Board of Directors Board of Directors IssuesIssues

Mark Lassman-EulMark Lassman-Eul

CB ODCCB ODC

Mlassman-eul@habitat.orgMlassman-eul@habitat.org

Three Common Issues with Three Common Issues with Habitat for Humanity BoardsHabitat for Humanity Boards

At Least IMHO:At Least IMHO:

Board Members Don’t Know Board Members Don’t Know What is Expected at Their What is Expected at Their AffiliateAffiliate

Board Members Don’t Know Board Members Don’t Know What Nonprofit Boards are What Nonprofit Boards are Supposed to DoSupposed to Do

Board Meetings Talk About the Board Meetings Talk About the Wrong Things; Or There Is No Wrong Things; Or There Is No Talk at AllTalk at All

BOARD MEMBERS DON’T BOARD MEMBERS DON’T KNOW WHAT IS EXPECTEDKNOW WHAT IS EXPECTED

In Many Affiliates…In Many Affiliates…

Some Helpful Tools and Some Helpful Tools and Practices:Practices:

Having a Written Board Contract Having a Written Board Contract and/or Expectationsand/or Expectations

Discussing Expectations in the Discussing Expectations in the Recruiting ProcessRecruiting Process

Having a Board Orientation for Having a Board Orientation for New (and maybe old) MembersNew (and maybe old) Members

Assigning an Experienced Assigning an Experienced Board MentorBoard Mentor

Things to Be CoveredThings to Be Covered

Meetings- Attendance, Where, Meetings- Attendance, Where, When?When?

Meeting Preparation?Meeting Preparation? Committee Work?Committee Work? Attendance at Events- which Attendance at Events- which

events, how many?events, how many? Making a giftMaking a gift Participating in Fund-RaisingParticipating in Fund-Raising

It’s NOT helpful to have It’s NOT helpful to have people guess….people guess….

BOARDS DON’T KNOWBOARDS DON’T KNOW WHAT THEIR JOB IS WHAT THEIR JOB IS

In MANY nonprofits….In MANY nonprofits….

This is confused even further This is confused even further in Habitat becausein Habitat because

Some board members are also Some board members are also founders.founders.

Some board members are also Some board members are also on committees.on committees.

Some board members are also Some board members are also volunteers in the office, volunteers in the office, construction site or ReStoreconstruction site or ReStore

Board members forget what hat Board members forget what hat they are wearingthey are wearing

REAL Duties (from Stoesz REAL Duties (from Stoesz and Raber)and Raber)

SET THE GOAL AND SET THE GOAL AND VISIONVISION

How many houses will we do?How many houses will we do? Are there other ways to help Are there other ways to help

families? (repairs, families? (repairs, weatherization, rehab, classes?)weatherization, rehab, classes?)

Do we have a broader vision?Do we have a broader vision? Who needs to be involved?Who needs to be involved?

REAL DutiesREAL Duties

DELEGATE THE WORK DELEGATE THE WORK TO BE DONETO BE DONE

What will the board do?What will the board do? What will committees do?What will committees do? Do we have functioning Do we have functioning

committees?committees? Do we want or need other staff?Do we want or need other staff?

Delegation includes:Delegation includes:

Setting time linesSetting time lines Setting limits; you can use policySetting limits; you can use policy Defining reportingDefining reporting THEN: LETTING THE STAFF THEN: LETTING THE STAFF

OR COMMITTEE WORK!!!OR COMMITTEE WORK!!!

Boards with staff can’t be Boards with staff can’t be managersmanagers

New Staff Always Shake Up New Staff Always Shake Up Delegation PatternsDelegation Patterns

New reporting has to be figured New reporting has to be figured outout

Who does the E.D. report to- Who does the E.D. report to- has to be one person!has to be one person!

Everyone else reports to the Everyone else reports to the E.D.E.D.

