Is the Board's Responsibility to Fundraise?

Ultimately, the board of directors responsibility is to provide oversight for the organization. Realizing that I could take several pages to describe “oversight,” I will spare you. Certainly, for the state of Minnesota, you could look to the Attorney General’s office for the “Fiduciary Responsibilities of Board members of Nonprofit Organizations.” The question that often is asked however,  relates to the role of the board as it pertains to fundraising.

The role of the board, as a governing body, is to develop the policies and plans for how an organization will raise its funds to operate. When it comes to fundraising, board members have a responsibility to become personally involved and support the mission for which they serve in another capacity (the board). In doing so, a board member becomes a “volunteer” wearing a different hat, so-to-speak. If the organization is an all-volunteer organization, board members will find themselves much more involved in implementing the strategies of the board.

The ultimate responsibility to fundraise, is the staff’s responsibility. The board’s responsibility is to ensure that there are adequate resources to carry the mission forward. In that regard, it may require board members to be involved in various ways. There are many resources to learn more about this topic. Some of them include : BoardSource, GuideStar, an article from Kim Klien and more.

Kathy Grochow, NRS, St. Cloud

Reaching the Limit

Earlier this month I attended my last meeting as a board member of Hunger Solutions Minnesota. Along with two other board members, I was recognized for serving two three-year terms for this nonprofit agency. I appreciated the opportunity to contribute to the governance of Hunger Solutions, and the years of monthly -- later changed to bi-monthly meetings -- passed quickly. Here I was experiencing personally the concept of board term limits as we had approved years earlier in Hunger Solution's by-laws.

Should nonprofit boards have term limits? This is a question that often gets asked in board trainings and board involvement discussions. David Styers, Senior Governance Consultant with BoardSource addressed the topic as part of a recent BoardSource Webinar , "Introduction to Board Service." Styers says that every board needs to decide if term limits are important to outline in their bylaws. "If you have term limits," he says, "make sure you enforce them."

Two-thirds of boards have term limits of some sort. The most common model, according to Styers, is the model we adopted at Hunger Solutions with two three-year terms; six-year limit. Many organizations also allow that board members can be considered for service again after being off the board for one year.

Did you know also that Minnesota Statutes outlines that if a nonprofit organization's articles or bylaws do not provide for a fixed term, then the term is one year. Additionally, the statute provides that a director's term may not exceed 10 years.

Lois Schmidt, NRS, Willmar

The Impact of Form 990

With substantial changes to Form 990, the IRS is taking a strong position related to good board governance and want to know what policies are in place as well as the processes for reviewing these policies. Good governance includes an engaged, informed, and independent board; defined policies and practices; and transparency.

The impact that the increased transparency will have on nonprofit organizations has been severely underestimated. It is not sufficient for nonprofit staff and board members simply to be made aware of these changes. They must also be alert to the changes' strategic implications and have tools to manage them successfully. The key to strategic use of the new reporting requirements lies in nonprofit organizations' governance practices.

Bremer and the Center for Nonprofit Excellence & Social Innovation (CNESI) have teamed up to provide a series of Board Governance training sessions in 2010 with the first session scheduled for January 14th (11:30-12:30 pm. or 5– 6 p.m.) located at the Bremer Bank, downtown St. Cloud location. With registration of at least four sessions, your organization is eligible for up to three hours complimentary consulting from CNESI. For more information or a brochure, contact Kathy Grochow at kdgrochow@bremer.com.