Nonprofit Knowledge Matters

Posted:

June 12, 2013

Nonprofit Employers and Health Care Reform: What You Need to Know Now!

We admit that we tried to wrap it up and tie a bow on it, but we couldn’t figure out how to share what nonprofits need to know about the Affordable Care Act (“ACA”) in a way that creates excitement. Instead we’re resorting to the time-tested theory of risk-avoidance: If there’s a risk of monetary penalties, most people pay attention!

So, that’s it folks: There could be penalties!

Now that we’ve got your attention, let's agree that as proactive and caring community leaders, nonprofits need to act NOW to prepare employees and board members for changes ahead. Your nonprofit will want to be able answer questions from employees about how their health insurance options will change. Board members will be curious about how coverage for employees’ health insurance will impact future budgets – and potentially the nonprofit’s staffing.

Whether it's new reporting requirements, or the ability for employees (and employers) to purchase insurance through a state’s Marketplace, changes resulting from the ACA will impact every workplace. Even though these changes will take effect January 1, 2014, enrollment in the state Marketplaces is scheduled to begin October 1, 2013, and many employers must provide notice to their employees of coverage options no later than October 1, 2013, so it’s not too soon to tee up decisions that will need to be made by year-end.

To provide you with some assistance, we updated our website with FAQs and other resources about key provisions in the Affordable Care Act, tailored for the charitable nonprofit community. But since “everything is local,” we encourage all charitable nonprofits to stay connected with their state association of nonprofits and watch for other educational programs and state-specific information about the implementation of the Affordable Care Act.

If you don't handle the insurance plan for your nonprofit, please help your nonprofit comply with these new regulations (and avoid possible penalties) by forwarding this email to your CEO and to the person who handles your nonprofit's health plan.

The Affordable Care Act – Get Ready!

Ways to Get Ready:

Think about how well your current health insurance plan works for your nonprofit and your employees.
If your nonprofit doesn’t offer health coverage now, but would if a plan were affordable, consider what benefits the nonprofit might provide. Also consider the amount the nonprofit may be able to contribute toward a health insurance plan.
Talk with an insurance broker about how they can help you make the best choices for your nonprofit and your employees.
Ask your tax advisor if your nonprofit qualifies for a refund through the “Small Business Health Care Tax Credit” program that is administered by the IRS, which could make it more affordable to offer health insurance to the nonprofit's employees.

Key Provisions at a Glance

To be prepared for obligations under the Affordable Care Act (“ACA”) that begin in October 2013, all employers should, starting now, become familiar with the elements of the ACA that apply to your nonprofit workplace.

Want to learn more?

Upcoming free webinars from the Department of Health and Human Services

The Health Care Law - Health Insurance Marketplace 101

June 19 at 12:30 pm Eastern

Join this webinar to learn about the main provisions in the Affordable Care Act and how to access care in your community. Topics include the Health Insurance Marketplace, how to enroll in health insurance, and how to receive updates on implementation of the law. A brief question and answer session will provide answers to commonly asked questions.

This presentation will be repeated:

July 11 at 2:00 pm Eastern | Register

August 7 at 3:00 pm Eastern | Register

What is happening in my state?

Map of state-by-state decisions on Health Insurance Marketplaces and Medicaid expansion (current as of May 30th).

Did you know?

Many employers will have to notify their employees of coverage options by October 1, 2013?

Here are two sample notices: One for employers who do not offer a health plan, and another for employers who offer a health plan.

One of the biggest barriers to getting, keeping, and using health insurance coverage is a lack of access to information and assistance at a level and in a language the consumer can understand.

Overall there is a HUGE lack of awareness about health care reform. In one poll, 78% of those polled who are currently uninsured were unaware of the changes coming in 2014, and of the polled population who are eligible for Medicaid, 83% were unaware of the issues involving Medicaid expansion.

What is “full-time” employment under the ACA?

The definition of “full-time” worker under the ACA is any individual reasonably expected to work at least 30 hours per week. (Not sure whether your employees are “full time”? Review this guidance paper from ADP).

Resources

7 things for nonprofit employers to do NOW to get ready for the SHOP enrollment period in October.

