Your mission and values should be guiding all of your decisions and how you stay in relationship with each other. It’s especially important that equity and inclusion remain priorities; even when making quick decisions, ask who will be impacted and who needs to help inform them.

2. Prioritize the health and safety of the people

This includes your staff, clients, volunteers, and fellow board members. Discuss how the organization is tending to not just your team’s physical health, but emotional, mental, and spiritual health, as well.

3. Continue governing, but know that it will be different

No matter the circumstance, boards still need to play a clear, governing role. However, be adaptive when it comes to structure, processes, and roles. Learn new ways to conduct board business such as virtual meetings and online voting. Activate existing or new ad hoc committees to take on different roles.

4. Engage the board chair as key partner

The partnership between CEO and board chair is more important now than ever. Make sure as chair you’re connecting regularly with the CEO and asking how you can be of help, while at the same time being a leader for the board. Provide a listening ear and serve as a thought partner to help the CEO weigh options and evaluate scenarios.

5. Support the CEO/Executive Director

Pay attention and respond. If you get a high priority email, reply right away. Check in periodically. Stay curious and engaged but know that the boundary between management and governance still exists. Ask “what do you need from the board?” Be mindful to listen and seek understanding first before jumping-in to provide quick solutions driven by your desire to help.

6. Communicate, communicate, communicate

Over-communication in the time of crisis is essentially non-existent; things are evolving rapidly, so frequent, open communication is key in both directions. Use whatever communication channels necessary, whether email, Slack, online meetings, etc., to stay in touch with each other and leadership. Ask staff for key messages so you can remain ambassadors of the organization while still being consistent with the overall communication strategy. Think about scheduling a standing check-in meeting. If the need for increased communication becomes a burden for an already stretched CEO, consider appointing a board member to coordinate board communication.

7. Flex and adapt with board roles and boundaries

Navigating through a crisis will call on a variety of skill sets, which is another reason having a diversity of perspectives and backgrounds on your board all the time is a good thing. For example, maybe you’re revisiting bylaws, where a legal mind will be helpful, or you need to call upon HR or communication expertise. Or, insight maybe is needed to lend perspective on behalf of the community the organization works with.

If you don’t have the necessary skill sets on your board, you may need to tap into your professional networks to fill gaps. At the same time, some board members may have limited availability, given their own capacity and circumstances. Again, practice open communication and be clear about when you need to play a governing role or where you can support as a volunteer given the current needs.

8. Activate a finance committee or task force

As you’re assessing your risks and possible next actions, think about activating a finance committee if you don’t already have one, or a dedicated group to think through financial plans, scenarios, and short-and long-term considerations. Be mindful of your governance role and leave management decisions to staff. Engage in open communication with the CFO/Finance Director in a true partnership relationship.

9. Learn and adapt as you go

A crisis is a time for learning, grace, adaptability, and empathy. It’s not a time to be perfect, but to iterate; you will need to take action based on the best information you have available. You will need to be simultaneously responding to short-, medium-, and long-term questions, and because things will keep changing and new information will emerge, you will likely make mistakes. The more you can keep a spirit of learning, the better. Priorities will need to change; be clear when that’s the case.

10. Anticipate a changed future for the organization and the board

Wherever this crisis is leading us, the future will inevitably be different. Be intentional about how you’re making decisions and as new possibilities emerge or systems start to develop and take notes of what you’re noticing. Use what you learn to inform generative conversations about how the organization will move forward.  How can you use what you learn to help the board work better in the future? “Different” may very well lead to a better version of working together long-term.

The post Governing In a Time of Crisis: 10 Actions for Boards appeared first on Propel Nonprofits.

The post Emergency Succession Plan Template appeared first on Propel Nonprofits.

The post How To Be a Great Board Chair Video appeared first on Propel Nonprofits.

The post Board Roles & Responsibilities Video appeared first on Propel Nonprofits.

Before You Start Recruiting & Onboarding New Board Members

Do you have a clear strategic direction and priorities?

Be clear on where you’re going as an organization and what strategies potential board members will be asked to help inform. What are your top strategic goals? What skillsets and perspectives do you need to get there? Using a board profile matrix can be a helpful tool; find a sample board profile matrix at PropelNonprofits.org.

Are you prepared to invest time in effectively onramping new members? Do you have a process?

Avoid welcoming new board members in the midst of preparing for your annual gala or anytime you won’t have capacity to introduce them to their role, the rest of the board, and where the organization is at. Charge someone – or a board committee – to formalize a board recruitment and on-ramping process; there’s no need to reinvent the wheel every year. Typical governance committee responsibilities include analyzing board composition to find gaps, equipping the board with board recruitment processes and tools, championing policy review, and leading board self-assessments.

What are your expectations for board service? And are they realistic for your desired pool of board candidates?

