610 Smithfield Street, Suite 400  Pittsburgh, PA  Fee-based investment management and securities offered through LPL Financial. Member FINRA/SIPC Being an Effective Board Member Robert Fragasso, CFP® Chief Executive Officer Dotti Bechtol Fiduciary Asset Business Development Officer

Nonprofits are required to have boards – The board is the strategic and financial leadership – Has legal and ethical obligations – Provides oversight and helps set policy Executive Director has responsibility to keep board informed – ED is responsible for day-to-day operations and enforcing policies 1

Together the Board and the Executive Director – Achieve the goals and mission of the organization – Board members help ED to be effective – Common goal of success of the mission 2

Identify the kind of expertise needed Create a recruitment plan Design an orientation 3

Get to know the board members individually Addresses tensions/issues early Keep members engaged 4

Act as a fiduciary representing the community Provide strategic visioning to accomplish the mission of the organization Advocate for the mission and programs of the organization in the community Help to guarantee the perpetuity of the organization by raising adequate funding 5

Act as a fiduciary Vision and mission accomplishment Advocate Fund development 6

Learn about the organization Contribute time beyond board meetings to serve on committees and participate in ad hoc board projects Advocate wherever he or she goes Contribute money Raise money 7

1.Serving on the board solely to think big thoughts 2.Others are in charge of raising necessary funding 3.Focus should be only on areas of interest, for example, operations or finance 4.Boards should manage staff 5.I will get business out of being a board member 8

1.Inadequate new member orientation 2.Ongoing failure to promote a complete understanding of the organization’s mission, structure and operations 3.Inefficient board structure 4.Rubber stamp officer elections 5.Lack of or non-staggered term limits 6.Poor communication within the board and to staff and constituents 9

7.Recruiting only on ability to contribute 8.Insufficient or overly-detailed financial data 9.Scarcity of financial expertise on the board 10.Failure to retain experienced board members 11.Most importantly: lack of strategic visioning 10

Work with board officers and key influencers to identify areas of insufficiency Gain outside funding and consulting to correct the board’s structural problems Create or activate a Board Governance Committee to create and implement reforms and to recruit appropriate new board members Educate the full board on key issues concerning the organization Follow your convictions 11

1.Articulate and publicize the mission of the organization 2.Set annual and longer term goals and objectives for accomplishing the mission 3.Identify the correct board and committee structure 4.Set term limits and procedures for rotation and cultivation of new members 5.Create the proper relationship for working with the agency’s management. That includes objective setting and measurement plus rewards for accomplishing. 12

6.Continue to educate the board’s members on the mission, objectives, operations and needs (especially financial) of the organization 7.Create and manage an effective fund development mentality and action plan within the board. (Gifts and sponsorships are better than events.) 8.Board leaders must coach and mentor newer board members 9.Celebrate successes and then set higher goals – always get better in the service of the organization’s constituency 13

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Robert Fragasso, CFP® Chairman and Chief Executive Officer Dotti Bechtol Fiduciary Asset Business Development Officer