1. ADVOCATE CHARITABLE FOUNDATION CONFERENCE Board Development: Recruit, Engage and Transform Kathleen O’Connor Corporate Vice President September 12, 2012

2. 2 Objectives  Review the purpose, responsibilities and life cycles of boards  Understand the ideal composition of your board and identify opportunities to strengthen this important leadership team  Discuss resource development and fundraising expectations and why it is an important component of service

3. 3 Session Outline I.Board basics II.Recruitment strategy 1.Analyze 2.Identify 3.Inform & Assess 4.Recruit 5.Orient & Engage III.Board engagement in philanthropy IV.Board transformation

4. 4 Advocate Leadership Bodies  Advocate Healthcare Board  Advocate Charitable Foundation Board  Development Councils  Governing Councils

5. 5 I. BOARD BASICS Board Development: Recruit, Engage and Transform

6. 6 Boards – What Are They Good For… Strategy: To give the organization direction, establishing its vision, mission and values Oversight: To provide oversight, especially in financial matters, to ensure accountability Participation: To ensure the organization has the resources it needs to do its work

7. 7 Basic Board Responsibilities Determine the organization's mission and purpose Provide proper financial oversight Ensure adequate resources Ensure legal and ethical integrity and maintain accountability Ensure effective organizational planning Recruit and orient new board members and assess board performance Enhance the organization's public standing Determine, monitor and strengthen the organization's programs and services Source: BoardSource

8. 8 Typical Board Structure & Committees Executive Committee Finance Committee Development Committee Audit Committee Personnel Committee Investment Committee At Large Members Source: BoardSource

9. 9 Important Committees Nominating Committee Establish the responsibilities and expectations for incoming Trustees Identify and evaluate potential leaders Develop and propose candidates Nominate current Trustees to serve as officers and members of committees for Board approval Development Committee Set policies for fundraising programs Provide oversight Participate Attend Connect Identify Solicit Thank Host/attend events throughout the year Ensure a fundraising plan is in place Planning (as appropriate )

10. 10 Board Lifecycle Start-up Adolescent Mature Defunct Stagnant Board plays hands-on role in oversight and management Board relinquishes its operational role and focuses on advice, oversight and long-term planning Increases policy, oversight and fundraising role. Expands, diversifies, formalizes structure. Continually assesses performance and composition, roles responsibilities and structure to stay effective. A Board can avoid this stage if it learns to adapt to new circumstances and opportunities A healthy organization will work to stay at “Mature” stage to avoid “Defunct” status

11. 11 II. RECRUITMENT STRATEGY Board Development: Recruit, Engage and Transform

12. 12 Maintaining an Effective Board 1.Analyze 2.Identify 3.Inform & Assess 4.Recruit 5.Orient and Engage

13. 13 1. Analyze AgeProfessional Expertise GenderGeographic Representation EthnicityYears on Board Capacity/ConnectionsCommittee Participation Analyze current board size and composition by developing a board matrix focusing on the following: Review committee structure and committee descriptions Finalize election process and board contracts Ensure appropriate succession planning Compare board activity to peer groups Determine areas of weakness

14. 14 What Funders Want to Know About Your Board  Diversity and inclusiveness  Support mission  Personal involvement  Solid partnership between board and CEO  Financial support and 100% contribution

15. 15 Board Member Diversity and Talent Demographics Constituency/Affiliation − Community − Corporate − Small Business − Government/Public Sector Skills/Experience − Accounting − Applicable Sector Experience (Healthcare) − Development − Finance/Budgeting − Human Resources − IT − Law − Marketing/PR − Nonprofit Management − Planning − Real Estate Committee − Board Development − Finance − Programs/Operations − Fund Development − Leadership/Board Experience − Leadership Experience − Board or Corporate Governance − Nonprofit Board Experience Fundraising (Potential and Activity) − Significant Philanthropic Influence − Corporate Board or Affiliation − Foundation Board or Affiliation − Significant Wealth Indications − Donor to Organization ($XX,000+) − Prospect for Organization ($XX,000) − Willing to Serve on Event Committee − Willing to Host/Cultivate − Willing to Open Doors/Introductions − Willing to Participate in Solicitation

