Increasing the Capacity of Individuals, Families and Communities

Capacity Benchmarking Tool
For Faith- and Community-Based Organizations

Table of Contents | Organizational Profile | Part II: Strategic Planning

Part I: Board of Directors

What is a Board of Directors?
The Board of Directors is responsible for making sure the organization pursues its mission in an ethical, effective and financially sound manner. When an organization is certified as a corporation, the board of directors becomes legally responsible and the organization is no longer the sole responsibility of its founder(s).²

Why is a Board of Directors important?
The Board of Directors determines the organization’s direction, ensures that the organization has the financial and human resources it needs to operate and run effective programs, sets policies, such as those for personnel and financial management, and advises staff and volunteers.

Board members support the organization in terms of:

• Fundraising (the executive director is not solely responsible for all fundraising efforts);
• Sharing expertise and making connections to others with needed expertise;
• Representing community members’ perspectives;
• Building community support for the organization;
• Providing oversight to reassure the community that the organization is run responsibly; and
• Exploring and formalizing the big picture of where the organization is going and what it needs to get there.

What topics are covered in the Board of Directors section?

Board Membership

Board Operations and Structure

Board Role- Leadership

Additional information about the board’s roles can be found in the sections about strategic planning, program monitoring, community linkages and partnerships, fundraising, and financial management.

Board Membership

Board Membership	Needs a lot of work (1)	Needs some work (2)	Needs a little work (3)	Meets Current Needs (4)
Best Practice: The board brings the affiliations and expertise needed to (1) represent the interests of the organization’s constituents, and (2) ensure sound oversight for proper management of all aspects of the organization.
Basic Benchmarks
1. If the program has bylaws (official governing document required for incorporation), the number of board members meets bylaw requirements.
2. Board member have diverse skills and professional expertise that match the organization's needs. If not sure… does your board have people such as: Accountants, lawyers, business professionals, experts in the field, and people skilled in human resources, media, public relations, community development, and group facilitation.
3. Board members have diverse perspectives that are represented by differences in gender, ethnicity, socioeconomic status, and life experiences.
4. Board members respect each other and appreciate the variety of perspectives brought by a diverse board membership.
5. The board develops recruitment strategies for achieving diversity goals.
6. Board members help recruit valuable new board members.
7. The board discusses and decides: (1) how to approach potential board candidates, (2) what they will and will not be told, and (3) how to present nominees to the board.
8. If the executive director or other employees serve on the board, they are non-voting members.
Enhancement Benchmarks
9. Board members include community leader(s) such as people active in other faith- or community-based organizations, religious leaders, leaders of well-respected businesses (both nonprofit and for-profit), politicians, and others with high positive name recognition.
10. Rotation policies (which state the number of consecutive terms board members are allowed to serve) make room for new leaders. The organization may establish a mandatory time off the board before a board member can be eligible for re-nomination.

Tips and strategies for increasing board diversity:
	Create a board committee devoted to recruitment. This committee meets throughout the year to identify potential members with needed skills and perspectives.
	Create a grid – with the desired skills, expertise and perspectives on one side and list the current board members on the other. Place checks where the board has the desired skills and perspectives. Identify the gaps.
	Schedule meetings with community leaders to share information about the organization and to explore their potential as effective board members.
	Revise bylaws if experience indicates that the mandatory board size is too small (or large). Develop or enforce existing policies for board members to rotate off the board.

Board Operations and Structures

Board Operations and Structure	Needs a lot of work (1)	Needs some work (2)	Needs a little work (3)	Meets Current Needs (4)
Best practice: The board is informed, knowledgeable, and committed to fulfilling its roles and responsibilities.
Basic Benchmarks
1. If there are bylaws, the number of board meetings meets or exceeds bylaw requirements.
2. The board engages in efficient discussions and reaches decisions in a timely manner.
3. Meetings are well attended. Signs of well attended board meetings include: The number of board members in attendance is at least the number needed to bring decisions to a vote (quorum). Board members arrive on time and meetings begin on time. Decisions are generally not challenged by absent board members.
4. Discussions about important decisions are informed and thoughtful with a balance of perspectives. Board members discuss potential downsides before making decisions.
5. Board members speak up for decisions that are best for the clients and organization, even when voicing unpopular views.
6. Board leaders make sure that all board members have the information and materials they need. Agendas and relevant materials are received in advance of meetings.
7. Meeting minutes reflect board decisions and actions. Minutes are distributed to all board members.
8. All board members have up-to-date information about the organization. Board manuals or binders help organize the information and documents.
9. Board communicates regularly and effectively with staff. Board decisions are communicated to staff on a timely basis. Board chair (or designated board member) and executive director are the primary communication links between staff and the board.
10. The board delegates responsibilities among board members. Delegation is often handled by creating officer positions and board committees. Typical officer positions include: Chair – ensures the board’s effectiveness and communication with the executive director. Vice Chair – prepares to take over as Chair and acts as the Chair when Chair is not present or able. Treasurer – leads the board’s financial oversight functions, ensuring that the full board has the information it needs to know that funds are spent appropriately. Secretary – keeps records and minutes of board meetings.
11. New board members receive an informal orientation.
Enhancement Benchmarks
12. The board acts promptly to resolve important and controversial issues.
13. Policies and procedures allow board action on urgent matters between regularly scheduled board meetings.
14. Training is provided as needed for the board to fulfill its roles and responsibilities. The budget allocates funds for board education and development. Common board training topics include: fundraising, finance, strategies for influencing public policy, personnel policies, program planning and evaluation, board development, and mission-relevant concerns.
15. Board members support a division of labor by participating on board committees. There are clear expectations about the purpose and goals of each committee. (See summary of board roles at the end of the Board of Directors section.)
16. Orientation for new board members is formal and comprehensive.

