Each individual board member should bring their own take on proceedings to the table, not to mention their own network of contacts and professional experience.

What’s more, with a mix of cultural backgrounds and ages on your board, in addition to the requisite skills, you will have a non-profit that is well placed to manage risk, plan accordingly, take advantage of future opportunities, and engage with the wider community on a much deeper level.

Why is non-profit board diversity important?

By reflecting the diversity of the very community you are serving, your non-profit board will be in a position to make meaningful connections with prospective donors, partners, and policy makers.

It’s also important that your board members aren’t too far removed from the issues that are impacting your stakeholders. An ability to identify and respond to external environmental factors and influences is key to both short and long-term success.

With diverse and varied perspectives present in the boardroom, major decisions can be taken with confidence. A board with many different voices and backgrounds are much better placed to identify both opportunities and threats, whereas one with very little or no diversity risks being stagnated by its narrow view of the world at large.

Implementing a diverse non-profit board

If your current board lacks the necessary levels of diversity to take your non-profit forward, all is not lost. You can take the following steps to make sure your board evolves into one packed with varied and important skills and experiences.

• First, seek new board members who can expand upon the existing board’s cultural awareness. Ideal candidates should offer something different in terms of their cultural backgrounds, professional expertise, personal experience, and networking capabilities to what you already have.
• And if you’re not totally clear on where your board currently stands in terms of diversity, skillsets and strengths, you can undertake a self-assessment program via BoardSource (click here to get started).
• Next, think about the direction in which your organization is heading. What should your board look like as your non-profit continues to grow and progress? And what particular skills, contacts, experiences, and backgrounds will be most useful in getting you to closer to your goal?
• Finally, set goals for improving your current board in certain areas. New candidates should be evaluated with those goals in mind, and current board members should be made aware of the areas that require strengthening as they too consider prospective board members.

Don’t be afraid to ask for help

When cultivating a diverse non-profit board, it’s not enough to leave things to chance. Developing a structured approach to identifying and recruiting new board members is the only way towards sustained success for your organization.

It is fundamentally important that your non-profit board includes individuals who have strengths and contacts across a variety of professional and personal backgrounds, including marketing, legal, and social media to name but a few.

It’s also crucial that every non-profit board have at least one member with expertise in finance to ensure everything is compliant and legal.

There are a number of resources available to help you take your first steps towards diversifying your non-profit board, such as the previously mentioned BoardSource and the National Council of Nonprofits. Locally, the Impact Foundry (formerly the Nonprofit Resource Center) is an outstanding resource. Under the leadership of Kim Tucker, its Executive Director, the newly named and restructured organization is offering a wide range of educational, consulting and networking programs and events aimed at helping non-profit boards and management to succeed in the non-profit world. Checkbox Accounting’s own non-profit expert, Bill Simi serves as Impact Foundry’s treasurer.

If you’d like to discuss non-profit board diversity further, contact Checkbox today.

The post How to achieve non-profit board diversity appeared first on Checkbox Accounting.

CORE CONCEPTS

-Each organization should have a confidential process for addressing all complaints or reports of supposed illegal or unethical activities.
-Staff and volunteers need to feel safe to report unacceptable acts.
-Retaliation against whistleblowers can be a criminal act that applies to all organizations.
-Appropriate internal controls can help alleviate the occurrence of unacceptable acts.

LEGAL AND COMPLIANCE ISSUES

-The Sarbanes- Oxley Act (SOX), Section 1107, makes it a federal crime to retaliate against whistleblowers in certain circumstances.
-IRS Form 990 asks whether the organization has a written whistleblower policy.

Look for correlating Principles 6.

The post Principle 4: “Whistle-blower” Policy appeared first on Checkbox Accounting.

All conflicts of interest need to be addressed cautiously and quickly resolved even though they may not be illegal or unethical. Yet these are still unavoidable. Strategies need to be intact and followed by the board when dealing with such conflicts. It is also important to make certain that only independent board members vote when a conflict of interest occurs (more information on Principle 12).  On the opposite side, board members with material conflict of interest must recuse themselves from such board discussions as well as votes. It is crucial that a written conflict- of- interest policy and corresponding disclosure form as the guide for addressing conflict situations.

LEGAL AND COMPLIANCE ISSUES

-IRS Form 990 asks whether the organization
–has a written conflict-of-interest policy

–requires directors, officers, key employees, and others to annually disclose interests that could give rise to conflicts

–regularly monitors and enforces compliance with the policy

-IRS Form 990 also requires disclosure of certain transactions with current or former directors, officers and key employees

-Board members must meet certain standards of legal conduct, including the duty of loyalty—which means putting personal and professional interests aside for the good of the organization.

RESOURCES

–Independent Sector Conflict-of-Interest Policy

-Managing Conflicts of Interest:A Primer for Nonprofit Boards by Daniel Kurtz and Sarah E. Paul. BoardSource, 2006

-“Conflicts of Interest at Foundations: Avoiding the Bad and Managing the Good,”A BoardSourceWhite Paper

-The Nonprofit Policy Sampler by Barbara Lawrence and Outi Flynn. BoardSource, 2006

The post Principle 3: Conflicts of Interest appeared first on Checkbox Accounting.