16. 16 Board Composition Evaluation Tool

17. 17 2. Identify  To fulfill the organization’s mission and long-range goals and objectives, a board must seek qualified candidates in all areas that can help the organization succeed  Establish a pipeline of candidates −Current supports −Event participants −Community leaders −Business leaders  Conduct research  Qualify candidates Enthusiastic & informed Supports plan & case Participates in meetings Gives time Willing to fundraise Not afraid to ask Does good follow-up Makes good annual gift Supports capital drives Helps recruit top people Attends special events Influences corporate/ foundation gift

18. 18 3. Inform & Assess  Have an up-to-date Board Nominee Orientation Manual for use in preliminary briefing meetings with Board prospects  Explain board roles and responsibilities and expectations  Rely on a standard cultivation process by encouraging potential prospects to serve in key volunteer roles to assess their diligence and gauge their ability and strengths  Check references

19. 19 4. Recruit  Strategize best approach  Clearly define the role and commitment  Make the ask  Recruitment tools Mission StatementRecruitment Prospectus Case for SupportCandidate Tracking Chart Funding Needs ListBoard Member Roles and Responsibilities Board Member ListGood and timely follow up

20. 20 From Identification to Scheduling the Meeting Profile Research Current Donors Research Corporations/ Foundations Research New Prospects Create 2 lists: Current Donors and New Prospects. Include 3-line Bio. For top 50. Trustee/Nominating Committee reviews list. Rank List. Share with Board Create Prospect Profiles for top candidates Schedule cultivation meeting with prospects Prospect Identification with Nominating or Trustees Committee Is this a good candidate? Do you know him/her? Can you contact him/her?

21. 21 5. Orient & Engage Develop a systematic method for on- boarding new Board members: – Provide new board members with a Board member handbook – Provide an Orientation Presentation two to three times per year – Establish working relationships with new members and design their particular roles – Immediately appoint new Board member to serve on at least one active Committee of the Board – Continue to educate Board members about the Board Development activities – Designate a Board member to manage new Board Relationships – Introduce new Board member at next event

22. 22 III. BOARD ENGAGEMENT IN PHILANTHROPY Board Development: Recruit, Engage and Transform

23. 23  Attend  Advocate  Explain  Introduce  Invite  Invest  Thank Board Engagement in Philanthropy Work

24. 24 Board Member Giving  Industry Standards −46% of charities have 100% board giving −Boards average 74% participation −64% of charities require contributions from board members −100% board giving should be an expectation  The give-and-get commitment Source: BoardSource

25. 25 Why are Board Members the Best Fundraisers?  Board members are the volunteer group closest to the organization  They are one of the strongest voices for the organization  Their participation in fundraising efforts send a clear signal of commitment  They bring credibility to the solicitation process

26. 26 Roles to Play in the Major Gift Process

27. 27 The ABC’s of Major Gifts CULTIVATE/ INTRODUCE BRIEF ASK Status Of Prospect  A meeting or activity to cultivate interest in organization  A pre-ask briefing  An immediate and direct request for financial support Action To Be Taken  Schedule a meeting with Board Members  Invite to a reception, event, breakfast, or other cultivation activity  Prepare a case statement  Prepare a giving opportunities list  Prepare a briefing/script for briefer(s)  Schedule a briefing  Prepare a custom case statement and request materials  Determine the solicitation team  Prepare a briefing/script for solicitor(s)  Schedule the request meeting

28. 28 IV. BOARD TRANSFORMATION Board Development: Recruit, Engage and Transform

29. 29 Board Transformation  Best led from the inside  Requires a champion  Starts with understood roles and guidelines  Restate/reprioritize purpose  Recruit for transformation  Retirement is a natural part of this process  Requires ongoing attention to maintain

30. 30 Boards and Fundraising: Good to Great Ask These Questions..  What is our mission?  How do we further it?  Do we have the leadership to achieve it?  Do we have the resources to fund it?  Are we equipped to raise the needed resources?  Are we protected?  What would we do with $1 million dollars?  What is our/my role?

31. 31 Board Giving Essentials Clear Expectations Board Campaign Face-to-face Solicitation Personal Financial Requests Highest/high Philanthropic Priority Good Great Participate in Development Job Description Structure for Success 100% Giving

32. 32 Questions