While it’s a kind of a boring topic, having clear guidelines and a direction for your board and staff in an organization is critical for success. In this episode of the Strategic Nonprofit Podcast, host Trista sits down with the CEO of AMC Governance Solutions, Tom Abbott, to discuss the importance of director and staff manuals. Alongside what they should both include to be helpful and valuable documents to the organization.

Directors Manuals help directors meet their responsibilities as governors of the NPO. It includes policies related to how the board manages itself and how it governs the organization for which it is responsible.

Staff Manuals describe in detail how staff accomplish various tasks in the organization alongside detailing the approved policies that staff must understand and apply.

For directors, their manual is often a manageable document that deals primarily with matters of immediate interest and importance to them in their governance role. Ultimately, each director will be able to read it thoroughly and use it as a day-to-day governance tool.

The problem, though, is that quite often, especially in smaller organizations (large organizations are guilty of this as well), there’s only one staff person (Execute Officer, ED or CEO) with all that information trapped in their head. In some ways, they become indispensable; maybe even from an ego perspective, they feel irreplaceable.

But that’s not coming up with a succession or a continuity plan for the association. A major issue considering that the executive director and chair won’t be there forever -so where’s the continuity?

As they start adding people to their organization in the office, where’s that knowledge transfer? How are you documenting this?

The basic answer to this question is that two different manuals help reinforce the distinction between governance and administration functions.

For example, there are many things that the NPO directors must do that the administrators don’t. More so, there are many things that the administrators must do that the governors need not concern themselves with.

This section details who we are, what we do, who we serve, and general background information about the organization, e.g. details of founding members, past successes and challenges. This information helps directors understand why the organization is where it is in its current development.

To build on the last section, this section provides guidance to directors about issues the organization is facing and the organization’s plans for the future.

One of the most vital parts of the manual is how the organization has structured its governance and management functions. This section describes:

This section of the director’s manual contains all board-approved policies of the organization related to the directors and the CEO. For example:

This section contains all board-approved policies of the organization related to the operations of board committees and board task forces, including committee/task force conflict of interest guidelines.

This section contains the organization’s formal constitution and bylaws, plus legal documents related to any not-for-profit businesses, foundations, or other sub-organizations for which the board is responsible.

An overview of the volunteer organization and an updated contact list. It includes a list of the chairs and members of the board committees and task forces.

This section provides an overview of the staff organization and an up-to-date contact list.

Included here are the terms of reference for all board-approved committees and task forces. It also lists the chairs and members of the board committees and task forces.

Directors’ Manuals conclude with a compilation of the minutes of recent board meetings. This last section generally contains a year of meeting minutes and a space for directors to add more as the year progresses.

The staff manual is designed and used by the CEO and staff. Yet the responsibility for its creation and maintenance rests solely with the CEO.

The Staff Manual includes two distinct sections related to policy:

This section would contain, for example, detailed information about:

This list often replicates word-for-word the policies approved by the board and listed in the Directors’ Manual.

The staff has to be aware of these policies to develop appropriate staff policies and administrative procedures, all of which have to be created within the scope of policies defined by the board.

If you haven’t already, start to document things, and get everything out of your head.

Most organizations rely too much on the CEO’s knowledge, wisdom and experience. That’s why you must ensure that your organization is documenting things and thinking ahead to things like continuity, succession planning and scalability.

When you start adding people to the team and adding people to the board, how’s that transfer of knowledge and that onboarding process and the orientation?

How smooth is your board able to hit the ground running? Are your staff, your employees, able to hit the ground running?

Overall, start with documenting everything and then separating it into those two distinct manuals.

An efficient board starts with the implementation of an effective governance model. 

AMC’s governance training helps nonprofit boards navigate governance and management to stay focused on their organization’s mission and visions. It includes valuable tools and clear guidance to address many not-for-profit organizations’ governance challenges.

Join NPO Academy’s Online Board Governance Training and implement the Complementary Model of Board Governance to build an effective partnership between the volunteer board, CEO and staff.

The post Importance of Director & Staff Manuals for Effective Board Orientations appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

A lot can and has changed in the past few years, especially after the pandemic. Now, many organizations are wondering how to create or update their nonprofit bylaws to reflect their current needs.

In this episode of the Strategic Nonprofit Podcast, join host Trista as she meets with the CEO of AMC NPO Solutions, Tom Abbott, to discuss everything organizations need to know about developing effective Nonprofit Bylaws. That’s why below, we’ll be exploring what nonprofit bylaws are, how they work and why you need them for growing a successful organization.