Operating committees will lose Operating committees will lose some controlsome control

REAL DutiesREAL Duties

RAISE and MANAGE RAISE and MANAGE MONEYMONEY

EVERYONE is on fund-raisingEVERYONE is on fund-raising Make a contributionMake a contribution Work your connections for HabitatWork your connections for Habitat Have rules for using moneyHave rules for using money Safeguard your funds!-There must Safeguard your funds!-There must

be checks and balances!!be checks and balances!!

REAL DutiesREAL Duties

EVALUATE and CHANGEEVALUATE and CHANGE Keep what workedKeep what worked Change what didn’tChange what didn’t Look at the house you build, your Look at the house you build, your

selection policies, your family selection policies, your family support EVERY timesupport EVERY time

Can we help other families, other Can we help other families, other ways?ways?

Public RelationsPublic Relations

Make sure Make sure everyone everyone knows knows what you’re doing, and cultivate what you’re doing, and cultivate relationships with:relationships with:

Media Homeowners/

Prospective homeowners

Donors Volunteers

Gov’t agencies Vendors HFHI Future board members Other non-profits

BOARDS DON’T TALKBOARDS DON’T TALK ABOUT THE RIGHT STUFF ABOUT THE RIGHT STUFF

In many, many, many affiliatesIn many, many, many affiliates

GREAT movieGREAT movie

Long though, maybe too long, like many board meetingsLong though, maybe too long, like many board meetings

So What IS the Right Stuff?So What IS the Right Stuff?

Not trying to beNot trying to be

Tricky here..Tricky here..

GoalsGoals VisionVision Delegating Delegating CheckingChecking MoneyMoney MoneyMoney Fund-RaisingFund-Raising EvaluationEvaluation PoliciesPolicies

Instead of:Instead of:

Day to DayDay to Day House DetailsHouse Details Family Payment detailsFamily Payment details House DesignHouse Design Things that Already Things that Already

HappenedHappened

At the very least, board At the very least, board meetings should involve meetings should involve DISCUSSIONDISCUSSION Every year’s board should ADD Every year’s board should ADD

VALUEVALUE That means actually solving That means actually solving

some problem, perhaps making some problem, perhaps making some policysome policy

You have brought all these You have brought all these different people together- USE different people together- USE THEMTHEM

Pretty typical HFH board Pretty typical HFH board meeting:meeting:

Devotions (listen)Devotions (listen) Minutes (listen)Minutes (listen) Treasurer’s report (listen)Treasurer’s report (listen) ED report, long (listen)ED report, long (listen) Committee reports (listen)Committee reports (listen) Old business (listen)Old business (listen) New business (maybe talk, but New business (maybe talk, but

we are out of time!)we are out of time!)

That’s worse than being in a That’s worse than being in a Board (Bored) WorkshopBoard (Bored) Workshop

A Possible AlternativeA Possible Alternative

Participatory Devotion- Share a Participatory Devotion- Share a Good Habitat MomentGood Habitat Moment

MinutesMinutes Treasurer’s ReportTreasurer’s Report 40 minute discussion, ISSUE of 40 minute discussion, ISSUE of

THE MONTH- everyone talks THE MONTH- everyone talks (perhaps no conclusion)(perhaps no conclusion)

Quick update on what’s hotQuick update on what’s hot QuestionsQuestions

I might go to that, might even I might go to that, might even pay attention!pay attention!

If Your Board Members Don’t If Your Board Members Don’t Come to Meetings and Don’t Come to Meetings and Don’t ParticipateParticipate It might be your affiliate’s fault.It might be your affiliate’s fault. Is there any reason to attend?Is there any reason to attend? Do you ask board members to Do you ask board members to

participate? Really?participate? Really? If not, why waste all those If not, why waste all those

people hours?people hours?