Summary of health care reform (Kaiser Family Foundation)

Federal government resources on health care reform

IRS tax credit for small workplaces

ACA: Myth vs. Fact

7 key terms that you need to know about the ACA

Posted:

May 15, 2013

Introducing a new transparency tool: The Nonprofit Audit Guide

Independent audits promise increased financial transparency by providing a window into the financial operations of an organization. But for many staff and board members trying to learn about audit practices, the promise is elusive. Ironically, audits can cause more confusion than transparency! We found that although search engines yield plenty of helpful resources about independent audits, there didn’t seem to be a comprehensive online resource just for charitable nonprofits. And, it was hard to find practical advice shared alongside the often-complicated legal requirements. So, we set about to provide answers to questions such as, “What is an independent audit? and “Does my nonprofit need to have one?”

We developed the Nonprofit Audit Guide, a resource that board members and nonprofit staff can refer to for practical information about independent audits. The Guide also includes information about the federal law requirements for “single audits” and provides information about state law requirements. Because the laws that address independent audits differ state-by-state, we created a 50-state audit chart.

What if your charitable nonprofit is not required to conduct an independent audit? Should it do so anyway? We asked Ed Mulherin, founder of eCratchit, (a firm that conducts outsourced bookkeeping for charitable nonprofits and helps staff and board members prepare for independent audits), for his opinion:

“Having an audit is a timely and costly proposition. Most nonprofits only have one when required by law or when a funder requires one. The fees for an audit typically start around $5,000 and can costs tens of thousands depending on the size, complexity, and state of the nonprofit’s books and records. You may be able to find a firm to do one on a pro bono basis, but this is rare. (Auditors need to be independent, and some may consider a pro bono arrangement to impair their independence.) If a funder’s request is the only basis for the requirement, I would take a step back and consider the cost of the audit in relation to the funding opportunity, and then discuss other options with the funder.”

The Nonprofit Audit Guide explains those options, and provides information on selecting an auditor,preparing for the audit, evaluating the audit process, and much more.

We pulled together the best resources we could find about independent audits for nonprofits, including many from State Associations of nonprofits, and included them in the Nonprofit Audit Guide. We are pleased to share it with you and hope it’s useful. Feel free to send us your thoughts. The Guide benefitted from the review of a talented editorial board, and was developed with generous support from the First Nonprofit Foundation.

Enhancing your internal control environment

Content provided by First Nonprofit Foundation; authored by CliftonLarsonAllen

Whatever their mission or size, all nonprofit organizations should establish policies and procedures to assure that: 1) boards and officers understand their fiduciary responsibilities, 2) assets are managed properly, and 3) the charitable purposes of the organization are carried out. Failure to meet these three obligations is a breach of fiduciary duty, and can result in financial and other liability for the board of directors and the officers. External audits closely examine an organization’s internal control practices in the annual audit plan and management report. Effective internal controls help protect and manage an organization’s assets and address concerns raised by an external audit…

What are internal controls? (continue reading)

More from the Nonprofit Audit Guide:

Myth: Audits uncover fraud

State law audit requirements

Board’s role/Audit Committees

What is an “audit?”

The term “audit” has multiple meanings:

The IRS conducts “audits” of selected charitable nonprofits for compliance purposes.

A nonprofit may conduct an internal “audit” of its activities, such as a “communications audit.”

An “independent audit” refers to the review of financial statement and procedures by a CPA.

“Nonprofit Audits in a Nutshell”

Listen to the audio of a national webinar

Worth reading

Absent the Audit: How Small Nonprofits Can Demonstrate Accountability without One. (Nonprofit Quarterly)

How to be Audit Ready (AKA How to Make Your Auditor Smile!) (Nonprofit GPS)

Did you know?

26% of boards surveyed reported having a stand-alone audit committee

Nonprofit Governance Index 2012 (BoardSource)

Posted:

April 3, 2013

Pro Bono: A strategic approach to building capacity

by Jennifer Chandler

Nonprofit leaders are urged to make decisions and solve problems “strategically” – especially when operating in an environment of limited resources -- so why aren’t more nonprofits seeking out pro bono volunteer assistance as a strategic approach to their human resource needs? As a former coordinator of a pro bono legal program for nonprofits that annually helped hundreds of charitable nonprofits with scores of legal projects and saved them collectively hundreds of thousands of dollars every year, the reticence to engage with pro bono volunteers puzzles me.

As we approach National Volunteer Week let’s dust off the myths about pro bono. Board members provide an enormous amount of pro bono assistance to nonprofits. In fact, the Taproot Foundationestimates that the annual financial gifts board members make to charitable nonprofits is just a fraction of their contributions in other ways. Taproot asserts that some of the strongest nonprofits in the country are governed by board members who apply their core professional skills to support the nonprofits’ business infrastructures -- covering as much as 10-20% of these nonprofits’ budgets with their pro bono assistance. Just think if that happened at your nonprofit.