Also read:

• How To Update Your Nonprofit’s Code Of Ethics
• A Simple Guide To Creating Your Nonprofit Organization Bylaws
• Beyond Carver: The Complementary Model of Board Governance

Nonprofit Bylaws are lengthy documents that outline your organization’s general operational rules. Overall their purpose is to guide board members, staff and volunteers on how to conduct themselves daily in the association.

For example, bylaws can be about:

• Categories of membership
• Rules for member meetings (including the Annual General Meeting (AGM)
• Rules for board meetings
• General duties of Directors

Chances are, your bylaws are outdated, especially after the COVID-19 pandemic. Much has changed, and you probably haven’t had a chance to review them for years.

Unfortunately, this means they may reference out-of-date technology like fax machines, neglect to structure virtual board meetings, use the word ‘he’ throughout generally don’t reflect the latest provincial and federal requirements.

That’s why it’s necessary to review and update your bylaws regularly.

Most boards haven’t actually reviewed their nonprofit bylaws since incorporation. That’s why we suggest organizations ideally should take a good look and review nonprofit bylaws every two to three years. However, if you’re still not sure if it’s the right time to review your bylaws, here are clear indicators it’s time to update your bylaws:

• Can’t tell if your bylaws comply with provincial and federal requirements
• Don’t know when your bylaws were last updated
• You know your nonprofit bylaws still reference outdated technology or terminology
• Instead of being a helpful tool, they are getting in the way or holding your back

Overall, although there is no official standard for reviewing your bylaws, every two years is the recommended benchmark for ensuring they accurately reflect the organization’s inner workings. As a result, you’ll ensure your nonprofit bylaws remain relevant to what you’re trying to achieve.

Organizations that neglect to update or create effective nonprofit bylaws risk harming the foundation of how their entire organization functions. Doing so puts the board, individual members and the organization at great legal risk. Something that insurance likely won’t cover.

Ultimately, this approach encourages a breakdown in the organizational hierarchy. Creating an environment where any member of the nonprofit is essentially free “to do as they please.” As a result, organizations risk looking like they’re “rigged” or unethical and quickly lose constituents and local community support.

To get the best results from a nonprofit bylaw review, we recommend our three-step bylaw review process, starting with a detailed consultation to understand the needs and current situation of the organization. Then proceeding to receive our recommendations based on modern best practices and the latest compliance with provincial and federal regulations. Let’s explore how this works in more detail:

First, we conduct an initial consultation that allows us to understand the needs and advancements in your organization. That way we can help update the bylaws to reflect your nonprofit’s current and most pressing needs. 

Next, the bylaw audit process is where we analyze your bylaws including the nominations process, nomenclature, terms of office and more. Overall, we look for items that need to be updated or included. 

Lastly, we deliver a final report with recommendations for updating bylaws for modernization and compliance. We present this in an easy-to-follow format that allows board members to see and approve the changes we recommend.

Organizations engage AMC for Nonprofit Bylaw Reviews because we’re nonprofit specialists, having worked with over 450 organizations across Canada since 1987.

We update the bylaws of multiple nonprofits every year, so you can be sure that we’re up to date on the latest requirements, regulations and evolutions when it comes to bylaws.

The post Nonprofit Bylaws: What They Are, How They Work & Why You Need Them appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

In this episode of the Strategic Nonprofit Podcast, join host Trista as she meets with the CEO of AMC NPO Solutions, Tom Abbott, to discuss how nonprofit organizations can begin developing and monitoring their strategic plan.

Also read:

In the Complementary Model of Board Governance, the Board is responsible for developing, creating, thinking about and articulating the strategic plan.

Whereas some models like the Carver Model put the responsibility of developing the strategic plan with the Chief Staff Officer, the CEO, or the Executive Director. A huge mistake, in Tom’s opinion, for a few reasons:

Legal liability: The board of directors are legally responsible for the organization’s management and governance. This means they are responsible for the direction that the organization goes. Thus, they need to develop a strategic plan in the absence of that.

Boards provide insights: The board and organization should be working in coordination. While the ultimate decision as to what those strategic goals and objectives are lies with the board, senior management has boots on the ground, knows what’s going on and can provide plenty of helpful information. 

Let’s explore the responsibilities and roles of those responsible for creating the strategic plan in further detail below:

If at least 90% of the directors can’t attend the strategic planning session, then you must postpone the session. That’s because the strategic planning session is one of the most important activities your board will undertake during its term. If attendance is low, so will the value of the outcome.

