Nonprofits are meant to be publicly funded; therefore, they need to be publicly governed as well. Boards of Directors govern nonprofits. Boards enforce the mission through goals and policies setting for nonprofits. Also, it is important to note that Boards are comprised of citizens with an interest in the organizations wellbeing. They are typically volunteers, and are usually passionate about the mission of the organization. So, consider wisely if you want to maintain the control over your “good cause” business. If you do, then what you really need to start is a for-profit business.

There are similarities between non- and for-profit businesses. You complete similar incorporation paperwork, you definitely put in the same creative energy, but it is the governing part that makes the hugest difference. For-profit business owners set their goals, and move full steam ahead. While, nonprofits have more layers to go through when setting goals and moving forward. The Board is not there to be a deterrent, but instead to be the heart of the organization. The Board ensures that the organization is meeting its goals and upholding its mission. So, an organization is only as strong as its Board. (I know that is such an old cliché, but so true.)

Consider a few things before deciding to create a nonprofit:
1.  Are there other organizations doing what you want to do? Would it be better for you to combine your efforts?
2.  Are you ready to give up your control for the betterment of the work, and the individuals that will benefit from it?
3.  How will you fund the initial costs of starting your nonprofit?

There are many more questions that you should ask yourself. These are just a few. Now that I’ve given you some food for thought, go think!

Just recently an example of this was seen as The Shade Tree in Las Vegas, NV had a team of children design the look of the new playground. This is a very effective method when the board needs to be very specific about an activity or program.

Don’t discount your small constituents. Their voices are just as important as anyone else’s.

When a person becomes a board member, she assumes a level of responsibility for the organization and thus exposes herself to claims for not managing the organization properly. Even if the case brought against a board is thrown out, the organization still bears the brunt of having to pay the legal fees. Legal expenses could be brutal for a small organization and could even put them right out of business.
In general, D&O insurance includes coverage of an officer or director in the discharge of his/her duties. This includes but is not limited to:

• Any actual or alleged act
• Misstatement or misleading statement,
• Neglect or breach of duty
• Omission and/or error

As with all insurance policies, read the policy carefully to ensure it includes all the necessary components for your organization. Here is a checklist of issues to review when looking to purchase D&O insurance.

The following questions will help to guide you through the process of drafting a set of Bylaws for your organization.
•What is the purpose and mission statement?
•How and when will you elect board members? How many will there be? What number of board members will be conducive to helping your company achieve its mission? What will the term limits be? When can a director be removed and what is the process? What will the procedures be for resignation?
•What committees will be the most essential for your board?
•How often will the directors meet? Is it a quorum?
•Should your Board be insured?
•How often should your bylaws be reviewed and updated?

Putting together a set of Bylaws is a daunting and necessary task; however, there are many resources available to help you and your Board through the process. Take advantage of the Foundation Center and the Lectrin Law Library, just to name a few. You can find templates for nonprofit Bylaws at Easy Forms.

An organization cannot exist until the Bylaws are formally adopted by the Board and comply with the state laws governing the organization.

A client of mine runs a housing organization for low income families in Virginia. Well, she decided that in addition to helping people with their housing needs that she would also like to assist them with developing job skills. So, she reached out to many of her friends and asked if they would offer classes in their specialties. It has been a huge success. People are learning job skills, getting better jobs, and improving their financial outlook.

Another client is looking for board members. We’ve been scouring the various Leadership groups within Pennsylvania. Quite a few counties within many of the states offer Leadership programs. In Maryland we have Leadership Prince George’s County and Leadership Montgomery County. I know people who’ve graduated from Leadership Washington, DC and Leadership Alexandria in Virginia. What makes the Leadership groups a great place to find volunteers is that it is made up of individuals who’ve already shown an interest in their communities.

There are organizations that conduct searches for volunteers for your boards some for a fee, and others do it for the shear benefit of helping a nonprofit. I have used Volunteer Match one time to make a connection with a board group. It was a successful match, and now I highly recommend to others.

So, start right in your own back yard looking for volunteers. You’ll be surprised by the number of people you already know that are anxious to serve the community. They were just waiting for someone to ask for their participation.

Boards need the same time together. Brainstorming allows everyone to share and it increases the number of ideas you have to draw from. It can also be seen as a time that will allow the Board to bond. Yet, there are rules to making brainstorming a successful event for everyone.

1. Always say something positive after each shared thought (i.e.: great, thanks, wonderful, more, etc.)

2. Insist that everyone participates. If there is a person keeping quiet, call on him to share his idea. Sometimes people just want to be personally invited to share.

3. NEVER change the idea or thought. Be sure to write it down just as it was conveyed. This reassures the individual that their idea was worthy, and it will encourage more participation.

Enjoy this time together! Really try to get to know each other through sharing your thoughts on how to make your nonprofit a huge hit in the community.

Starting a new business shouldn’t be on a whim. You want to be successful; so, do your homework and plan. Gather some key advisers. Take a day of their time, and ask them to assist you in planning out the details of your new business.

