From securing and managing grants to strategic planning to stewarding supporter relationships, board members are key players in facilitating your nonprofit’s operations and upholding your mission. Your organization relies on them for their governance, oversight and nonprofit expertise.

To maximize your board’s effectiveness, you need to build a solid, healthy foundation for your relationship with board members. That way, your board will be more productive and work in tandem with your nonprofit’s staff to make a difference.

Throughout this guide, we’ll share tips for forging a relationship with your board based on mutual respect, trust and understanding. Let’s get started!

1. Set clear expectations.

Start relationships off strong with clear expectations for board members’ roles. When everyone’s on the same page about their responsibilities and how things work, you can avoid miscommunication and set your board up for success.

To clarify exactly what your board must accomplish, your nonprofit’s leaders should:

• Host a board member orientation. Having dedicated time for onboarding and training your board members can help increase accountability and lead to more efficient decision-making. During your board orientation, review your nonprofit’s background, strategic goals and budget to familiarize new board members with your organization.

• Define responsibilities. Most importantly, your orientation should make it clear what each board member’s responsibilities will be. These may include strategic planning, approving budgets, managing potential risks, identifying high-value prospects, developing internal policies and monitoring compliance with laws, regulations and ethical standards.

• Establish board policies and procedures. If you haven’t already, outline policies and procedures for how your board should operate. These guidelines will provide structure to your board, define board success, help resolve conflicts and answer any questions board members may have about how they should act in certain situations. For instance, you’ll likely create a conflict of interest policy, board meeting procedures and a code of ethics.

Additionally, you may implement some sort of board evaluation to reinforce your expectations and assess your board’s performance. Then, you can use the results to improve your training materials and further clarify role expectations if necessary.

2. Foster a positive board culture.

Create a positive work environment where board members feel empowered to put their best foot forward. Juggling the many responsibilities of a board member can be stressful at times, but with an uplifting board culture, you can keep your board engaged and motivated to move forward with their mission-critical work.

Follow these strategies to foster a welcoming, positive environment:

• Lead by example. If your nonprofit’s leadership team models a professional yet enthusiastic spirit and commitment to your nonprofit’s values, then your board members will follow suit. Set the tone for your board, and maintain a positive attitude that inspires board members to do the same.

• Seek diverse perspectives. When assembling your board, you should look for a diverse group of people with different experiences and insights they can bring to the table. Make board members feel comfortable sharing their perspectives and lending their unique expertise. This way, you’ll facilitate productive conversations and well-rounded decisions that help your nonprofit grow.

• Make personal connections. Team members who get to know each other personally often work better together. Provide opportunities for board members to form personal connections through team-building activities, happy hours and volunteer outings that keep them engaged and encourage better collaboration.

Remember to also put your organization’s purpose at the forefront of everything your board does. Reminding your board members of why they committed to your nonprofit in the first place can help strengthen their relationship with your team and keep them focused on your mission.

3. Provide meaningful involvement opportunities.

Engage board members through opportunities that allow them to lend their unique expertise and make a clear impact on your mission. While your board members’ specific involvement may look different, you may incorporate them into your:

• Strategic planning. Your nonprofit’s strategic plan aligns your organization’s goals with its values to provide focus to your activities and operations. Involving your board members in the strategic planning process allows them to infuse their prior experience and passion for your cause into your plan. As a result, you’ll not only have a better roadmap for your future endeavors but also a stronger relationship with board members who will feel more invested in your nonprofit’s success.

• Community outreach. According to 67% of nonprofit executives, their boards don’t spend enough time building relationships with community members. However, each board member has their own network of people with the potential to provide immense support for your cause. Take advantage of these connections by having board members share petitions, speak at community events and advocate for your organization online.

• Fundraising initiatives. Lastly, involve board members in your fundraising strategy. They may meet with prospective major donors, participate in feasibility studies, steward your supporter relationships and secure grant funding.

To make your board’s work even more meaningful, match them with roles that reflect their interests and experience. For example, if one of your board members used to be a Certified Public Accountant (CPA), ask them to serve on your finance committee.

4. Maintain open communication.

Open communication is the key to keeping board members informed, productive and satisfied in their roles. Board members should both receive frequent communications from your nonprofit’s leadership and feel comfortable coming to your team with any questions or concerns.

Establish an open communication policy by:

• Sharing important updates. Keep your board in the know by providing updates about your nonprofit’s activities and cause. Consider creating a dedicated board newsletter where you can share progress reports, achievements, fundraising campaign results and current challenges your organization faces.

• Soliciting feedback. Give board members a chance to submit their honest feedback on working with your nonprofit via a yearly board survey and less formal opportunities throughout the year. Listening to and implementing their suggestions will help you improve their experience and show you’re committed to building genuine relationships with them.