Board members are the most common example of pro bono assistance. But what if your nonprofit’s website could be designed by an experienced designer who didn’t charge a penny? And what if projects such as trademark registration for a logo, graphic design for an annual report, business planning, and consulting to select the right accounting software – were accomplished in a timely, professional manner – without the fees normally associated with top-notch talent?

For a growing number of charitable nonprofits this scenario is a reality. And thanks to a growing number of pro bono visionaries and pro bono match-makers, such as Taproot Foundation, andCatchafire, there is recognition that pro bono is a smart strategy to manage human and financial resources that also offers a nonprofit new connections and can actually free up staff resulting in improved effectiveness. Because pro bono offers so much potential, we asked Elizabeth Linzer, Lead Partnership Manager, Catchafire, to help us dispel myths that may be holding nonprofits back from seeking out pro bono volunteer assistance.

Linzer: “Many nonprofits tap into volunteers for support, either as a core part of their programming (for instance, Big Brothers Big Sisters) or as a supplement to staff and intern efforts. However, most organizations aren’t yet turning to pro bono as a strategic resource to help solve their higher level, technical, and strategic problems. Our belief at Catchafire is that this isn’t because pro bono isn’t “right” for some organizations, but rather that there are some common myths holding organizations back:

Myth #1: “I’m just too busy”: Nonprofit leaders often perceive volunteers as a distraction that should be kept out of their already over-booked and hectic schedules. Yet volunteers used strategically can essentially free up your leadership’s time and energy to focus on what they do best. For example, a professional fundraiser can develop your organization’s donor relations strategy and educate staff members on how to execute that strategy, while you focus on developing deeper relationships with the organization’s top donors.

Myth #2: “I already have too many volunteers”: Many organizations are already engaging community members as volunteers and feel like another volunteer might “break the camel’s back.” But organizations could instead focus on engaging a smaller number of pro bono professionals who bring strong professional skills, expertise, and personal passion to the table -- while still offering significant ways for traditional volunteers who are important “friends” and members of the community to contribute.

Myth #3: “Pro bono is the gift that keeps on taking”: Approached and executed in the right way, pro bono is anything but costly. We believe that pro bono must involve a strategic approach, clearly scoped projects, commitment from senior leadership, and the best possible volunteers. When pro bono is set up in this way, organizations receive more than a deliverable; they have an opportunity to build a relationship with their next employee, donor, advocate, and/or board member.

At Catchafire, we feel “in-the-know.” But the reality is we’re not alone. In the past decade, thousands of nonprofits across the globe have begun to embrace pro bono as a key part of their strategy, and support organizations, like Catchafire, ensure that it is a highly effective process. Pro bono can be the unexpectedsolution to addressing your organization’s most pressing problems. So the question shouldn’t be why not; but, how? How does every organization advance its mission by leveraging pro bono talent? The opportunity is clear, and organizations like Catchafire and Taproot are here to help.”

Technology is helping pro bono come into its own. Now a pro bono volunteer sitting in her office in Seattle can assist a charitable nonprofit in Alabama. Meanwhile, there is a growing awareness that with the right mix of careful project vetting, volunteer matching, and administrative support for the pro bono volunteer, as well as support for the nonprofit pro bono client, pro bono can move nonprofits forward by leaps and bounds.

We are enthusiastic about pro bono as a strategy for capacity building. We’ve invited Aaron Hurst, President & CEO of Taproot Foundation, and Rachael Chong, CEO & Founder of Catchafire to talk with our State Association network about steps nonprofits can take to leverage pro bono skilled volunteers for their own capacity building. We’d love you to join us on April 25th, 3:30-4:30 Eastern. Please register for this webinar through your state association of nonprofits.

Celebrate National Volunteer Week, April 21-27

Need ideas for celebrating volunteers? The resource guidefrom the Points of Light Foundation offers project ideas, resources, and ideas for recognizing your volunteers throughout National Volunteer Week and beyond.

Building Capacity with Pro Bono – Free webinar

April 25 - 3:30 pm Eastern
Contact your State Association for registration details

What we’re reading

Pro Bono Junkies Blog

Looking for pro bono legal assistance?

Are you a volunteer, with a desire to do more?

Take the pro bono pledge

Fun Fact
64.5 million people volunteered at least once between 9/2011 and 9/2012.

