer, initiate programs and activities. Negative Short timer, desire full responsibility, know everything Mary Beth Harrington mbharrington64@hotmail.com 42

43 Talk Story Identify four or five supporter types/profiles Have Friends board members call members and ask: What is it that the Library does well? How did you get engaged in the Friends? Two things emerge: Rebuilds the connection because it reminds them why they care about the Friends Identifies what programs people want Use social networks and social media to reach new people! Mary Beth Harrington 43

44 Keeping Good Friends Friends Board Training Every Year Follow Guidelines for Roles and Responsibilities Effectively Use Committees and Advisory Board Follow Library Accreditation Standards Keep the Lines of Communication Open Develop an Annual MOA/MOU with the Library 44

45 Focus Conversation What are some of the items we covered today? Where are you clear? Where are you confused? What difference will what we did today make? All Answer: What are you willing to commit to? 45

46 Friends and Nonprofit Resources

47 Favorite Nonprofit Websites GrantStation Chronicle of Philanthropy - Nonprofit Quarterly - Blue Avocado BoardSource - Idealware TechSoup Nonprofit Risk Management Center Independent Sector C-Forward Texas C-Bar 47

48 Favorite Friends and Library Websites Texas Library Association TLA Conference - April 14-17, 2015 Library Friends, Trustees, & Advocates Round Table- United for Libraries- National Friends of Libraries Week October 19-25, Mary Beth Harrington mbharrington64@hotmail.com 48

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56 Advice and Counsel are Free! 501c³ - Taking Nonprofits to the Third Power Mary Beth Harrington mbharrington64@hotmail.com