In September 2006, Stacy Brice, owner of AssistU, took six women on a business planning retreat. We sequestered ourselves in Reston, VA for five days to just work on one thing – our new business ideas. Everyday was divided out into alone time and group time, and all of the time was spent sole on the one thing. We met and talked about each person’s new business idea. We gave each other constructive feedback. We brainstormed each new business concept, and that’s how Nonprofit Connectors was conceived.

Although each of us had a different business scenario, and we were all at different stages in our business process, we were still able to assist one another through the planning process. However, just think how much stronger and faster your process will go if you come together and are all focused on the same business solution.

Here are some of the basics areas you should cover in your planning session:*
• Mission statement – Make sure to have your mission statement on hand and use it as a guide. All conversations during your planning process should lead back to your mission statement.
• Goals and objectives – Consider identifying activities that will help you uncover your objectives that will lead to your goals.
• Current resources – Take stock of the current resources you have within the group and the community. This is where you’ll want to take advantage of the participants and really brainstorm ideas.
• Strategic analysis – Now you have a plan! Remember to put realistic dates next to each item. Then don’t forget to add in a review period and an annual planning session to revisit your strategic plan.

*List of items adapted from: Starting & Building a Nonprofit: A Practical Guide by Peri H. Pakroo, J.D.

This idea came about as I started compiling a list of resources to help anyone start a nonprofit. I thought I would set my resources up from the first step through to finding a location to house your nonprofit. As the idea grew, it was apparent to me that what I created would be useful to anyone at any phase in the nonprofit process. So, that’s how NPC was created.

I am a certified master virtual assistant (CMVA), which means I provide administrative support to my clients from my home office. My clients are all in the nonprofit sector either as volunteer boards of directors or executive directors. I started my first business, Virtual Details, LLC, in September 2000, and then I started working with nonprofit groups in 2001. I’ve been so involved with nonprofits over the course of the last six years that I decided to start a second business that will be dedicated to helping new nonprofits get started.

In my CMVA capacity, I’m responsible for my clients’ administrative affairs. I’ve helped to complete the application Form 1023 for the 501(c )3. I’ve created policies and procedures, reviewed and updated bylaws for the board’s approval, and I’ve written business plans for most of my clients. Researching a new idea is my specialty. I’ve helped clients’ research ideas for new nonprofits regularly. All these responsibilities have given me the experience to the startup side of nonprofits, and have allowed me the creativity to come up with a way to pass on the benefit.

I’m so excited to announce that the website for NPC will launch on Monday, September 10. You’ll be able to get more detailed information about NPC, and how to take advantage of the resources. There will be a private member only area for serious individuals who want to start nonprofits. Then there will be active forums for members to join.

I believe NPC will help to establish more organizations where people are living out their passion of serving others. So has your joy about your nonprofit idea been quenched by just the thought of all the paper work? If so, checkout NPC, and we’ll help you to regain your excitement about your idea.

Now it is perfectly okay to stack the board with friends, family, and close acquaintances, if you don’t want
what’s best for the organization. Impartial objectiveness is going to be the growing factor for any new nonprofit. Take a board with varying ideas and backgrounds, you have open-ended possibilities. However, if you fill the board with all like-minded people you’ll have the same old thing time and time again. You’ll run the risk of a board that will not be able to effectively perform, thus ruining the organizations chance for success. The board is ultimately responsible for the fiduciary and civic health of the organization. Choose wisely!

I highly advise that you develop a process for recruiting board members. For example, use the interview to express the organization’s expectation of the board members. Share that the board expects members to attend meetings, contribute their ideas, and passionately support the nonprofit’s mission. Here’s where you’ll want to repeat as often as possible the organization’s mission statement. If you have written literature, please share it with potential board members.

Make sure you mix up the talent on your board. It is very important to have a financial person who can read the financial statements. It doesn’t hurt to recruit a lawyer and a public relations person just for their expertise. You’ll need to be sure to have paid contractors to perform the service work. Using a board member for these tasks is a definite conflict of interest, and would pose huge legal ramification since a nonprofit board is a group of volunteer without compensation of any kind.

Now, we’ve talked about the fact that the board’s role is to act on behalf of the public for this publicly driven organization by carrying out the mission and being fiscally responsible. The way to ensure that the board completes this mandate successfully is by making sure each member is aware of their responsibilities and duties. This is written out in the organization’s bylaws. The bylaws govern the board members who govern the executive director and staff.

Nonprofit Kit for Dummies by Stan Hutton and Frances Phillips states the following:

Keep in mind that a board’s responsibilities are legal responsibilities. BoardSource, a nonprofit organization providing information and services for nonprofit boards, outlines three duties for boards: care, loyalty, and obedience.

The duty of care refers to the responsibility to be a prudent board member. In other words, board members must pay attention to what’s going on and make decisions based on good information.

The duty of loyalty means that a board member must put the organization’s welfare above other interests when making decisions.

The duty of obedience requires that board members act in accordance with the nonprofit’s mission and goals.