As your organization evolves, what you’ll need from your board will evolve, both in terms of time commitment and the nature of the work. As a board, clarify the job description of a board member so new people know what’s expected of them. This list should include desired skills, meeting location, frequency of meetings, expected time commitment per month, whether members are expected to sit on a committee or make financial contributions, your annual budget (including top sources of funding), strategic direction, fundraising expectation, length of board term, and whether you carry liability insurance.

Be realistic. If your top recruits are also working parents of young children, a 20-hour-a-month time commitment will be a barrier. If making your board more accessible is important, consider providing child care, for example, or investing more effort in other accommodations folks might need.

Also, know that recruiting officers can be challenging. We recommend onboarding new people as board members and develop them for officer roles once they are more familiar with the organization and board responsibilities.

Is your board prepared to incorporate diverse perspectives and experiences?

If your board is actively looking for better representation from the communities it’s working with or to be more inclusive of people of a different race, culture, sexual orientation, or ability, be sure you’re prepared to fully engage new people and perspectives. This may mean changing the structure of your meetings, time or place you meet, and how decisions are made.

Where to Recruit Board Members

Leverage your current community engagement channels.

People join boards of nonprofits they are already familiar with and engaged in. Consider outreach to people who have attended your events, benefitted from your services, or already contributing financially to your organization. Think about hosting an open board meeting, setting up one-on-one meetings between board/staff, or other volunteer engagements. In addition to recruiting new board members from your existing pool of already-engaged people, consider viewing your current contacts as ambassadors to help you find new recruits. For example, you could establish a nominating committee, where the group meets once to recommend names of people they know who could be potential board members.

Engage your existing board members.

The number one reason people join boards is because they were asked. Board members are responsible for helping to generate ideas of who could be good for the board. Remember: the most important criteria is someone invested in your mission and who has time to commit. We can teach the technical skills needed to be a treasurer or board chair, but we can’t make them love your organization or clear space in their calendars.

Develop a leadership pipeline to board service.

Create multiple opportunities for clients and community members to convert from being a stranger to being an advocate for your organization. From this pool of advocates, create a structure that allows for more limited involvement in volunteerism so both you and the potential member can be sure it’s a good fit. This could include asking potential candidates to volunteer at an event or asking them to serve on a committee for a year.

What are the institutional and virtual pathways that make the most sense to connect with your target market?

If you have a broad mission, cast a wide net with your ‘external’ posting virtually through:

• Propel Nonprofits’ Board Connector: If your organization has at least one paid staff, has been operating as a nonprofit for at least a year, has a board in place with regular board meetings, has active participation by board members, has board officers in place, and is relatively stable organizationally and financially, email boardconnector@propelnonprofits.org for more information about finding new board members through Board Connector.
• HandsOn Twin Cities
• Minnesota Council of Nonprofits and Pollen’s jobs & opportunities boards
• Social media, including LinkedIn

The more targeted your recruitment needs or mission, the more effective other strategies might be.

In either case, staying connected with your community partners is critical to having the network you need to find new people who are passionate about your mission. Don’t be afraid to get creative and use this opportunity to step outside your existing networks. Board recruitment is an ongoing process and part of the responsibility of all board members as ambassadors of your nonprofit.

The post Recruiting New Board Members appeared first on Propel Nonprofits.

This listing is a summary of the requirements to get you started. It’s helpful to set calendar reminders for these reports and add them to the list of responsibilities for the staff or board member who oversees the finances for the organization. There are many more details to these requirements that may apply to your organization. We encourage you to research the specific requirements further with each of these agencies.

Note: The information here is not legal advice and is for educational/informational purposes only.

Maintaining your legal status as a nonprofit: Required annual reports and filings

Federal Requirements to Maintain 501(c)(3) Status

As a tax-exempt organization, you are required to file an annual information return report with the IRS, even if your revenue is $0; this filing is generally referred to as a “990.” There are various types of 990 forms. There is no IRS fee to file a 990. If your fiscal year ends on December 31 each year, then your IRS 990 must be filed by May 15 of the following year. If you have a different fiscal year, then the IRS 990 is due on the 15th day of the fifth month following the end of your fiscal year. You can find more information on Form 990s here.

Which IRS 990 form to file:

• Form 990-N: Organizations with revenues less than or equal to $50,000/year can file an Electronic Notice (“e-Postcard”), found here.
• Form 990-EZ: Organizations with annual revenues between $50,000-$200,000 and total assets under $500,000
• Form 990: Organizations with annual revenues over $200,000 or total assets over $500,000

Failure to file your annual Form 990 may result in penalties, and failure to file it for three consecutive years will result in the loss of your tax-exempt status. Note: This is one of the commonly overlooked requirements, especially for small organizations. Having an organization’s 501(c)(3) status revoked is disruptive and puts the organization at risk.