Source: Bureau of Labor Statistics

Trend Tracking

Nonprofit Finance Fund State of the Sector Report

More than half (52%) of the nonprofits responding were not able to meet the demand for their services in 2012. 54% say they will be unable to meet demand this year. 39% collaborated with another organization to improve or increase services.

Posted:

March 7, 2013

What is “Oversight” Anyway?

Board members are told that their role is to provide “oversight.” But what does that really mean? We were curious to investigate how board governance “experts” define board “oversight." We compiled this “Top 3 list” in case you are curious too.

1. Follow-through (aka “accountability”). What good is setting policy if the policies aren’t followed? Ellis Carter, Esq., author of the CharityLaw Blog, points out in her piece titled, “Top 15 Non-profit Board Governance Mistakes (From a Legal Perspective)," that exercising oversight is all about making sure that someone (the board) actually follows up on the authority the board delegates to staff and committees:“Oversight is commonly exercised through policies and procedures so long as the board ensures that the policies and procedures are actually followed.” An example of the follow-through challenge for boards is apparent in boards’ relationships with executive directors. In that relationship, appropriate “oversight” includes selecting the “right” person to lead the organization, reviewing and approving the appropriate level of compensation for the staff leader, evaluating his/her performance, and ensuring that there is a leadership succession plan in place. But as we know from numerous surveys and reports, including BoardSource’s Nonprofit Governance Index 2012, one of the oversight balls that boards are most likely to drop is evaluating the executive director’s performance. If boards were better at follow through, they would be regularly evaluating executive directors. More consistent follow-through would also help to avoid common symptoms of tensionbetween the board and CEO that signal insufficient (and indeed, a harmful lack of) oversight.

2. Seeing sustainability, not just dollars (aka “financial oversight”). When a board reviews the organization’s budget or considers whether adequate internal controls are in place, these activities are quite properly part of a board’s financial oversight responsibilities. But too often, the activities focus on the immediate cash flow instead of long-term sustainability. Boards that see their role as monitoring the financial health of the nonprofit, rather than just the financial status, will be more likely to ensure that there will be enough resources in the pipeline to continue providing programs -- or alternatively -- that it’s time to make a course correction. As Jeanne Bell, CEO of CompassPoint, points out in her Nonprofit Quarterly article, "Beyond Financial Oversight, Expanding the Board’s Role in Pursuit of Sustainability," in practice “financial oversight” is often defined as a handful of board members who monitor timely financial reports and drill down on budgets. Unfortunately only infrequently do boards look at the organization’s financial sustainability, which Bell describes as the entire “interdependent mix of programs and fundraising activities that work together to achieve a set of impacts and financial results.” As Jan Masaoka points out in her Blue Avocado article, "Ten Myths About Nonprofit Boards," it’s a myth that approving budgets is the “cornerstone” of the board’s financial oversight. By viewing its financial oversight role through a strategic lens, instead of merely an approve-the-budget lens, boards are more likely to see farther, towards financialsustainability. We like the practical way Andy Robinson and Nancy Wasserman put it in the chapter of The Board Member’s Easier Than You Think Guide to Nonprofit Finances entitled, “Finding the Best Altitude For Financial Oversight.” The authors point out that “inexperienced boards tend to work at the wrong altitude by focusing on details better left to staff….” (How’s that for “oversight”?) They offer a chart illustrating examples of what’s properly the board’s role (example: “use actual financial data for planning, oversight, and evaluation”) versus the domain of staff (example: “develop a diversified fundraising plan reflecting budget goals and organizational needs”).

For more insights from these authors on the board’s financial oversight role, we share this author interview with our readers.

3. Avoiding trouble (aka “legal compliance"). While board members are not expected to know every law or regulation that applies to the operations of the nonprofit they volunteer for, it’s clear that making sure that the nonprofit does not violate any laws (or overstep its mission) is the board’s role. In fact, BoardSource includes legal compliance right at the top of its list of “What do boards do?” What if the board doesn’t know what legal obligations apply? As a fiduciary, the board is expected to either learn – or delegate that role to someone else (which then triggers the follow-through oversight requirement) so that the board can be assured that all the bases are covered. In order to be able to provide oversight in this area, boards should try to learn enough about the applicable legal requirements to ask the right questions, such as “Have we filed all the required annual filings with the IRS?” Fortunately, the IRS has improved its website in recent years so it’s relatively easy to research IRS requirements. For state law requirements, the National Council of Nonprofits’ network of State Associations offers board training and state-specific guidance about legal requirements for charitable nonprofits in their states. Reviewing basic legal requirements during board orientations is one way to prepare new board members for their legal compliance oversight role. But even with that background, some board members may not connect the dots between their own oversight responsibilities and the risks of non-compliance. Charity regulators are not shy about investigating the conduct of a nonprofit board, or even proposing their own list of “best practices” for nonprofit boards (such as this very long list of board oversight recommendations produced by Kentucky's Auditor of Public Accounts). When a legal requirement, such as filing annual reports with a Secretary of State, has been missed, this is a red flag for state regulators to investigate the overall conduct of the board, and that could spell a “heap of trouble” for the nonprofit. Consequently, board oversight for legal compliance needs to be taken seriously.