Senior staff should also participate fully in the discussions and debates.

After all, the senior staff will develop the subsequent operational plans and budgets and then work on implementing the strategic plan daily. In addition, their participation and input will add an essential operational perspective to discussions.

However, the participation of senior staff should not eclipse the board’s decisions. For instance, staff should not “vote” on any aspect of the strategic plan.

Many nonprofit organizations engage the services of an experienced external facilitator to coordinate the process and mediate the strategic planning session. Overall, this method has the following benefits:

While the strategic plan is “owned” by the volunteer board, it is the staff’s responsibility to implement the plan to the best of their ability, regardless of their view.

The first key element in the planning process should be articulating why your organization exists with a clear, concise, and inspiring statement that declares what it is about, what it does, for whom and where.

Generally, the Mission Statement should be short enough to be reproduced on your website and letterhead, framed and displayed throughout your organization, or even printed on a T-shirt.

Overall, your organization’s Mission Statement should be the gauge against which your organization measures the success of every activity.

Typically, four or five goals will be the most that any organization can realistically hope to focus on and work to accomplish over the next few years.

When you have decided upon your four or five goals, you must turn your attention to establishing specific objectives that support each of the goals.

While this is a standard procedure at most strategic planning sessions, in some organizations, the task of developing specific objectives will be delegated to staff or committee(s).

Now determine timelines for completion of the work, alongside a time frame for progress reports to the board.

While it may not be possible to determine when each goal and objective can be accomplished in every case, at minimum, the board should decide when it would receive progress reports on the status of the work. For instance, the directors may determine that progress reports be submitted at every board meeting.

More so, during the planning session, the board must decide how to measure success. For this reason, it is essential to establish a quantifiable measure of success.

Don’t let your planning session end without assigning whose responsibility it is for accomplishing each goal and objective; either to an individual or a committee.

Doing so will establish an accountability framework that will increase the probability of successfully achieving your goals and objectives.

With so much activity in your organization, your board will struggle to keep up with everything. As such, the last element of the strategic planning process is establishing a monitoring mechanism to assess how well the organization is progressing in meeting its objectives, goals, and mission.

AMC’s skilled strategic planning facilitators can help you navigate complex issues and build the transformative plan you need for success.

Whether you have a specific goal, troublesome problem or a new exciting opportunity you need assistance navigating -AMC’s customized strategic planning sessions will help.

Contact us today to learn how AMC’s Strategic Planning facilitators can help your organization develop, improve, and grow.

The post A Guide To Developing & Monitoring The Strategic Plan For Nonprofits appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

All nonprofits have a clear mission to achieve. Still, the process of achieving it isn’t as black and white as it seems. Setting ethical standards for your nonprofit is an important task. Yet it takes much consideration. So when reviewing your ethical guidelines, here are some factors to consider. Join us in this episode of the Strategic Nonprofit Podcast. As host Trista sits down with the CEO of AMC NPO Solutions, Tom Abbott. Listen in as they discuss the importance of setting ethical standards. Including a breakdown of three different types with examples.

Also read:

By setting ethical standards for the nonprofit organization, the board advises both the directors and staff on what is necessary from them in terms of their being and position. In general done by the board, who develops and approves the director’s code of conduct, a CEO code of conduct, and a conflict of interest policy.

Overall, setting ethical standards helps your board members and staff conduct themselves honestly and with integrity.

In general, established NPOs should review their codes of conduct, codes of ethics, and conflict of interest policies every two years. As a result, you can ensure you’ll earn and keep the public’s trust.

Also read: To Obtain the Best Possible Performance, Read This Nonprofit Board Policy Manual Carefully and Thoroughly

However, setting ethical standards for new nonprofits starts by developing and approving a Mission Statement, Vision Statement, Values Statement (Code of Ethics), a Director’s Code of Conduct, a CEO Code of Conduct, and a Conflict of Interest Policy. Discover some examples of nonprofit ethical standards below:

Here are some examples of possible clauses you would include in a director’s code of conduct, a CEO Code of Conduct, and a Conflict of Interest Policy:

A great next step is to look at if you have a concise conflict of interest, guideline or policy. So, if you don’t, it’s time to start building one. Reach out to us for some templates to start!

An efficient board starts with the implementation of an effective governance model. 

AMC’s governance training helps nonprofit boards navigate governance and management to stay focused on their organization’s mission and visions. It includes valuable tools and clear guidance to address many not-for-profit organizations’ governance challenges.

