The ASU Lodestar Center 18 th Annual Nonprofit Conference On Sustainability Strategies Your Board: Just a Monthly Meeting Group? Or Your Best Source for.

The ASU Lodestar Center18th Annual Nonprofit Conference On Sustainability

Strategies

Your Board: Just a Monthly Meeting Group?

Or Your Best Source for Great Ideas?

October 14, 2010

Clyde W. Kunz, CFREPamela Doherty, CFRE

Overview

Lodestar Center 18th Annual Conference on Sustainability Strategies

Your Current Board …Questionnaire Effects of the Recession Thinking Differently

Recruitment, Ongoing Board Development Sharing of Business Acumen Strategic Discussion

UBIT Your Current Board - Discussion Resources

Getting Started

Questionnaire

Why do we have Boards?



“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.”

Peter Drucker

“The Great Recession”


Investors scared – DJIA dropped 49% Homeowners frightened – Phoenix home

values fell 48% Unemployment high / prolonged (9.6%

or 14.9 million Americans) Private donations down 3.2% in 2009

and 2.4% in 2008



Only 35% of NPOs cut annual budgets from 2008 to 2009

NPOs in US: 1M in 2005 1.4M at the start of recession 1.57M today

Growth in demand for NPO services



The recession and your Board: Recruitment − Board meetings Composition − Board focus

Innovation?

New/different threats/opportunities?


“Nothing is less productive than to make more efficient what should not be done at all.”

Peter Drucker

Thinking Differently


Targeted Board recruitment

Ongoing Board development

Sharing business acumen

Promote ongoing discussion re revenue-generation

Targeted Recruitment


Systematic identification and cultivation

Expanded levels of “diversification”

Board composition

Board Development

Supported by: Systematic process Clear expectations Job descriptions Continuing ed./tools

Accountability Communication Respect for time Ongoing appreciation

•Don’t forget retention

•How is this different from pre-recession?

Business Acumen


Current needs demand different skills

Individuals with new revenue ideas

Recruiting

Avoiding recruiting pitfalls

Board Discussion of Ideas


“Revenue idea-generating” part of job

description

Supported/encouraged by committee structure

Processes for decision-making and evaluation

Board Discussion of Ideas


Strategic Discussion

Planning and preparation Clear objectives / desired outcomes Methodologies for board & committee

meetings “Culture of curiosity” Time!

The Question of UBIT


Income from a trade or business

Regularly carried on

Not substantially related to the organization’s exempt purpose

Generates $1,000+ gross income: form 990-T



Not necessarily a bad thing!

Income taxable at corporate rates

If UBI becomes “substantial” compared to exempt-function activities, could jeopardize non-profit status



Exemptions: Businesses selling donated goods Businesses using primarily volunteer labor Businesses that provide a service to the

NPO’s ‘members’

Additional Information: www.nonprofitexpert.com

Questionnaire

Would you like to be able to change any answers?

What are the first steps you need to take to make those changes?

Who else needs to be brought into the discussion?

Does that discussion require information from outside the organization? Lodestar Center 18th Annual

Conference on Sustainability Strategies

Resources


Web-based resources for Boards Trainings through the Non-profit

Management Institute

Board self-assessments

Focus Retreats / workshops on revenue-generation

THANK YOU!

Presentation Handouts at www.ClydeKunz.com

(520) 449-3967

[email protected]

(520) 977-4019

[email protected]

The ASU Lodestar Center 18 th Annual Nonprofit Conference On Sustainability Strategies Your Board: Just a Monthly Meeting Group? Or Your Best Source for.

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