• Approaching conflicts constructively. If and when conflicts arise, address these issues promptly. Hear out all parties involved, and follow all appropriate board policies and procedures as you work to resolve the conflict together.

• Scheduling check-ins. It’s important to meet with your board members individually once a year and provide opportunities for feedback at meetings. These check-ins give board members the opportunity to ask questions, address concerns, discuss their experience and provide any suggestions for improving the board’s operations.

During your regularly scheduled board meetings, you should also take measures to ensure everyone’s voice is heard. For instance, consider distributing meeting materials in advance to prepare your board members for productive discussions.

5. Thank them for their contributions.

Just as you steward your donors, show your appreciation for your board and all of their hard work to retain them as members of your organization. Considering that 66% of employees consider leaving their jobs when they feel unappreciated, it’s important to remind your board members how valuable they are and how critical their roles are to your success.

Here are some thoughtful ways you can show your board members you care:

• Send thank-you notes. Thank-you notes are a tried-and-true way to show your board members how much you appreciate them. Make sure to personalize your notes by adding specifics about each board member’s contributions and accomplishments. You may send these messages via email, eCards or physical letters.

• Give gifts. Sometimes, a tangible token of your appreciation goes a long way in demonstrating your gratitude for your board. Common board member appreciation gifts include branded merchandise from your nonprofit, gift cards to local businesses or office accessories to make their work easier.

• Host appreciation events. Gather your board members together to thank them for their hard work in person. Make it a night they’ll never forget by catering food, inviting their families and highlighting the impact of each individual on your board.

While these are all internal appreciation strategies, you may also give your board public shoutouts to share your gratitude on a larger scale. These may include social media posts, a section of your website dedicated to board accomplishments or board member awards. Just remember to ask for your board members’ permission first before implementing any of these strategies.

Throughout your board’s tenure, you should continuously put effort into maintaining strong relationships with your board members. That way, you can build upon the healthy foundation you’ve created, enabling your organization to retain board members, develop a positive reputation and maximize the social good you accomplish.

Nonprofits are always looking for new ways to expand their reach, build donor relationships, and boost fundraising—all while navigating tight budgets and resources. One cost-effective way to keep your community engaged is by hosting a hybrid event, which blends elements of in-person and virtual events to appeal to a wider audience.

Hybrid events open up many possibilities for your nonprofit, allowing you to plan fundraising galas, conferences, workshops, and more while engaging supporters far and wide.

In this guide, we’ll explore the benefits of hybrid nonprofit events, plus some bonus tips for successful planning.

1. Increased Reach and Accessibility

Hybrid events are a proven and practical way to expand your nonprofit’s audience. They appeal both to those who enjoy the networking and social aspects of an in-person event and those who prefer the conveniences of a virtual event. 

Planning a hybrid event removes geographical barriers, allowing people to participate no matter where they’re located. Even if potential attendees live far away or lead busy lives that make traveling to your event challenging, they can still get involved through their laptop, tablet, or phone.

2. Cost-Effectiveness

Hybrid events are cost-effective for both your nonprofit and its guests. Participants have the option to “attend” without worrying about travel or childcare costs. At the same time, your nonprofit can accommodate more attendees without having to pay for a larger venue, refreshments, and expensive decorations.

Any costs associated with streaming a hybrid event will be well worth the investment since you’re saving on actual event expenses and engaging more participants throughout the event.

3. Sponsorship and Partnership Opportunities

Hybrid events open up new sponsorship and partnership opportunities that provide extra funding and awareness for your nonprofit, such as:

• Media partnerships for promoting your event
• Technology partnerships that provide discounted event solutions
• Branded merchandise opportunities
• Content partnerships with social media influencers

While traditional in-person events offer limited signage and sponsorship opportunities, digital sponsorships unlock a whole new realm of possibilities that can significantly increase your return on investment (ROI). Your nonprofit can leverage virtual donation pages, social media, and other online marketing tools to boost interest and event engagement.

4. Improved Data Collection and Analytics

Hybrid events can provide a wealth of valuable data to your nonprofit. For instance, you can easily track:

• In-person and virtual attendance
• Engagement (with polls, social media posts, and more)
• Attendee demographics
• Attendee satisfaction

With more data at your disposal, you can gain a better understanding of audience preferences and interests you can appeal to during future events.

5. Enhanced Networking and Collaboration

Hybrid events allow your nonprofit’s team and speakers to connect with both an in-person and virtual audience through breakout sessions and networking rooms. Since people can attend from anywhere in the world, you can encourage a wider group of attendees to participate, interact, and build lasting relationships.

