1. Board Roles, Responsibilities and Best Practices www.new.org © 2007-10 NEW (Nonprofit Enterprise at Work, Inc.), a 501(c)(3) nonprofit organization 1 April 25, 2013 6:30 pm – 8:00 pm Diana Kern, Vice President CHARTER SCHOOLS

2. AGENDA 2 1.Charity/Nonprofit Boards versus Charter School Boards 2.Serving on a Board 3.Duties of a Board Member 4.Group Dynamics & High-Performing Board Cultures 5.Work of the Board 6.Discussion

3. 3 501C3 Charter Schools Charter Schools

4. 4 47,000 nonprofits in Michigan – 67% are 501C3 nonprofits Board members are chosen by peers and picked for (1) love of mission, (2) skills, (3)demographics, and (4) willingness to fundraise Average size today is 13 - 16 71% have terms and term limits NONPROFIT LANDSCAPE Source: Michigan Nonprofit Association 2009

5. THE NONPROFIT SECTOR 5 Source: The Independent Sector Website, 2012 Three quarters of all nonprofits have annual expenses under $500,000 Accountable to their stakeholders Most are not required to have open meetings but most are transparent More than 17 million volunteer board members Expectation for mission accomplishment & metrics – IRS/Guidestar

6. Charter Schools 6 Source: Michigan Association of Public School Academies 2013 There are 232 charter public schools in the state of Michigan, with over 100,000 students in attendance Funded by state and federal taxpayer dollars and have authorizers Required to have open meetings Roughly four out of five charter schools in Michigan have contracted with a service provider Board members are appointed, non-paid, public servants

7. Why Volunteer to Serve? 7 Help an organization achieve its missionLeverage existing or develop new management skillsBroaden your personal and professional networksDemonstrate a commitment to your community SOURCE: NEW survey of nonprofit board members 2011

8. Why Serve on a Charter School Board? 8 Act as a guardian of public trust – oversight at highest level Support the schools mission, believe in it, and are willing to advocate for it and possibly fundraise for it Personal commitment to legacy Demonstrate a commitment to the future of youth in your community SOURCE: National Research Center on Charter Schools 2009

9. Pure Volunteer V. Appointed Members 9 “Some people think that appointed board members are less engaged and less accountable than those that arrived at the table seeking to provide their skills, time and resources.” What do you think?

10. STANDARDS OF CONDUCT 10 “Board members need to come prepared, rise to the occasion, work diligently as a group, and expect to be intellectually taxed by complex and consequential questions.” Chait, Richard P., William P. Ryan and Barbara E. Taylor. Governance as Leadership: Reframing the Work of Nonprofit Boards. BoardSource, 2005. P 180.

11. STANDARDS OF CONDUCT (DUTIES)… 11 Duty of CareDuty of LoyaltyDuty of ObedienceDuty of Confidentiality

12. DUE DILIGENCE 12 1. Understand your role - this includes asking questions 2. Review key documents 3. Review funding and financials Yes, you must read…a lot!

13. PARTNERING 13 “Regardless whether a charter school is self- managed or the management is contracted, student achievement responsibility lies with the board of directors,” Brian Carpenter, 2007, a Charter School Board Member Your professional, respectful and mutually focused relationship with your head administrator is critical Clear expectations create trust – The board should say what it wants and the management of the school determines {as the subject matter experts} how to achieve it Use your “dashboard indicators” and “performance reports” to focus on decision making Making the tough decisions

14. THE WORK OF THE BOARD 14 Board Operations Strategic Planning Resource Development Oversight Ambassadorship

15. THE WORK OF THE BOARD 15 Board Operations Composition & Recruitment Orientation & Education Structure – Meetings/Committees Effectiveness & Evaluation

16. Managing versus Governing 16 Considerations Effective board chairs do make a difference Trust and group norms critical to effectiveness Coaches versus Owners Staying out of the weeds Roberts Rules

17. ORIENTATION AND EDUCATION 17 Orientation Best if use a self-guided orientation checklist Educate, inform, clarify role and inspire! 90-day window Educating the Board – Use Your Resources Provide reports on program and mission achievement External education on board roles and trends “How-to” topics, like fundraising, understanding financials, etc. Conduct regular assessments to determine board performance

18. EFFECTIVE MEETINGS 18 Efficienc y How often? Attendance Strong facilitation

19. 19 Source: BoardSource Nonprofit Governance Index 2012 & NEW survey of nonprofit boards 77% of boards have written charters for committees BOARD COMMITTEES If organized correctly they reduce the pressure on the board Trends include having the board meet less frequently and committees that meet more Training ground for future appointees

20. 20 BOARD COMMITTEES S Specific M Measurable A Attainable R Realistic T Timely Organize the work of the board May be ad hoc or standing committees Non board members can serve on non-governing committees Develop SMART goals for committees annually

21. THE WORK OF THE BOARD 21 Strategic Visioning Provides focus and establishes priorities Maps out a path for resource development and needs Opens opportunities for innovationRequested, required and adds legitimacy

22. STRATEGIC FILTERS 22 The reason boards exist is to ensure that the charter schools mission and metrics are achieved These should be the primary focus when transacting board business Resource use, development, management and effectiveness Financial priorities Accountability

23. THE WORK OF THE BOARD 23 Resource Development Financial Physical Outcomes Contacts

24. THE WORK OF THE BOARD 24 Oversight Financial Student s Legal

25. 25 FINANCIAL OVERSIGHT Setting up and monitoring key financial indicatorsEnsuring adequate control mechanismsApproving the budgetOverseeing the organization’s legal obligations

26. 26 What to Expect Periodic financial reportsInspirationAnnual BudgetsScores & Performance Reports

27. THE WORK OF THE BOARD 27 Ambassadorship Advocate for mission and purposeEnhance public standing of charter schoolsSpeak as a unitWhat is your schools marketing plan and brand?Maintain crisis management plan

28. SPECIAL CONSIDERATIONS 28 Make sure you match the life-cycle of the school to board member time availability and desired culture It may take some time to find the perfect board match…and you should care The recruitment process will be different for each board and each candidate

29. 29 Discussion

30. THANK YOU FOR PARTICIPATING! 30 Diana Kern dkern@new.org Phone: 734-998-0160 www.new.org We thank our BoardConnect funding partners: