Archive for the ‘Governance’ Category

Bylaws contain the fundamental principles regarding the nature of the organization and the institutional structure by which the board of directors operates. Bylaws establish the specific criteria for decision-making, and should meet the specific needs of each organization.

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.

It is wonderful to be recognized for a job well done. I’m just returning from my vacation in Hollywood, CA where I actually got to walk through the Kodak Theatre where the Oscars have been held since 2001.

It was an amazing experience for a movie buff like me because it’s nothing like I imagined. It’s an actual theatre in the midst of shops, near a courtyard with a few popular night clubs, and on a very busy two lane road in the heart of the city, Hollywood Blvd and Highland. Yet, I could feel the presence of the red carpet excitement. Along the walls as you walk into the Kodak Theatre are placards of the award winning movies from the beginning of the Academy Awards in 1929 with designated space assigned up to the year 2071. So generations will be able to walk into this Theatre and garner the glory and honor of these highly esteemed movies.

The same should happen with your volunteers. Perhaps you start a plaque on the wall to honor your volunteers, or you give a lovely certificate, a parking space, buy the person coffee for a month, week, or day. Do something that shows your volunteers you appreciate their contributions, sacrifice of time, and unmatched passion. Make a big production out of it and allow everyone to participate. After all, volunteers are the heart of ever single nonprofit organization.

When conducting research about your new business for your business plan, don’t just stick to the usual suspects: the library, the internet, and/or a similar organization. Go everywhere!

When researching about my new business, I found myself in other states talking to Executives Directors of nonprofit organizations. I interviewed people who started nonprofit businesses to see what they thought they did right and what they would do to improve on the process. I visited group meetings of nonprofit professionals and gathered information, as well as new supports.

My most rewarding experience, yes hind-sight is 20/20, was the November 9 networking event with the Maryland Association of Nonprofit Organizations and other nonprofit organizations. While I was almost sick to my stomach just thinking about going, it was a great experience, and I was able to gather new resources from that event. I must admit, I’m looking forward to my next one.

I teach a class for Assist University, and every student is required to walk away from this program with a completed business plan. Some embrace this project as if they’ve been given the greatest challenge of their lives and others procrastinate as if you have just asked them the question, “So who are you?” This project is not meant to be a test of endurance, rather the assurance that everyone walks away with a solid foundation to his practice.

One of the first questions I’m asked is, “How do I find out this stuff for the business plan?” The answer is simpler than you may believe. All the answers are inside of you.

First you have an idea about the business you want to start. You also know the important things that you want to be true about this business; as well as the things that should never be true about your business. These things get included in your business plan.

You should research and learn as much as you can about your new business idea. Then that information gets added to your business plan as well. It should include information about your competition, your assets, your differences, and your strategy to be chosen above the others.

In my opinion, your business plan should include as much detail as you can squeeze into it. It is an active document participating with you throughout the process of creating your new business. So, as you discover something relevant, include it in your plan. Review and revise your plan often, and you will grow the business you desire.

If you aren’t familiar with SCORE (Service Corps of Retired Executives), then you need to make yourself familiar with them. This group of volunteers is a resource partner with SBA (Small Business Administration). They have offices located throughout the United States.

SCORE’s Mission
SCORE provides resources and expertise to maximize the success of existing and emerging small businesses.

SCORE “Counselors to America’s Small Business”
Small business success across America is SCORE’s mission. Since 1964, SCORE volunteers have donated their expertise in more than 600 skill areas to aid entrepreneurs. 7.8 million entrepreneurs have been counseled by SCORE or attended SCORE workshops. With 389 offices for face-to-face mentoring and Ask SCORE for online advice, SCORE serves the needs of today’s entrepreneurs.

History
SCORE mentors entrepreneurs through one-to-one business advising sessions on a full range of business topics. In the 1970s, when SCORE chapters were formed, SCORE expanded its services to offer workshops and seminars on a variety of business issues. In 1996, SCORE ventured online and began providing small business advice via email to meet the entrepreneur’s need to have service on an around-the-clock basis.

Find a SCORE Chapter
Find a chapter near you and take advantage of their various programs.

This past weekend I flew to Las Vegas to attend a client’s retreat session. This is a very new client, and I’m very excited about them. They are a women business owner group. I’m looking forward to seeing them grow and reach more women business owners.

We had a packed agenda. We talked about the Board structure, created new positions, reviewed the mission statement, analyzed the budget, and finally created a planning calendar. This was the most significant thing we accomplished this weekend, the planning calendar. Does your organization have a planning calendar? We planned a year out, and realized in some places we had more events than volunteers. In other areas, we had duplicate events. So, we took time to fix this and having input from the various Committee Chairs was invaluable.

Make sure that you take time to complete your planning calendar. Get a head start on your year.

Every good idea starts with a plan. I think that is how the saying goes.

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.

A company is incorporated to protect the owner against liability, and to set itself apart as its own entity. Incorporating your nonprofit ensures its longevity. It also completes the first step in being able to submit Form 1023 for tax-exempt status.

Each state has its own regulations for incorporation. To check out your state requirements go here. You can apply for incorporation on your own, you can procure the services of an attorney to do it for you, or you can seek the assistance of a consultant. As you can see, there are many roads to travel to get your nonprofit organization started. Getting your 501(c)(3) is very important if you intend to collect tax-exempt gifts.

There are a few instances where tax-exempt status doesn’t require incorporation: associations, trusts, and churches. Incorporation is not necessary for nonprofit organizations that expect to collect less than $5,000.00 a year. However, nonprofit organizations are still encouraged to incorporate for liability protection.

Do you need assistance with setting up your nonprofit?

Selecting your very first board is a crucial task, and should be approached with much consideration and thoughtfulness. If I’ve said it once, I’ve said this several times, the board’s first responsibility is to carry out the mission of the organization. Look at it this way, the success of the organization is in the hands of the members of the board.

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.

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