Make it easy for participants to connect by:

• Allowing attendees to create personalized profiles and bios.
• Planning icebreaker and roundtable sessions.
• Creating interactive polls and live chat rooms.

After your event, you can allow attendees to strengthen their connections by joining a dedicated social media group or message board.

6. Expanded Fundraising Opportunities

Along with an expanded audience and reach, hybrid events facilitate more and varied ways to raise funds. These can include:

• Online and in-person auctions
• Fundraising challenges
• Raffles
• Peer-to-peer campaigns
• Merchandise sales

Offering in-person and virtual opportunities encourages more people to donate at whatever level they’re most comfortable with. You can provide more payment options and tap into a little friendly competition by setting up fundraising challenges between in-person and virtual attendees.

7. Greater Flexibility and Resilience

Your nonprofit can enjoy a lot more flexibility when planning a hybrid event. While traditional in-person events may have to rely on the weather or travel availability for success, hybrid events can move forward despite any unexpected setbacks.

Whether there’s a last-minute venue cancellation, technical issues, or a sudden change in weather, your nonprofit can still host an engaging event experience for its attendees either online or in person.

8. Improved Attendee Experience

Hybrid events provide a more personalized and customizable experience for attendees. For example, they can:

• Attend either in person or online based on their schedule and preferences.
• Engage in a variety of ways, from chat rooms to Q&A sessions.
• Appreciate multimedia content, from videos to live presentations.

Ultimately, the flexibility of hybrid events allows participants to have greater control over their individual event experience with your nonprofit. Attendees who have concerns over venue accommodations and dietary restrictions can either share them with your nonprofit’s team or simply attend virtually.

9. Increased Sustainability and Eco-Friendliness

According to a survey across 50 countries, 64% of people consider climate change to be a global emergency. As sustainability becomes more of a priority among nonprofits, companies, and individuals alike, hybrid events stand out as a more environmentally-friendly option.

Hybrid events promote sustainability by:

• Limiting the need for travel, reducing carbon emissions.
• Conserving the energy and resources typically required for in-person events.
• Reducing waste generated by single-use materials and other disposable event decorations.

By focusing on hosting an eco-friendly event, your nonprofit can improve branding and encourage greater participation. Plus, you might even open up additional sponsorship opportunities with environmentally-conscious businesses.

10. Improved Branding and Marketing Opportunities

Since hybrid events are typically perceived as innovative, progressive, and eco-friendly, they provide additional marketing and branding opportunities for your nonprofit.

You can incorporate many interactive elements, such as polls and breakout sessions, to improve engagement and encourage feedback. Event content can even then be repurposed for future marketing efforts.

Because hybrid events extend the space and time available for an event and its activities, they also allow your nonprofit to better position itself as an impactful organization in the sector. It is a terrific way to build an image as a “go-to” resource for content related to your cause.

Bonus Tips: Keys to a Successful Hybrid Event

Once you’re ready to hit the ground running with your next hybrid event, follow these tips to set your planning up for success:

• Create excitement. Identify aspects of your hybrid event that make it unique and exciting. Make the effort to include some “can’t miss” elements or even exclusive content. Create a buzz and build anticipation for your event by highlighting these elements.

• Promote on multiple platforms. Be sure to fully explain your hybrid event and what activities it will involve. Describe the differences between attending in person and virtually. Use every platform available to promote your event, including your website, email, social media, flyers, and more.

• Create a balanced agenda. Make sure your hybrid event agenda has a nice balance of content that includes live and pre-recorded videos, live cams, exclusive content, and interactive events. Keep virtual and live audiences connected.

• Keep sessions energetic and brief. The most engaging hybrid event sessions are frequently energy-filled and no longer than 20 or 30 minutes. Speakers should be coached accordingly. Sessions can also benefit from transitions that are smooth and seamless.

• Choose a platform carefully. Choose a reliable platform to stage your hybrid event and pay attention to production values and appearance. You want your online event to have a quality feel and appearance like your in-person event. Remember that your virtual event represents your nonprofit and its brand. While there are many advanced tools out there, audience expectations are higher than ever. Audio, video, and lighting should be impeccable for virtual and in-person attendees.

After your hybrid event, be sure to survey attendees to assess their satisfaction levels and get their feedback. This can be invaluable in planning future events. Of course, you should also gauge the success of your event by tracking traditional metrics like attendance, fundraising success, engagement, participation, and more.

When you recognize even just the major benefits of a hybrid event, you can realize why they have become so valuable and popular. What was once an alternative is now a desired featured event for many organizations and nonprofits.

If your nonprofit is looking to expand its reach and supporter base, explore just how far a hybrid event can take you. It can be an exciting, enlightening, and valuable way to take your event and organization to the next level.