A board that is governing from a perspective of “Let’s follow-through, stay at the right altitude, and take the high road to stay out of trouble” is more likely to focus on how effective the organization is in addressing its stated mission. A board that takes its oversight role seriously is also more likely to spot issues that could spell trouble for the organization down the road – or around the next bend. When a board realizes that it is accountable for not only the “good,” but also “the bad, and the ugly,” that board is more likely to take its oversight role as a champion for the nonprofit’s mission and fiduciary for its assets seriously; those are the boards that will stay out of trouble.

We hope that these musings on the top three ways boards’ oversight keeps nonprofits out of trouble helps you find the right “altitude” for your own board’s oversight. Don’t forget to check the sidebar for more resources, including our invitation to attend a free webinar, Nonprofit Audits in a Nutshell, on March 28^th 3:30-4:30 pm (Eastern), sponsored by First Nonprofit Foundation. Jenifer Holland, a governance consultant with BoardSource, will address the board’s role in the audit process.Join us!

Free Webinar: Nonprofit Audits in a Nutshell
March 28, 2013 | 3:30 pm Eastern

From legal requirements to practical advice, this program is designed to give you background on everything you need to know about the independent audit process.

Register Today!

Support provided by:

The Human Effects of Sequestration's Cuts

Across the country, almost all nonprofits - even those without government funding - will be affected by sequestration's cuts. Whether through direct funding cuts, increased demand, or other factors, if your nonprofit's ability to serve your community is being impacted, please share your story with us through GiveVoice.org.

What We're Reading

Decisive - How to Make Better Choices in Life and Work, by Chip and Dan Heath

The Practitioner’s Guide to Governance as Leadership, by Cathy A. Trower

Oversight Resources for Boards

Ten Basic Responsibilities of Nonprofit Boards (BoardSource)

Board’s role in reviewing executive compensation (National Council of Nonprofits)

Cultivating a culture of accountability and transparency (National Council of Nonprofits)

More resources for boards on financial sustainability are available from our friends at the Nonprofits Assistance Fund, including theScenario Planning Worksheetwhich is a step-by-step guide to contingency planning that can help boards and staff make informed budget and management decisions based on different scenarios.

A tool that many boards, including the National Council of Nonprofits, have adopted for strategic decision-making is a variation on thisstrategy screen developed by La Piana Consulting.

Posted:

February 6, 2013

Diagnosis: Serious Illness.

Rx: Manage Expectations and Change the Culture

A new report on fundraising has uncovered a serious issue regarding the health of charitable nonprofits. Like the flu, it’s contagious, spread by mismatched expectations. But, unlike the flu, no immunization shot is available. Instead, staff leaders and board members who are anxious to avoid this debilitating condition can take some basic precautionary measures to recognize the symptoms and commit to re-thinking the organization’s culture.

Like influenza, the diagnosis and consequences can be quite serious: Let’s call it, “the Fundraising Flu.” When it hits, nonprofits are so weakened and fatigued that they lack the basic elements necessary to successfully raise money. We’ve all seen it happen. It starts with the germ of mismatched expectations, which leads to disappointment and frustration that weaken relationships and prevent a positive culture surrounding fundraising at the nonprofit.

Symptoms of the Fundraising Flu include:

Board members who expect executive directors to raise all the money.
Executive directors often don’t have a background in fundraising and view it as getting in their way of doing the “real work” of the organization, and therefore expect their boards and development directors to raise all the money.
Development directors who feel unsupported by executive directors and boards who are not engaged with fundraising activities.

