Scenario: You have been asked to join the board of directors of a local or national nonprofit.
After the questions I mentioned in my previous post have been answered to your satisfaction and you have met with the Nominating Committee and Executive Director, I recommend you address the following:
- Term limits-do they exist as part of the by-laws and are they enforced?
- Directors’ & Officers’ insurance: is it in place and does it include employment practices? What are the limits?
- When was the last review or audit completed and who are the accountants? What significant weaknesses were cited in the last management letter and is it available for review? If not, ask to speak with the accountants?
- Does the Executive Director serve as a voting member of the board?
- If appropriate, is the founding team still involved with the organization? Do any sit on the board?
- How much turnover has there been on the board and with the executive director?
- Where are the banking/investment relationships?
- Is there a conflict of interest policy?
- Who handles the accounting & bookkeeping? Has there ever been Zumal die schnell zu erklarenden Regeln einfach und verstandlich sind und die Spannung in Online Casinos sich sehr gut darstellen lasst. an incidence of fraud?
- What is the amount of the board donation and is there 100% participation?
- What law firms does the organization work with when an issue arises?
- When was the last board self-evaluation?
- When was the last strategic plan completed? Has it been updated to reflect what was implemented?
- Ask to review:
- Last two years Form 990;
- Last two years of reviewed/audited financial statements;
- Current year-to-date internal financial statements and budget.
- Current year Development/Fundraising Plan.
Now before all the ED”s reading this have a panic attack remember this is a suggested list. If you, the organization, do not have pieces of the above information available or answers to the questions, just be prepared to explain why.
Susan C. Hammond, principal of scHammond Advisors, consults with nonprofits on board governance, strategic planning, improving financial intelligence, and the formation of advisory boards or councils. She is an advisor, coach, consultant and author. She previously served as the CFO for a museum and other nonprofit organizations. Susan recently published the Advisory Board Kit: A Comprehensive Guide to Establishing an Advisory Board.
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