As you gear up for a capital campaign, it’s crucial to ensure your board members are not just “on board” but are well-prepared for and enthusiastic about their roles in the campaign. 

Well-trained board members can be a game-changer for capital campaigns. Rather than being timid, anxious, and hesitant, they will be courageous, excited, and confident leaders who set the tone for growing your organization’s capacity. 

Here are six effective tips to train your board members as you prepare for your capital campaign. Trainings should touch on the three critical areas: understanding capital campaigns and board responsibilities, defining the roles board members might play, and learning how to assist in asking for gifts.

1. Introduce key capital campaign concepts. 

Begin your trainings with a clear, engaging session on what a capital campaign is, emphasizing its importance and how it differs from regular fundraising. Review the phases of a campaign and the idea that in capital campaigns, 50% of the funding will come from fewer than 20 donors.  

This basic campaign training should help board members answer their questions about what’s ahead:

• What is the likelihood our campaign will succeed?
• Where will the lead gifts come from?
• What will be expected from individual board members?
• Will the campaign cannibalize our annual fundraising?
• How long will the campaign take?

Use real-life examples, perhaps from similar organizations or past campaigns your group has undertaken. You might invite someone from an organization in your community that has completed a successful campaign to share what they learned.  

But as the campaign draws closer, you can engage a professional fundraising firm or consulting agency to do a campaign training for your board.  Both in-person and online trainings can work well. 

Any campaign training should highlight board responsibilities, stressing the importance of leadership, advocacy, and financial support. 

2. Plan interactive workshops that are fun and engaging. 

Board trainings should draw board members into discussion and exploration rather than simply providing information through lectures.  

Training doesn’t have to be dry. Consider bringing in a guest speaker with campaign experience to share stories and answer questions, making the process more relatable and less intimidating. 

Additionally, you can use games, quizzes, and interactive activities to make learning about capital campaigns engaging and fun. For example, to make a general campaign training interactive, you might create a “Campaign Quiz” that highlights key campaign concepts and then invite group discussion of each question. Small groups of board members can be assigned questions to discuss and then they can present their answers to the larger group. Tools like that can make this learning engaging and active. 

3. Try this simple and effective exercise to identify board roles in a campaign. 

In your training plan, you should develop an exercise to get board members to explore the roles they might choose to play in the campaign. You can use a portion of a board meeting for an exercise like this, or you can include it in a separate training.

Start by introducing the steps in the fundraising cycle: 

• Identify prospects.
• Educate and cultivate.
• Ask for gifts.
• Thank and recognize donors.
• Involve donors more deeply.

Use a flip chart page for each of these topics, putting one heading on each page. Post them on a wall so they are easy to reach. 

In small groups, get people to brainstorm the things they might do to offer support in each area. Then add those activities to the appropriate flip chart page. Once all the pages have been filled out, ask each board member to put their name next to the activities they would be willing to help with. The staff will then create a list for each board member of the ways they have agreed to help. Be sure to let board members know that not every board member must ask for gifts, but every board member should help in ways they are best suited to in order to support the campaign.

This training activity is easy to do and very effective. Your board members will learn that asking is only a small part of the fundraising process and that whether or not they are comfortable as askers, they will all have important roles to play.

4. Train your board members to ask for gifts. 

Some of your board members will be active solicitors. And you should make sure they are trained to do a great job. Equip them with the skills they need to ask for gifts in a way that’s respectful and effective. You will find several models for training people to ask for gifts. 

As with many things in life, the more people practice, the better they get. So, we believe that you should provide opportunities for your board members to practice as much as possible. Often, early asks made of people who are friendly to your organization can be considered practice! Simply let the donor know that you are still practicing and would like feedback after the solicitation is done.  

Casting the early solicitations as practice creates a safe space to try it out and receive feedback. Encourage board members to share their apprehensions and experiences, creating a supportive learning environment.

5. Teach them how to use technology and social media. 

With the rise of virtual meetings and digital platforms, board members should be comfortable using technology to engage with donors and promote the campaign. Offer training sessions on leveraging social media, managing virtual donor meetings, and using donor management systems effectively.

6. Schedule lots of trainings. 

Instead of one-off training sessions, integrate short, regular training segments into your existing board meetings. This approach keeps the campaign top of mind, allows for ongoing learning, and provides opportunities to address questions and challenges as they arise. This method can also help maintain momentum and ensure board members are up to date on campaign progress and strategies.

Trainings work best when the concepts learned are used in short order. So, rather than having one long training weeks or months before your campaign and assuming that’s all you need, your training process will be more effective if you plan lots of short trainings on concepts that board members will need immediately.

For example, in the planning phase of your campaign, you will work on developing a case for support. This will be a great time to design a special exercise at a board meeting on why board members care. 

Ask every board member to take a few minutes and write down five reasons they think the upcoming campaign is important, focusing on the impact of what the campaign will make possible. When everyone has finished writing, ask each person to share one of the items they wrote down. Go around the table until all the ideas have been captured. Capture the items on a flipchart.  

Once all the items are captured on one flip chart page, ask the group to decide which three items on the list are the most important. Those items are likely the key elements in your case for support. And this exercise will help board members internalize why the campaign matters to them. This exercise can easily be adapted for a virtual meeting using the whiteboard function in Zoom. 

You can devise simple participatory exercises like this to conduct at board meetings during other phases of the campaign as well. 

Board training for a capital campaign is not just about transferring knowledge; it’s about engaging and empowering your board members to take active, meaningful roles in the campaign. By making training participatory, fun, and ongoing, you lay the groundwork for a successful capital campaign driven by a committed, enthusiastic board. Remember, a well-prepared board is your campaign’s best asset.

Nonprofit organizations face unique challenges when it comes to board management. These challenges include limited resources, complex regulations and legal requirements, and the need for transparency and accountability among board members. In recent years, board management software has emerged as a solution to these challenges, helping nonprofit boards streamline administrative tasks, improve communication and collaboration, and increase transparency and accountability.

One of the most significant benefits of board management software is its ability to save time and effort for board members. Administrative tasks such as scheduling meetings, sending reminders, and sharing documents can be time-consuming and tedious, taking up valuable time that could be better spent on strategic discussions and decisions. Board management software automates these tasks, freeing up time for board members to focus on more important matters.

Automating administrative tasks can also help reduce errors and improve efficiency. For example, scheduling software can automatically send out reminders to board members and provide real-time updates on changes to meeting schedules. Document management software can automatically store and organize documents, making it easier for board members to find what they need quickly.

Improved communication and collaboration is another key benefit of board management software. With its ability to share documents, collaborate on projects, and communicate more effectively, board management software can help improve decision-making and make board meetings more efficient. Better communication and collaboration can lead to more efficient board meetings, which can ultimately save the organization time and resources. Enhanced communication and collaboration between nonprofit leaders can also help build trust and foster a sense of community. With board management software, board members can easily communicate with each other, share ideas, and provide feedback. This can help build relationships and strengthen the board’s overall effectiveness.

Board management software can also help ensure better transparency and accountability. By storing and accessing financial information, meeting minutes, and other necessary documents, board management software makes it easier to compile the information needed for annual filings such as Form 990. Additionally, the software can track attendance and board member compensation, which are necessary for reporting on Form 990. By automating administrative tasks and keeping all relevant information in one place, board management software can help ensure that nonprofit boards are more transparent and accountable.

Board management software can also help ensure that all board members are up to date with the latest information, promoting accountability and better decision-making. With the ability to access documents and information from anywhere, board members can stay informed and make informed decisions, even if they are unable to attend meetings in person. This can help ensure that the board is making decisions based on the best available information, rather than relying on incomplete or outdated information.

The software can also improve the security of sensitive information and reduce the risk of data breaches. By ensuring that information is secure and accessible only to authorized personnel, board management software can help protect the organization’s reputation and prevent potential legal issues. Board management software can help ensure that sensitive information such as financial data and personal information is stored securely and that access to this information is closely monitored and controlled.

When selecting board management software, there are several key features to consider. A user-friendly interface is essential for board members with varying technical abilities. The software should be intuitive and easy to use, requiring minimal training for board members of all technical levels. A user-friendly interface can make it easier for board members to access the information they need and perform tasks without requiring extensive training or customer support.

Innovative features are another critical consideration when selecting board management software. The software should include features such as scheduling meetings, sending reminders, virtual board meetings, sharing documents, tracking attendance, and creating custom groups. Having robust features can make it easier to manage board-related tasks and ensure that board members have access to the information they need to make informed decisions. The more comprehensive the features, the more useful the software is for the organization. You shouldn’t need multiple softwares to manage board governance. If your current board management software requires additional software like Zoom or Teams, it may be time to rethink your tech stack.

Customizable options are also essential when selecting board management software. The software should be customizable to meet the unique needs of each organization, committee, and team. This usually looks like private workspaces, drag and drop meeting agendas and cloud storage integrations. Having customizable options can make it easier to adapt the software to meet the specific needs of your nonprofit. This flexibility can help the organization manage its operations more efficiently and effectively. For example, the software may allow you to create custom groups for committees or working groups, or to set up different access levels for different board members depending on their roles.

Affordable pricing is also critical when selecting board management software. The software should offer pricing plans that are accessible to nonprofits of all sizes and budgets. There are even free options out there! Affordable pricing can help ensure that nonprofits can access the software they need to manage their operations effectively without straining their budget. Many board management software providers offer pricing plans based on the number of users or the number of features included, so it’s important to choose a plan that meets your organization’s needs without overspending.

It’s also important to consider the level of support and training provided by the software provider. Board members often need assistance with using the software, and it’s important to have a reliable and responsive support team to help with any issues that arise. Many board management software providers offer training materials, online resources, and customer support to help organizations get started and use the software effectively. It is best practices to find a solution that offers 24/7 (real-life) customer support.

Board management software can also help nonprofit organizations manage their resources more effectively. According to a report from the National Council of Nonprofits, “Board management software can help nonprofits to be more efficient, effective, and accountable in their governance practices, including budgeting, resource management, and oversight of compliance with laws and regulations.” By tracking attendance and board member compensation, the software can help ensure that the organization is staying within budget and meeting its financial obligations. Furthermore, the software can also help improve the productivity of meetings by ensuring that board members are using their time effectively. As noted by a report from TechSoup, “Using board management software, you can ensure that each board member comes to the meeting with a clear understanding of the topics to be discussed and can use their time effectively. This increases the likelihood of productive meetings that are focused and results-driven.”

Board management software can help streamline board meetings and make them more productive. With features like automated agenda creation, real-time note-taking, and action item tracking, board members can stay on track during meetings and ensure that they are making progress on important initiatives. The software can also help ensure that board meetings are inclusive and accessible, with features like video conferencing and remote access allowing board members to participate from anywhere in the world. By making board meetings more efficient and effective, board management software can help nonprofit organizations achieve their goals more quickly and with less frustration.

Board management software can also help improve the onboarding process for new board members. With features like a digital orientation portal and access to historical meeting minutes and other documents, new board members can quickly get up to speed on the organization’s history, goals, and current initiatives. This can help new board members become productive more quickly, contributing their skills and expertise to the organization more effectively. By providing a comprehensive onboarding experience, board management software can help ensure that the board is functioning at its highest level from the start.

Another benefit of board management software is that it can help nonprofit organizations manage their committees and working groups more effectively. With features like customizable groups and access levels, board management software can help ensure that the right people have access to the right information and can collaborate on initiatives efficiently. The software can also help track the progress of committee and working group initiatives, providing a centralized location for all members to stay up to date on progress and deadlines. By improving the management of committees and working groups, board management software can help nonprofit organizations achieve their goals more effectively and efficiently.

In conclusion, board management software is a valuable tool for nonprofit organizations looking to improve their effectiveness and efficiency. As noted by a report from the Stanford Social Innovation Review, “By investing in board management software, nonprofit organizations can streamline governance processes and improve communication, which can lead to stronger organizational performance and better social outcomes.” When selecting board management software, it’s important to consider factors such as user-friendliness, robust features, customizable options, affordable pricing, and level of support and training provided by the software provider. With the right board management software in place, nonprofit boards can save time, increase efficiency, and make more informed decisions. As noted by a report from the National Council of Nonprofits, “Effective board management software can help a nonprofit organization operate more effectively and efficiently, freeing up staff and board time to focus on the organization’s mission.”

The Difference between an Audit and Finance Committee, and Why You Need Both

For nonprofits, deciding on a board committee structure can be a challenge. Often, the decision is solely based on the number of board members and their talents and expertise.

However, proper financial oversight is essential to a nonprofit’s success. It ensures that the organization complies with applicable laws, acts with integrity, and is transparent with the public, stakeholders, and funders.

You are ahead of the game if you already have an Audit Committee. Many nonprofits rely on the Finance Committee if they even have one. An Executive Committee may also serve on it. The Committee that operates separately from the Finance Committee provides checks and balances in financial decision-making. In addition, it helps to minimize the organization’s fraud risk.

Read on to learn each committee’s specific roles and why having an Audit Committee and a Finance Committee is best practice for nonprofits.

Audit Committees

The Audit Committee serves as the Board’s liaison with the external auditor. The Audit Committee selects the auditor and meets with the external audit partner and team pre-engagement. It is the first body to review the preliminary audit report and meet with the external audit team after completing the engagement. The Audit Committee brings audit concerns to the Executive Committee. Ultimately, it recommends acceptance and approval of the final audit report to the Board of Directors.

Monitoring the annual financial audit is just one type of risk assessment in which an Audit Committee may be concerned. The Audit Committee should also review other types of risk resulting from competition, revenue uncertainty, or data security. Also, they should look at developed risk mitigation strategies.

The Audit Committee provides the first level of review and approval of the organization’s Accounting Manual. They ensure that the organization and Finance Committee comply with the internal controls and policies in the Manual. The Audit Committee provides oversight of the Finance Committee to ensure that the Treasurer and Committee are exercising proper stewardship of the organization’s accounting and finance function.

Audit Committees ensure that all tax forms, including the IRS 990, state and federal employment taxes, property taxes, and unrelated business income tax are filed on time. They also can if they disseminate appropriately.

On an annual basis, the Audit Committee should:

• Engage the auditor and oversee the audit process
• Review recommended edits to and approve the Accounting Manual
• Meet with staff leadership to review organizational risk and mitigation strategies
• Meet quarterly with the Treasurer to review the activities of the Finance Committee

Finance Committees

The first role of the Finance Committee is to review the organization’s financial statements regularly. This includes the Statement of Financial Position, the Statement of Activities (compared to the same period for the previous year and compared to the current year budget), and ideally, a Cash Flow Projection. The Treasurer should review financial statements monthly and the Finance Committee quarterly.  The Treasurer should report any concerns regarding the organization’s financial health to the Executive Committee and Board of Directors.

The Finance Committee should also check if the organization is following the internal controls and policies outlined in the Accounting Manual. The Finance Committee should review the preliminary budget and present the final budget to the Board in advance of the beginning of the next fiscal year. If the organization faces financial challenges, the Finance Committee should work closely with staff leadership to evaluate various scenarios and courses of action and present viable options to the Executive Committee and/or Board of Directors.

During each fiscal year, the Finance Committees should:

• Regularly review financial statements
• Review annual budget preparation
• Ensure proper financial record-keeping
• Notify Board leadership of significant financial concerns
• Meet quarterly with the Audit Committee

Understandably, not all nonprofit boards have enough board members to support both an Audit and Finance Committee. In that situation, it may make sense for your Executive Committee to assume the responsibilities of the Audit Committee. For those nonprofits that can support both, these committees will act in tandem to ensure the financial stewardship, compliance, and transparency that stakeholders and funders desire.

For more resources and free content for your organization, please visit us!

This spotlighted post was created by our friends at Chazin & Comany!

Building a Board of Fundraisers

Your board is a topic that can be anxiety-inducing for many. That’s right. Your boss. Or your boss’ boss. And you’re in the unenviable position of telling them their responsibilities. But fear not, there are ways to do so that will be well-received, informative, and hopefully inspiring. And we can help you get there! 

But first, let’s take the pulse of where you feel you are with respect to your board’s engagement. So, ask yourself the following: 

“Are my board members…”

• Passionate about the mission?
• Understanding of their role?
• Turning up to meetings?
• Helping at events?
• Doing fundraising?
• Donating!? 

The hope is you can say yes to the majority of these because these are the fundamental responsibilities of any board. And yes, of course, boards come in many shapes and sizes. Some are deeply engaged. However, some are decidedly less so. Some involve themselves in all the intricacies of the organization, and some take a very hands-off approach. But ideally, your board will be well-rounded and inspired. They should work towards your organization’s mission in partnership with staff and volunteers. If some of these primary criteria are not occurring within your board, it’s time to look at how to improve them.

Unengaged Members 

Do you have current members who are unengaged? Are they not coming to meetings or not participating in the goings-on of the organization? Or are they simply not present? If so, it’s a good start to have a chat with them. It’s important to work to understand why they’ve pulled away and discuss what to do to recapture their interest. If they aren’t passionate about your mission anymore, then it’s in both your and their best interests for them to resign. 

New Members

As far as new board members, that’s a larger scope. Of course, when we hire new staff, we don’t expect them to come into the role with all the knowledge of the job and exactly how to execute it. It takes weeks, months, and sometimes structured training to get them fully up to speed. So why would we treat our board members any differently? Unless they are former staff, they’ll unlikely come to you with nothing more than a surface knowledge of your organization. It’s your job to familiarize them with all the cogs and wheels that keep it running.

As the organizational leader, it will take investment to onboard (or reengage) them in such a way that they become as enthusiastic about the mission as you are. Share the stories with them. Give them a tour, and provide the opportunity to interact with your clients. Involve them in developing projects and have them sit with staff and volunteers. It’s crucial to the success of the mission to do whatever it takes to have them fully adopt what your organization is all about. 

It’s not enough to just gain and hold their interest. You need to develop an authentic relationship with them. You need to understand their capacity, availability, how they prefer to work, and what level of commitment you are likely to receive from them. 

So How Do You Build Your Board?

The IRS generally requires a minimum of three board members for every nonprofit. So your board should have, at a minimum, three individuals. But realistically, will your organization be truly served by so few? Are they bringing the comprehensive skill sets, the breadth of knowledge, connection, and enthusiasm your organization truly needs? Possibly, but unlikely. 