Tips and strategies for improved board meetings:
	Include items requiring full board consideration on board meeting agendas.
	Encourage participation by inviting board members to propose agenda topics.
	Prepare committee reports and other key background information and analysis before board meetings. Determine whether this information should be presented during the meeting or distributed ahead of time, giving board members an opportunity to prepare for the discussion.
	Ensure that board members speak freely. The board chair can encourage people to voice their perspectives.
Tips and strategies for creating useful board manuals:
	Delegate board manual assembly to a staff or board member who will produce it with the executive director.
	Useful information for a board manual or binder includes: Mission statement, strategic plan, bylaws; Board responsibilities and expectations (including specific expectations for financial contributions); List of board members, officers, and committee assignments; board and staff contact information; Board meeting schedule; recent board and committee meeting minutes; Recent annual report, budgets, and audits; Program descriptions; Staff organization chart, staff titles and job descriptions, staff resumes, personnel policies; Funding proposals, funder list; and Newsletters, fact sheets, brochure, publications, press articles.
Tips and strategies for orienting new board members:
	Set aside a few hours for presentation and discussion. This is a good opportunity for new board members to get to know the executive director, board chair, and each other.
	Schedule a time for a site visit. Show new board members around, explain how the program(s) works and answer questions.
	Orientations should cover the organization’s: Mission and target population; Programs; Board member roles and responsibilities; History, traditions and relevant contextual circumstances (e.g., big challenges, opportunities, upcoming events, image); Bylaws.

Board Role - Leadership

Board Role - Leadership	Needs a lot of work (1)	Needs some work (2)	Needs a little work (3)	Meets Current Needs (4)
Best Practices: The board promotes the organization's leadership and management.
Basic Benchmarks
1. The board sets the organization's future priorities.
2. Board roles and authority are defined and distinct from those of staff. The board delegates the organization’s operations to the executive director, and does not engage in staff decisions.
3. The board selects the executive director and sets her/his compensation.
4. The board is informed about the executive director's priorities and upcoming decisions. The extensive director shares relevant information with a board leader (usually board chair.) The board leader regularly asks questions and is available to the executive director.
5. The board gives guidance (when needed) to help the executive director make decisions.
6. The board assures compliance with all relevant laws and regulations (e.g., labor laws, health codes, building codes, staff and client privacy rights).
7. The board has explicit goals for itself, distinct from goals set for the organization as a whole. Examples of board goals: Host a special event Raise a specified amount of money Establish a new board committee Lead strategic planning Achieve [x] % attendance at board meetings Ensure all members can understand and question financial reports
8. If the board reports to an oversight body, it understands which decisions are within its authority and which need higher approval.
Enhancement Benchmarks
9. The board sets annual performance goals for the executive director and reviews his/her performance.
10. Board members evaluate the board's performance and implement strategies to improve the board's performance.

Tips and strategies for working with an oversight body (for example, a church program may be guided by an advisory group of parishioners and perhaps others, while the church’s board of directors may be legally accountable and, therefore, the oversight body for the program):
	The advisory group and oversight body agree to clear and distinct decision-making authority.
	The advisory group checks with the oversight body before undertaking major investments or taking the organization in a new direction.
	The advisory group and the oversight body share information to ensure sound decisions and accountability.

Congratulations! You have completed your assessment of the Board of Directors capacity area. Use your responses to determine the most important capacity building priorities. Please review the "How to Use This Tool" section on page 4.

Also, please review the summary of Board roles and responsibilities on the next page (I-7).

Summary of Board Roles and Responsibilities

Expectations for individual board members

1. Attend all board meetings (and committee meetings)
2. Participate in discussions
3. Provide advice after careful deliberation
4. Seek financial (and in-kind) donations from others
5. Make a financial contribution

Board Responsibilities (committees may be used to delegate among board members)

Board development (Promote board quality through recruitment and training)

• Ensure effective board member recruitment and orientation processes
• Evaluate overall board performance and recommend strategies and training to improve board performance
• Determine members’ interest in re-nomination to the board
• Recommend slate of officers for full board consideration

Fundraising (Promote fundraising success for strategies led by staff or board)

• Work with staff on long-range strategies and annual fundraising plans
• Monitor fundraising progress
• Work with staff to determine the need for changes in strategies
• Identify and introduce potential new donors
• Ensure legal, ethical, efficient, and polite fundraising practices

Finance (Oversees financial policies, procedures and major decisions)

• Review annual budget
• Propose budget revisions to avoid unnecessary financial risk
• Help staff design accurate and informative financial reports
• Conduct a search, recommend, and meet annually with an auditor

Personnel (Develop personnel policies, and address staffing and salary structures)

• Develop personnel policies
• Review Chief Executive Officer’s (CEO) performance and compensation

Program (Review program plans and align with organization’s goals and priorities)

• Ensure programs and resource allocation address organization’s goals and priorities
• Arrange for program evaluation

Public Policy (Develop public policy goals and advocacy strategies)

• Keep informed about community activities
• Assess relevant public policies and advise board and staff about implications for clients, service delivery, and internal operations
• Develop policy advocacy priorities and strategies

Table of Contents |  

Table of Contents | Organizational Profile | Part II: Strategic Planning