State of Minnesota Requirements

Minnesota Attorney General:

If your organization pays staff or contractors (or professional fundraisers) to carry out its mission, raises more than $25,000 in a year, or holds more than $25,000 in charitable assets, it must register with the Minnesota Attorney General’s office and file an annual report (online or by mail); there is a filing fee of $25. The form can be found here.

Information from the Attorney General regarding the legal requirements and reporting obligations of a nonprofit organization can be found here.

Minnesota Secretary of State:

If the organization is a Minnesota Corporation, your organization’s registration with the Minnesota Secretary of State must be renewed by December 31 each year, regardless of your fiscal year-end. The renewal is free and can be completed online; search for your organization’s name at the Secretary of State’s website.

Failing to file your renewal may result in the involuntary dissolution of your organization.

Other Annual Requirements

• In Minnesota, legally you need to have at least three board members, including a Chair and Treasurer, that hold a minimum of one meeting per year. While the state requires one meeting per year, we recommend you meet at least quarterly or according to the frequency listed in your bylaws. Also, be sure to keep minutes at these meetings.
• Publicly disclose your nonprofit’s three most recent Form 990s and provide them on request. This can mean posting them to your website or making sure your GuideStar profile is updated with your annual returns.
• It’s good practice to have your staff and board complete a conflict of interest form annually to disclose existing conflicts and to remind them to disclose any that arise throughout the year.
• Boards of directors should do an annual performance review of the executive director and approve the director’s compensation and benefits.
• Create a budget for your upcoming fiscal year and have it approved by your board.
• Be sure you’ve thanked all donors; know that donors who have contributed $250 or more need written acknowledgment in order to claim a tax deduction. The best practice is to thank them as close to the timing of the gift as possible.

One-Time Tax Exemptions

Exemption from sales tax or property taxes is not automatic for nonprofit organizations. Note that these are not annual requirements, but rather one-time applications that are still good to be sure you have on record.

Sales Tax

In Minnesota, a 501(c)(3) organization organized for charitable, religious, and/or educational purposes, may request an exemption from paying Minnesota sales tax on its purchases. Not all 501(c)(3) organizations qualify. This request is made to the Minnesota Department of Revenue using Form ST16, available at www.revenue.state.mn.us. There is no fee to apply and this exemption does not expire; however, you will need to provide the form to each vendor or store you’re seeking an exemption from for their records.

Property Tax

Nonprofits that own real estate may be eligible for exemption from property taxes. This exemption is granted by the county where the property is located and is based on criteria and procedures established by the county or city assessor. Minnesota Council of Nonprofits offers a guide to seeking property tax exemption.

The post Annual Requirements for Nonprofit Organizations in Minnesota appeared first on Propel Nonprofits.

The Roles & Responsibilities of Nonprofit Boards

As a first step, learn more about the purpose and roles of the board of directors for a nonprofit. When you join a board, you will be agreeing to an important volunteer position that also has some legal requirements and obligations. For a good overview, read Board Roles and Responsibilities or register for a Propel Nonprofits training or webinar on the topic.

Your Nonprofit Board Service Journey

There a few key questions to consider as you look for the right board to join:

• What causes or types of nonprofit work do I care about?
• What skills do I want to offer as a volunteer board member? What skills do I want to develop?
• Am I more interested in being a part of a board that is very hands-on in running the organization? Or would a board that operates with a more strategic governance role be a better fit for me?
• How much time could I devote to board service, including board meetings, committees, and other volunteer activities? Do I have limitations on the schedule or frequency of meetings?
• How important is the location of the organization, and of the meetings?
• Am I willing and able to make a financial contribution to a nonprofit?
• And, importantly, what will excite me about serving on a nonprofit board?

Finding a Board to Join

There are several paths for exploring opportunities to join a board:

• Use your network of colleagues and friends; talk with people you know who are involved with nonprofits about their experiences and organizations where they’ve been involved. Many boards search for board members by asking their volunteers and current board members to recommend candidates. Update your LinkedIn profile to mention your interest in board service.
• Review your previous volunteering or donations to nonprofits. Many board members have been volunteers or supporters of an organization before joining the board. If you are particularly passionate and interested in certain nonprofits in your community, add them to your list to research further.
• If you’re in the Minneapolis-Saint Paul metro area, review Propel Nonprofits’ Board Connector opportunities. You can submit your information through the online application; continue to monitor listings for opportunities for open board positions that intrigue you and let us know which one aligns with your interests: https://www.propelnonprofits.org/join-a-board/

Some Guidance and Tips for Your Search

There are many nonprofit organizations in the community, ranging from large to medium to small, working in health care, arts, social services, childcare, housing, animal rescue, and social justice. Some nonprofits have many employees and large boards, while many others operate with all volunteers. Each of these nonprofits has a board of directors and they have all developed a process to recruit, elect, and work with their boards. There is no single path to board service.

The board of directors is a legal role and is elected by either the current board or by the members, if it’s a membership organization. There are generally several steps for the process of joining a board and it may take some time.

If you are interested in a specific nonprofit, especially if it’s a well known and prominent organization, consider volunteering as a way to get to know the organization and the staff before seeking a board role. These organizations often have many candidates for board service and will consider your past support and relationship with the organization.

Research the Organization

Once you’ve identified some nonprofits that interest you, do some research to learn more about it; reviewing its website, annual reports, or other publications, along with stories or videos about the impact of its programs. Are its core values in alignment with yours? Does the organization serve a community that you deeply care about?

Board members work closely with the organization’s leadership and oversee finances and accountability to the community. Review the information about the current board members, leadership staff, and primary program areas. If its available, review the organization’s financial information and any description of its sources of revenue.

Questions for the Organization

Once you are in conversation with a nonprofit to explore a board position, you’ll probably want to learn more details about the programs, plans, and activities that support the mission. As you talk with the executive director, board chair/president, or a governance committee member, here are some other questions to ask:

• What are the highest priority goals and strategies for the organization for the next few years?
• What role does the board play in strategic discussions and vision?
• What are the challenges that the organization is managing right now?
• What kind of skills or perspectives are needed on the board for the next few years, how will I add value?
• What is the expectation for board members to make a personal financial contribution? Are board members expected to be involved in fundraising, and how?
• What is the expectation for board members to volunteer or offer pro bono services in addition to participation on the board?

And some nuts and bolts questions:

• When and where are the board meetings? Does the board have committees, and are all board members expected to join a committee?
• What is the average time commitment for board members?
• What is your board recruitment and orientation process?
• Do you have Directors’ and Officers’ insurance?

You could also ask to talk with a board member about their experience, or to attend a board meeting as an observer.

The post Choosing a Nonprofit Board to Join appeared first on Propel Nonprofits.

This resource is intended to help nonprofit board members clarify your role so you can be effective in carrying out your nonprofit’s mission. For nonprofits in Minnesota, the Attorney General’s Office has a guide for board members that is a must-read related to your fiduciary duties and what you’re legally responsible for; check with your respective Secretary of State and Attorney General for regulations. This guide is intended to supplement those baseline requirements.

Lead Strategically

• Develop and communicate the organization’s direction, goals, and a plan to get there. This may be a strategic plan.
• If there isn’t a strategic plan in place that articulates the organization’s mission, role in society, and direction for the future, partner with staff to create one. As a board, monitor outcomes related to the plan and revise as needed.
• Have robust board meetings that cut through the complexity of the environment in which your nonprofit is operating in order to assist organizational leadership in anticipating and navigating change.

Ensure Financial Stability

• Understand the nonprofit’s business model and financial aspects.
• Ensure your organization has adequate infrastructure to create accurate and timely financials. Make sure your board is able to understand the nonprofit’s financial reports.
• Develop strategies to fund your mission that are realistic and that support your organization’s business model.
• Ensure financial reporting requirements are compliant with state regulations, including 990 filings, audits, and registration with the Secretary of State and Attorney General.

Be An Ambassador

• Cultivate relationships that are beneficial to the organization’s strategies.
• Participate in fund development efforts of your organization. Board members are often encouraged to donate personally in an amount meaningful to them.
• Listen to community members’ needs related to your mission.
• As an organization, share the impact of your nonprofit on the community and how the community has supported you (e.g., an annual report or letter).

Support & Supervise the Executive Director

• Recruit and hire the Executive Director or CEO to lead and manage the organization.
• Supervise and evaluate the performance of the Executive Director annually.
• Have an emergency and long-term succession plan for the Executive Director.
• Ask the Executive Director how they want to be supported. Different Executive Directors need different support from their boards; welcomed management for one might be unwelcomed management for another.

Ensure Healthy Governance

• Review bylaws and maintain compliance.
• Recruit and orient new board members.
• Develop a plan for board succession and officer leadership.
• Take responsibility for board business and create structures that align with getting that work done.
• Conduct a self-evaluation that allows board members to improve their governance practices.

How does your board define success for its role in contributing to your mission today? Have a conversation as a board about what the organization needs from the board given its current life-stage, strategic direction, and staff attention to operations. Use this resource as a tool to ensure board members and leadership are on the same page. Clear expectations can contribute to deeper and more productive board engagement and help avoid conflict.

The post Board Roles & Responsibilities appeared first on Propel Nonprofits.

Visit: thepowerofpossibility.org

The post The Power of Possibility: Exploring Greater Impact through Strategic Partnerships appeared first on Propel Nonprofits.

The post Ten Dimensions That Shape Your Board Workbook appeared first on Propel Nonprofits.