Instead, the average number of board members ranges between 8 & 15. Traditionally, they are community members of high social standing. Board members are often people of significant wealth, attorneys, bankers, accountants, and local governmental leaders. But that concept is changing. Often those figureheads go from board to board, and smaller communities recycle the same individuals over and over. Will they have the same passion for your organization as all the others? 

Consider thinking outside the box. You will want people with time to spare, energy, commitment, and those with connections in your community. Do not look only for people with financial means. Sure, the seasoned pros can lend invaluable advice. They also may be well versed in the intricacies of ensuring financial stability for the organization, but they’re also busy. Include board members who have a passion for enacting change. Think of individuals who have utilized your services because of their unique perspectives.

Vision & Mission

If your organization was just founded, your board will be instrumental in setting the organization’s vision and mission. But that’s not only true of fledgling nonprofits. As with all things, time and circumstances enact change, so it’s entirely possible your mission statement and vision may need to be updated. This update is not a one-person job. Take the pulse of your board at your next meeting and ask them and your staff if they feel the mission statement still holds true. If it doesn’t, there’s never been a better time than now to update and reinvigorate it. Encourage them to promote it loudly. It’s not just the staff and volunteers that need to be your biggest cheerleaders, and the board should be as well. 

You wouldn’t hire an advertising organization with a slogan like, “Our organization is pretty ok. We hope you think so too,” would you? No! You want your community to be impassioned by what you do, to want to be involved, and perhaps most importantly – give. Who better to drive that message than those at the helm? This brings us to the elephant in the room.

Board Member Fundraising

Boards play notable roles in governing the organization, determining its strategic direction, and setting policies to support the collective vision. However, with everything you depend on board members to accomplish, one duty that can easily get swept under the rug is fundraising. Your board members each committed to providing your organization with the resources it needs to thrive. Fundraising is a major part of that. But it’s not a favorite among duties for many boards. However, a culture of enthusiasm for board fundraising is hugely important for supplying your organization with the resources it needs to pursue its mission. 

Many boards have a minimum expected contribution amount upon joining, and some have expectations of gifting annually. However, that too is a bit of a dated model and limits board involvement to those with significant means. It’s worth considering rewriting your policy to indicate that a board member “should be giving at a level that is significant to them” rather than a set dollar amount. Not only does that create literal buy-in, but it also gives them a sense of investment.

 Next, remember that your board members are busy. And fundraising can be incredibly time-consuming. So to get the most mileage out of your board fundraising, consider creating dedicated fundraising committees. In other words, subsets of the board coupled with others from your existing volunteer pool or community members at large. Again, many shy away from fundraising, so it’s not a bad idea to get creative with naming the committee. Also, think about things like “Community Engagement Committee” or “Resource Development Team.” Less scary right?

Create a realistic fundraising plan

Next, create a realistic fundraising plan in tandem with the organization’s professional staff. Hopefully, the organization already has a plan for its resource development strategies, or at least the concept of one, and the committee should strategically use it for its foundation. It’s importan to review the plan annually and find out what worked well, which goals need to be amended, and what is just not practical. And work it accordingly. It’s easy to rally the troops and get people excited, but you must carry that enthusiasm through to fruition.

 Create accountability. Having a committee description, evaluations, and feedback will help keep people committed to their roles; just as with the board, keep track of committee and event attendance and follow through on commitments. If you have a committee member unable to follow through with those commitments, check in with him/her one-on-one to discuss it. Approach your board members and find out what they might need to be successful. And if it’s just not the right fit, that’s ok!  Perhaps they could be involved in other ways. After all, committees can be a fantastic pipeline to create engagement in various aspects of the organization.  And celebrate all the wins. Big and small.

 Thank, Thank, and Thank Again

Suppose you were in this person’s shoes. Would you feel slighted if you did mountains of good work, usually unpaid without any recognition? Would you sign on for another term or encourage others to get involved? This seems unlikely. 

We thank our donors. volunteers, and we should do the same for our board. They deserve recognition and consideration for all they do. When they go above and beyond, you should too when thanking them. If you haven’t been, start now. You’ll be amazed at their reaction. As always, make sure you’re doing so in a manner they would appreciate. 

And in that vein, we want to thank ALL the board members out there who are fighting that good fight with us supporting their communities. You are appreciated for giving hard-earned time, finances, and knowledge to help keep these nonprofits afloat. You’re creating needed change for us all. The world is better because you’re in it.

If you’re struggling with how to engage your board, create a new one, or empower them to fundraise, please reach out to us. We can help you develop your board and plan your fundraising. We want to be a true partner in your success.

This spotlighted blog post is courtesy of Innovative Nonprofit.