Join NPO Academy’s Online Board Governance Training and implement the Complementary Model of Board Governance to build an effective partnership between the volunteer board, CEO and staff.

The post A Guide To Setting Ethical Standards For Your NPO appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

All nonprofits have concrete reasons for existing, but many still struggle to receive the attention their mission deserves online. In this episode of the Strategic Nonprofit Podcast, host Trista sits down with Eric Ressler to discuss the importance of designing nonprofit communications in a way that catalyzes change, increases social impact and enhances your digital activism efforts.

Also read:

• A Guide To Social Media for Nonprofits: Impact With A Low Budget
• Using a Nonprofit Network to Increase Social Impact
• Optimizing Nonprofits’ Websites for Accessibility and Funding

An attention economy is the collective human capacity to engage with the many aspects of our environments that require mental focus. Overall, an attention economy acknowledges that the human capacity for attention is limited and that the information for that attention exceeds the capacity.

In simple terms, so much of our knowledge, communication, and connections happen through digital channels. Now, information has become more easily accessible to more people through these digital channels. The scarcity is no longer access to information. More so, the scarcity is access to our attention and sustained attention.

For example, information overload and overwhelm, especially on mobile devices and other digital devices we use to communicate. This kind of feeling of a very noisy environment has all sorts of implications for our lives as individuals. Not just in terms of our personal or professional lives, but as it relates to social impact organizations.

How can you capture people’s attention? Get your message, story and ask across to them in a way that’s meaningful and sustained over time.

At a fundamental level, it’s about having a clear set of values that drive your work, a clear mission and vision for the organization and what you’re doing because everything stems from that. More so, designing communications for your NPO requires thinking deeply about the following several critical elements:

• Theory of Change: Consider your theory on how you’re actually going to affect change in the problem you see. Then being really clear about that. So that you can explain it to someone outside of the space in a couple of minutes, like an elevator pitch.
• Brand Identity: To stand out from other nonprofits in the space from a visual standpoint (fonts, colours, logo, imagery), you must develop a cohesive brand identity.
• Advertising Channels: Whether that’s social advertising, magazine placements, radio commercials or podcasts.

Eric Ressler is the founder and creative director of Design by Cosmic. Eric has extensive expertise in brand development and digital strategy development and execution for profit-driven companies and social impact organizations. Over the years, he has delivered complex web and brand projects for national, international, and local brands. Overall, he constantly explores new ways to use design and technology to help clients build awareness, increase engagement, get more donations, and reach their goals.

AMC’s skilled strategic planning facilitators can help you navigate complex issues and build the transformative plan you need for success.

Whether you have a specific goal, troublesome problem or a new exciting opportunity you need assistance navigating -AMC’s customized strategic planning sessions will help.

Contact us today to learn how AMC’s Strategic Planning facilitators can help your organization develop, improve, and grow.

The post Designing NPO Communications To Catalyze Change & Digital Activism appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

If you have questions about strategic planning such as, “how should we arrange? who needs to get involved? what should we cover?” this episode of the Strategic Nonprofit Podcast is for you. So, join host Trista as she meets with the CEO of AMC NPO Solutions, Tom Abbott, to discuss the nonprofit strategic planning process.

Also read:

Strategic planning is the leadership function of articulating why an organization exists. Consequently done by setting strategic goals that will enable the organization to move towards fulfilling its reasons for existence. It also includes establishing time phase plans that will identify measurable results for meeting those strategic goals and determining who’s responsible for them.

Corporate stakeholders markedly measure success by looking at the profit generated by publicly traded companies. As a result, the measurement of success links to the share price of the firm’s stock. But in NPOs, there’s no share price or profit. That’s because it’s not the purpose of the organization. So success measurement methods standard in the corporate world is both unusable and inappropriate. As a result, strategic planning is vital for governing, managing, and monitoring an NPOs performance.

In general, whatever method you use to complete your strategic plan can vary. However, regardless of the method, the roles of the board and the staff are generally constant. That’s also why you need to start strategic planning by looking at what your board, staff and CEO should be doing and comparing it to what they are doing.

A successful and comprehensive strategic planning process will: 

Also read: Why Mission Statements For Nonprofits Matter Most

Read Next: A Guide To Developing & Monitoring The Strategic Plan For Nonprofits

AMC’s skilled strategic planning facilitators can help you navigate complex issues and build the transformative plan you need for success.