Fortunately, we can now view the recent insightful report by CompassPoint, Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, as a physician's desk reference on the health of nonprofits. The report's prognosis is that charitable nonprofits large and small can suffer from this affliction. While examining the reasons why there is such high turnover and so many vacancies in the development director position throughout the charitable nonprofit community, the report recognizes that it’s more than just the germ of mismatched expectations that leads to Fundraising Flu. It’s also the absence of technology or strategic thinking. Indeed, almost a third of smaller nonprofits who responded to the survey – those with budgets of less than $1 million – reported that they did not have sufficient tools in place, such as either a database to track donor information – or a fundraising plan. In their weakened conditions, without technology or key staff, fundraising, delivery of mission, and eventually sustainability, all suffer.

Posted:

January 9, 2013

You’ve probably noticed that many charitable nonprofits have given their “annual reports” a make-over. We’re not referring to the annual corporate reports filed with the Secretary of State’s Office or the annual filing submitted to the IRS via the Form 990. We’re referring to the glossy, sometimes magazine-length, annual publication produced by many foundations and public charities to showcase their work and thank donors.

Driving some of this change is cost – shorter annual reports reduce printing costs and use less paper which is better for the environment. But perhaps more importantly, there is growing recognition of the need to meet readers where they are: online and with little time to read long reports. Kivi Leroux Miller advocates for a two to four page printed annual report (or shorter still - a postcard). VolunteerMatch opened eyes with its 2011 annual report, consisting solely of one long infographic! Since digital messages can dramatically showcase missions using video, animation, and audio clips, a growing number of nonprofits, such as the Salvation Army (see their 2012 Annual Report), have switched from a paper publication altogether and now publish their annual reports completely online. A second driver of change in annual reports is the need to add more value. Nonprofits are not focusing the annual report’s lens solely on past “history” – but instead are using annual reports to expose the viewer to the promise of ongoing impact.

Posted:

November 2, 2012

Understanding Donors: Put the shoe on the other foot

In the past year there has been widespread encouragement (in this newsletter and elsewhere) for charitable nonprofits to measure their performance, tell stories about their effectiveness, focus on impact, and explain why their work is vital to individuals and communities. These are all important ways to encourage support of charitable nonprofits, whether with monetary donations, pro bono expertise, or volunteer service. But there is another fundamental way that nonprofits can encourage public support: Ask the question, “What do our donors want and expect from us?”

If we fail to put the shoe on the other foot, we’ll miss an important perspective. As public charities, our sector’s work depends on understanding and meeting the needs of our public stakeholders. Just as voters all around this country soon will cast their ballots in the general elections, so too in the coming nine weeks of 2012 the majority of individual donors will “vote” with their wallets. The year-end giving season is upon us, so it’s time to think like our donors.

Donors like to feel connected. Many fundraising and marketing gurus, including Kivi Miller Leroux, in her excellent article for Guidestar, “Nine Clever Ways to Thank Donors,” point out that donors are eager for updates on progress. Donors want to feel a personal connection with those helped by the nonprofits they supported. Jeff Brooks recommends in his recent Guidestar article, “Why Long Fundraising Letters Outpull Shorter Ones,” to feel free to write longer updates and appeals rather than relying on short tweets or brief letters.

Posted:

October 3, 2012

Keeping Your Board in Good Shape

When volunteers agree to serve on a nonprofit board, they commit to “give their all.” But we all know that as time wears on, the real-life challenges of serving on a board can be draining. Just like professional athletes (and even weekend warriors), board members need the right conditioning, training, coaching, and recovery to maintain peak performance. A recent survey and report by BoardSource provides insights into the current practices and performances of nonprofit boards. For the 2012 edition of the Nonprofit Governance Index, BoardSource expanded its survey to include organizations and chief executive officers who were not members of BoardSource. This larger sampling increases the relevance of the report for nonprofit leaders around the country. The resulting benchmarks may be used by any nonprofit as “workout tips” to keep your board in shape.

Tips for top performance

Conditioning: Just as you wouldn’t attempt a 26-mile marathon without training or knowing the pathway, we shouldn’t expect (or want) board members to immediately hit the ground running in any direction. Instead, warm them up with a solid board orientation that introduces them to what they can expect – and what is expected of them. As reported in BoardSource's Nonprofit Governance Index 2012, there was a high correlation between boards that went through a structured board orientation process and those that the chief executives described as “very well informed” or “well informed.” We’ve posted tips and tools for board orientations on the Council of Nonprofits’ website along with other resources for developing strong boards. State Associations of nonprofits are terrific resources for board training, and many provide facilitators for board retreats. Also, the Principles and Practices and Standards for Excellence® promoted by State Associations are tailored for board members, and many include companion workbooks that serve as easy road maps to inform boards about “best practices.”

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