There are two kinds of There are two kinds of committees, at least:committees, at least: BOARDBOARD Board work, Board work,

board membersboard members PersonnelPersonnel PlanningPlanning FinanceFinance Nominating and Nominating and

Board educationBoard education

OPERATINGOPERATING Do affiliate workDo affiliate work Non-board Non-board

membersmembers BuildingBuilding SelectionSelection FundingFunding Essentially serve Essentially serve

as additional as additional staffstaff

Guidelines for Operating Guidelines for Operating CommitteesCommittees

4-5 people per committee4-5 people per committee

Not all board Not all board membersmembers

Chair doesn’t have to be board Chair doesn’t have to be board membermember

Board member can be board Board member can be board liaisonliaison

How Boards SucceedHow Boards Succeed

Success Factors:Success Factors:

Effective Nominating CommitteeEffective Nominating Committee Members who Understand Members who Understand

Organization and Their Role In ItOrganization and Their Role In It Planned RotationPlanned Rotation Effective Way of Eliminating Effective Way of Eliminating

Non-Productive MembersNon-Productive Members Sufficient SizeSufficient Size Active CommitteesActive Committees

Success Factors:Success Factors:

Planned Orientation for new and Planned Orientation for new and old membersold members

Long-range strategic planLong-range strategic plan Process for self-evaluationProcess for self-evaluation Know and Use BylawsKnow and Use Bylaws Productive Meetings that Productive Meetings that

actually discuss and actually discuss and SOLVE problemsSOLVE problems

Recruit, RecruitRecruit, Recruit

EVERY board or committee EVERY board or committee person should share at least person should share at least ONE goal:ONE goal:

Help recruit your replacementHelp recruit your replacement Takes lead timeTakes lead time CareCare CultivationCultivation

Tips for Tips for Enhancing Your Contribution as a Enhancing Your Contribution as a

Board MemberBoard Member

1. Be Business-like1. Be Business-like

But balance with “Habitat But balance with “Habitat culture”culture”

2. Learn All You Can2. Learn All You Can Habitat’s Global WorkHabitat’s Global Work Affiliate OperationsAffiliate Operations

3. Be Alert and Active3. Be Alert and Active

Participate activelyParticipate actively Prep for meetingsPrep for meetings Pay attentionPay attention Ask questionsAsk questions Get answersGet answers Present ideasPresent ideas

4. Identify and Cultivate 4. Identify and Cultivate RelationshipsRelationships Who do you know that might Who do you know that might

support Habitat as volunteer, support Habitat as volunteer, donor, leader?donor, leader?

5. Work as a Team5. Work as a Team Garner support for ideas before Garner support for ideas before

meetingmeeting

6. Be Open-Minded6. Be Open-Minded

Listen to suggestions and ideas Listen to suggestions and ideas of others of others

7. Be Visible7. Be Visible Build sites, fund raisers, public Build sites, fund raisers, public

events events

8. Follow Through on 8. Follow Through on CommitmentsCommitments

A successful affiliate requires A successful affiliate requires committed leadershipcommitted leadership

If you commit, deliverIf you commit, deliver If you can’t commit, don’tIf you can’t commit, don’t Your affiliate may want to define Your affiliate may want to define

exactly what the commitments exactly what the commitments areare

9. Educate New Board 9. Educate New Board MembersMembers Orientation process and materials for Orientation process and materials for

all new membersall new members Habitat books and materialsHabitat books and materials Mentor new membersMentor new members

10. Avoid Conflicts of Interest10. Avoid Conflicts of Interest Beware of “self-dealing”Beware of “self-dealing”

11. Ensure Accountability11. Ensure Accountability

Recipients and recorders of affiliate Recipients and recorders of affiliate income should not disburse itincome should not disburse it

Two signatures on checks above Two signatures on checks above certain dollar amountcertain dollar amount

Accounting procedures beyond Accounting procedures beyond reproachreproach

Regular outside audits, financial Regular outside audits, financial statementsstatements

Annual Report to donors and Annual Report to donors and supporterssupporters