Whether you have a specific goal, troublesome problem or a new exciting opportunity you need assistance navigating -AMC’s customized strategic planning sessions will help.

Contact us today to learn how AMC’s Strategic Planning facilitators can help your organization develop, improve, and grow.

The post Nonprofit Strategic Planning: The Planning Process appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

Finding, recruiting, and retaining dedicated board members in the NPO world is not as straightforward as some would hope. Often a costly mistake for organizations just trying to achieve their mission. Join us in this episode of the Strategic Nonprofit Podcast. As host Trista sits down with NPO consultant Linda Lysakowski, ACFRE. Listen in as they discuss how to find, recruit and retain dedicated NPO board members that will help you achieve your mission.

Also read:

• Nonprofit Board Recruitment: How To Find Successful Board Members
• 7 Qualities All Great Nonprofit Board Members Have
• The Role of Nonprofit Governance Committees

It’s the board’s responsibility to find new board members. Although, in many NPOs, it seems to fall to the executive director, which Linda thinks is a mistake.

For example, many executive directors take it upon themselves to find new board members. However, this is sometimes really to the detriment of the organization. Because they’re stacking the board with people they know are going to agree with them for everything.

First of all, organizations need to consider “What are the needs of this board?” Do they need to grow in size? If so, they need to diversify. And when we say diversify, we don’t mean just ethnic diversity. That’s very important. Although it’s becoming more and more important, there’s also the diversity of age, gender, and even geographic diversity.

If your organization covers a regional or national, or statewide population, you need to serve that whole population. So this governance committee should be working year around it.

Next, identify who do we need on this board? What are the skills and talents that we’re looking for? For example, you would never hire a staff person by running into someone and saying, “Oh, they seem like a good person.”

Unfortunately, a lot of organizations do this to engage board members. Yet this person doesn’t know anything about the organization. You don’t know anything about them. And suddenly, you’re in this partnership where they’re a board member, and they don’t understand their role. More so, you don’t know what their skills and talents are. So it needs to be a very thoughtful process that ideally should occur year-round, not just in September, October or worst of all, December.

Unfortunately, some organizations do not include community members. Yet, you really need to get community members involved because the committees are the best training ground for a good board member.

Because once a person serves on a committee, they get to know your organization better. And most importantly, you get to know them better. Do they show up at meetings? Do they accept jobs and carry through on those tasks they said they would do? Are they people who just want their name on a committee and don’t want to get very involved? They don’t attend meetings. But, if they’re not engaged on the committee, they’re certainly not going to be involved when they serve on your board.

So having solid committees that include a lot of community people is the best way to find new board members.

First of all, it’s identifying potential board members and that can come from any of your board or even from staff members. I had clients whose staff members have suggested people for the board, but they. Get vetted first by this governance committee. And they look at, well, we have three slots open and maybe we have seven names.

So who are the best three people out of those seven that meet the criteria that we’re looking for that have the skills and talents we’re looking for? And maybe add to some diversity in the form of, as we said, ethnic gender age, geographic diversity, and. As to the governance committee that selects the top people, but then you should always meet with these people in person and interview them just as though you were interviewing a staff person to be hired and find out.

There’s no point in having a job description. If you’re not going to expect board members to live up to that expectation.

What their expectations are, what do they expect from serving on the board let them know what your expectations are? And so many times I think people kind of soft-pedal this. Like they might have a job description that they handed this potential board member. And I’ll hear them. I guess I’ve sat in on some of these meanings myself and I’ll hear things like, well, I know it says here that you have to give a certain amount of money or you have to attend a certain amount of board meetings, but don’t worry about that.

We just want you on the board and you’re pretty much telling them that you’re not going to hold them to that. And I always say, if you’re not going to hold them to anything, then take it out of your job description because. There’s no point in having a job description. If you’re not going to expect board members to live up to that expectation.

The best way to retain your newly found board members is to provide a thorough and engaging orientation that sets expectations. As a result, the chair of the board, executive director, chair of the recruitment committee, and any other relevant leadership should all be present.

You have to educate them about your organization. If there’s something going on in your organization, they really need to understand that.

Ideally, the chair of recruitment should create a presentation for board orientation that covers:

• The mission, vision, purpose and framework of operations
• Organizational structure
• Voting procedures
• Current projects
• Overall strategic direction
• Financial overview
• Expectations
• Meeting schedule

Linda is one of slightly more than one hundred professionals worldwide to hold the Advanced Certified Fund Raising Executive designation. In her thirty-plus years in the development field, she has managed capital campaigns; helped dozens of nonprofit organizations achieve their development goals, and has trained more than 50,000 professionals in Mexico, Canada, Egypt, Bermuda, and most of the United States.

The post How To Find, Recruit & Retain Dedicated NPO Board Members appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

Podcast Version

In this episode of the Strategic Nonprofit Podcast, host Trista sits down with the CEO of AMC NPO Solutions, Tom Abbott, to discuss the ten operational features that characterize how an NPO conducts its business under the Complementary Model. Read on, listen or watch to discover the 10 Complementary Model operating features.

Also read:

Discover the 10 operating features of the comp model below:

Many boards and CEOs get into disagreements or battles over policy creation. The Complementary Model helps resolve this by recognizing that there are two different types of policies – governance policies and administrative policies. 

This realization adds clarity to the role of the board and the CEO when it comes to policy development. Under the model, the board creates, discusses, and approves only governance policies (for example, setting the criteria for categories of membership, standards of practice, and ethics). So, for example, a board of directors might establish a Code of Ethics that would apply to all members of the association, or on another occasion a Code of Conduct for directors or staff.

It is the responsibility of the CEO to determine what the NPO’s policies should be. Not the boards.

Subsequently, if there are minimum legislated standards, it is the responsibility of the CEO to determine if those minimum standards should be exceeded in the
association, and if so, to what degree.

How deeply involved the board will become in the creation of the strategic plan will likely vary from one NPO to another, but the directors must
always be participants in the process. It is even more essential that they have the final say on approving (or rejecting) the developed strategic plan.

Subsequently after the strategic plan is approved, the staff’s role is to define what programs and activities will help to implement the plan. As well as determining how much the implementation phase will cost.

The board will then review and approve the budget submitted by the CEO

If an NPO chooses to have an executive committee, its mandate must be unambiguous and limited to specified tasks.

Next under the Complementary Model, CEO committees reporting to the CEO will more properly do administrative work. Overall, this arrangement is beneficial for two reasons. First, fewer committees are required to report on activities to the board of directors. Second, board meetings become shorter as a result.

The Complementary Model requires a clear differentiation between governance policies and administrative policies. As a result, it encourages NPOs to create two distinct policy manuals. The first is a Directors’ Manual, designed for board members; it will generally be consistent in its message and contents across the NPO spectrum.

The second is a Staff Manual, a “how-to” manual designed for the staff of the NPO; it may vary significantly in content and other aspects from one NPO to another.

As with most models of governance, the Complementary Model assigns responsibility for developing the board meeting agenda to the chair. However, this does not mean that the CEO cannot have input into crafting the agenda. Although, it does mean that the chair, and not the CEO, has the authority and responsibility for deciding what will be discussed at the board meeting.

At the meeting itself, consistent with common “Rules of Order,” all directors have an opportunity at the beginning of the meeting to add to or otherwise change the meeting agenda

There are two attributes of minute-taking that justify assigning this task to staff, rather than to a director, or as was common under the traditional model, to the secretary of the organization.

First, there is nothing “policy-oriented” about taking the minutes of a board of directors’ meeting. It is an important task, to be sure, but is not a policy development activity. Therefore, it is logical for the minutes to be taken by a staff person, rather than having a director spend their board participation time on this operational task.

Second, minute-taking is a skill that is not equally possessed by everyone. Subsequently, the NPO is better served if a staff member is trained to
fulfil this important role. The result will be for the board to have a consistent and higher standard of recording the business of the board of directors from one meeting to the next.

Similarly, the preparation and presentation of financial reports is an important operational function. However, as with the taking of minutes, there is nothing “policy-oriented” about the preparation and presentation of the actual financial reports. Consequently, it again makes sense for this administrative task to be
completed by a staff person, not by the treasurer of the organization. Viewed overall in terms of these ten operational features, the Complementary Model of Board Governance does not represent a revolutionary change in how directors function within their NPO.

But it does result in a practical and logical evolution in the procedures followed by the board; and it enables directors to continue to meet their iduciary and legal responsibilities while providing them with broader opportunities to participate more effectively in the governance of the organization.

An efficient board starts with the implementation of an effective governance model. 

AMC’s governance training helps nonprofit boards navigate governance and management to stay focused on their organization’s mission and visions. It includes valuable tools and clear guidance to address many not-for-profit organizations’ governance challenges.

Join NPO Academy’s Online Board Governance Training and implement the Complementary Model of Board Governance to build an effective partnership between the volunteer board, CEO and staff.

The post 10 Complementary Model Operating Features appeared first on AMC Governance Solutions - Governance Training and Strategic Planning.

72% of consumers report that they will not buy goods or services from a company or a brand that does not reflect their values. So how can you leverage this chance to further their cause with the consumers telling brands that they’re going to vote with their wallets? The answer is sponsorship programs for nonprofits. In this episode of the Strategic Nonprofit Podcast, host Trista sits down with Ken Ungar to discuss the importance of nonprofit sponsorship programs and some of the dos and don’ts of organizing your own. 

Also read:

• A Guide To Nonprofit Board Roles And Responsibilities
• How Covid-19 Helped Pivot The Success Of One Nonprofit
• The Ultimate Guide to the Nonprofit Strategic Planning Process

Sponsorship is a form of marketing where two organizations promote each other. The sponsor pays for the right to use a company’s intellectual property, for example, their logo, name, and likeness, to promote the sponsor’s products and services.

Corporate businesses are attracted to sponsorship programs for nonprofits because it makes them look good. When connecting with a charitable cause that aligns with their goals, they can boost their reputation. More so, because of the “halo effect” of the NPO’s “good will,” they’re likely to gain customers. Likewise, it’s a proven, reliable, and certain way for nonprofits to get their message out and increase awareness of the operation and cause.

A donation is the receipt of a contribution from a donor without the expectation of promotion. So the donor is giving for the sake of the cause. In contrast, a grant is when you’re receiving money, usually for a specific earmark or a particular purpose. Often from a government or foundation that wants to help promote the cause. Sponsorship is different because a sponsor seeks recognition for the “contribution.”

Check out Ken’s advice when it comes to creating a sponsorship program for nonprofits below:

First, as Ken advises, organizations must be market or sponsorship ready before creating a sponsorship program. If the nonprofit has a strong marketing program, it will have a strong sponsorship program. So, that means they should have a marketing program that they use every day—for example, a social media strategy, PR strategy, newsletters for donors, etc.

Because ultimately, the sponsor is looking to piggyback on the nonprofit’s marketing. So it’s imperative that their marketing be as strong as possible before they go to the market to sell sponsorship.

Second, nonprofits must create a sponsorship policy. A sponsorship policy is when the nonprofit leadership agrees on the parameters of what makes a good sponsor and what does not. This helps to align both the nonprofits’ and the businesses’ goals. If not, you could risk tarnishing your credibility, reputation and further advocacy for your cause.

So when creating your nonprofit sponsorship policy, you must consider what type of business is appropriate to sponsor your case. For example, if your nonprofit’s cause encourages plant-based diets, you might not want to pick a butcher shop as your sponsor! The idea is to create synergy.

Lastly, there’s a trend that has been building steam for quite some time in the nonprofit sponsorship space. Something Ken likes to call a “purpose-driven spot.”

It centres on the fact that consumers now expect companies and brands to act in a socially responsible way. Consumers look to companies with the purchasing power to influence all sorts of socially responsible causes.

So much that 86% of consumers report that they will only buy a product or service from a brand that matches their values that promotes their values. About 72% of consumers say that they will not purchase goods or services from a company or a brand that does not reflect their values. Ultimately, consumers are telling brands that they will vote with their wallets.

Companies that want to stay relevant have to demonstrate that they are acting in a socially responsible way. So we expect that the pace of purpose-driven sponsorship will only increase for nonprofits. Overall it is an opportunity for nonprofits to find new and enhanced revenue streams and inspire new donors.

Ken Ungar is a sponsorship consultant and president of Charge, a sponsorship consulting firm based in Indianapolis, who have clients all over North America and provide sponsorship counselling for both buyers and sellers of sponsorship.

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The Complementary Model of Board Governance is an effective and rewarding governance approach. But only if you know how it works! In this episode of the Strategic Nonprofit Podcast, host Trista sits down with the CEO of AMC NPO Solutions, Tom Abbott. Listen in as they explain 10 key principles of the complementary board governance model for nonprofits.

Also read:

The Complementary Model of Board Governance (Comp Model) is an effective and rewarding way to govern. In summary, the model focuses on ten principles influenced by two common models.

Altogether they set clear guidelines on the roles of the volunteer board and paid staff. As well as encouraging volunteer board members to provide progressive and collective leadership to the organization. At the same time, ensuring the CEO oversees the implementation of the board’s policies and manages the organization’s resources.

The title for the model derives from a paper written by Peter F. Drucker, which appears in his book “Managing For The Future.”

Ten principles underline the Complementary Model of board governance. These principles lay out the fundamental conventions within which the organizational structure. Some of them are unique. Others are common to the Carver and Traditional governance models. Discover the 10 principles of complementary governance in full below:

Volunteer boards of directors are responsible not only for the governance of their organization but also in a comprehensive way for the effectiveness of the management of the organization.

Many statutes in government regulations, such as those dealing with labour standards, sales taxes, and unpaid employee wages, hold volunteer directors liable for management failures in these areas.

So for anyone to suggest that NPO volunteer directors should work exclusively at the policy level can leave those directors exposed both legally and financially. That’s why directors need to acknowledge and accept their overall responsibility for both governance and management.

The dictionary of business terms defines a chief executive officer as “the officer who has ultimate management responsibility for an organization. The CEO reports directly to the board and appoints other managers to assist in carrying out the responsibilities of the organization.”

So once there’s an agreement that the senior staff person is, in fact, the CEO of the organization, it allows the board to hold that individual solely and entirely responsible for managing every aspect of the operation of the NPO.

As chair of the board of directors, the senior elected volunteer has all the responsibilities inherent in that position, including meeting and agenda preparation and meeting management. In addition, the chair’s responsible for:

The mantra that boards make policy and the Executive Officer executes has been standard procedure with the NPO community for decades.

However, as Peter Drucker once wrote, “The trouble with this elegant answer is that no one knows or has ever known what policy is. Let alone where its boundaries lie.” As a result, there’s often constant wrangling, turf battles, and friction.

That’s why the fourth principle is essential in clarifying the policy-setting role of both the board and the CEO. As well as setting the boundaries for them.

Overall, it’s the board’s responsibility to debate and decide upon policies related to governing matters of the NPO. Such as:

However, purely administrative policies, such as office hours, banking arrangements, human resources, and payroll administration, are all established by the CEO. So while the board has significant responsibility for policy determination, that responsibility does not extend to defining administrative policies. Lastly, administrative policy matters should not be on the agenda for discussion at board meetings.

When a board of directors articulates its expectations of directors by establishing a director’s code of conduct, it produces three positive outcomes:

Similarly, when boards of directors communicate their expectations of the CEO by establishing a CEO code of conduct, the same benefits result. 

That’s because there’s often a gap between the expectations of a volunteer board and the directors’ performance. Or between the expectations of a CEO and the CEO’s actual performance because the board has not articulated its expectations.

The Complementary Model of Board Governance identifies three alternative organizational components. They maintain the organization’s governance and management. They’re likewise known as statutory board committees (board committees or standing committees), policy task forces and CEO working committees.

One of the most important responsibilities of the board of directors is monitoring the performance of the organization – and taking the appropriate corrective action if things are not progressing as the board had planned. The Complementary Model establishes four methods for the board to use in meeting this responsibility:

•The CEO report
•Task force reports and board statutory committee reports
•External reports
•Financial report

A major cause of confusion and misdirection within NPOs is a sheer lack of documentation. Committee terms of reference aren’t clearly spelt; job descriptions may not exist for directors; there may be no written strategic plan. Similarly, there might be no official set of strategic goals or a work plan for the CEO and subsequently, no written appraisal of the performance of the CEO.

Just because volunteer directors may not get paid for their board service does not mean that the NPO can have no performance standards for them. If the organization wants them to do a good job, then the volunteers need feedback on their performance as much as anyone else. Hence the place of this principle of The Complementary Model and the need for performance feedback to directors at least annually.

Very few NPOs appreciate the correlation between volunteer training and volunteer performance. The linkage between effective board training and effective board performance should not come as a surprise. If your directors are not told what their role in the organization is, and if they are not provided with the training and other support necessary to fulfil that role, why should anyone be surprised if they are not successful and happy directors? You must therefore pay attention to this principle.

Read, Listen Or Watch: Operating Under The Complementary Model Of NPO Board Governance

An efficient board starts with the implementation of an effective governance model. 

AMC’s governance training helps nonprofit boards navigate governance and management to stay focused on their organization’s mission and visions. It includes valuable tools and clear guidance to address many not-for-profit organizations’ governance challenges.

Join NPO Academy’s Online Board Governance Training and implement the Complementary Model of Board Governance to build an effective partnership between the volunteer board, CEO and staff.

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