[Strategies for Success - Smart ideas delivered each Tuesday by Hartsook Companies, Inc.]
Smart ideas from Hartsook Companies, Inc.

December 1, 2009

Staff and Board Stewardship Responsibilities: Part I

Would you be surprised to learn that public confidence is at risk or that only one in 10 people believe strongly that charities are honest and ethical in their use of donated funds? Here is an excerpt from California attorney Gene Takagi's Nonprofit Law Blog that illustrates a few common nonprofit governance problems:

  1. Perspective. Members of the Board of Directors must understand the game has changed. It's no longer okay for nonprofit directors to ignore their fiduciary duties with the excuse that they're volunteers. If you accept the position, you accept the responsibilities and the associated exposure if they are not met. More than ever before, there is scrutiny by the IRS, state agencies, donors, the media, charity ratings organizations, and the public. And there are new requirements and methods for organizations to be more and more transparent - not only about their operations but also about their governance. The era of the inactive/celebrity/fundraising board member is over.

  2. A general lack of understanding of the laws that apply to a nonprofit and to its directors. It's critically important for directors to have a general understanding of the overlays of federal, state, and local laws. For example, if you're on the board of a charitable organization, do you understand the restrictions, limitations, and possibilities related to executive compensation, lobbying, political activities, earned income, business transactions with directors and officers, partnering with a for-profit, maintaining public charity status, audits, and operating in the zone of insolvency? If not, your organization may not be in compliance and/or not making full use of its abilities to further its mission. If that is the case, how well are you doing your job? Periodic training sessions for boards can be a valuable tool to help alleviate this problem.

  3. A lack of attention paid to the internal laws of the organization. Is the organization operating in furtherance of the exempt purpose stated in their governing documents? Do the directors really know, understand, and govern consistent with their bylaws and other governance policies? This problem often results when a board adopts bylaws that it copied from another organization without careful thought and consideration about how they work under different circumstances. It's far too common for nonprofits to ignore membership requirements they've inadvertently created, elect a different number of directors than is authorized, and not maintain officer positions and/or committees required under the bylaws.

- Norma Murphy, Executive Vice President, Kansas City

Editor's Note: Our next issue (December 15) will feature Staff and Board Stewardship Responsibilities: Part II


Free Teleconference: Growing Philanthropy in Greater Kansas City
Friday, December 11, 2009

Please join us for an energetic and insightful discussion of "Giving in Kansas City," a recent report commissioned by the Greater Kansas City Community Foundation and prepared by the Center on Philanthropy at Indiana University.

Our esteemed expert panelists include:

The Honorable Peggy Dunn, Mayor, Leawood
Laura McKnight, President and CEO, Greater Kansas City Community Foundation
Bob Regnier, President, Bank of Blue Valley
Bob Hartsook, Chairman and CEO, Hartsook Companies
Matt Beem, President and COO, Hartsook Companies

To register and receive conference call details, including call-in number and conference code, please RSVP to tammy@hartsookcompanies.com. Space for this complimentary teleconference is limited. Please make your reservation today and invite your friends and colleagues to participate.


Growing Philanthropy Conference
January 22, 2010
Westin Crown Center, Kansas City

Mark your calendars. This is an event you won't want to miss!

For too long, fundraisers have competed with one another for a bigger slice of the same philanthropic pie. What if fundraisers knew how to expand the pie?

For the first time, leading philanthropists, fundraisers, academics, and nonprofit professionals will gather to address the goal of increasing philanthropy. Additional details coming soon! Contact info@hartsookcompanies.com for priority registration.


On the Web


Global Reach; International Flavor

Our mantra "Fundraising Counsel Worldwide" illustrates the global reach of our company. To better accomodate international clients and prospects, Hartsook Companies' website can now be translated into 40 lanuages via the Google Translate button on our home page.


Another Smart Idea...From the Hartsook Best Practices CollectionSM

"We mine the collective stories of our patients and alumni to discover what works best in our treatment programs and share those with others to inspire giving." - Father Martins Ashley, Chief Operating Officer, Todd Whitmer, Chief Operating Officer, Havre De Grace, Md.

If you are interested in Best Practices and smart ideas, see these additional resources from Hartsook Companies:

For a free copy of "Best Practices Coast to Coast" or the "Hartsook Best Practices Collection", please email Tammy Weinman, tammy@hartsookcompanies.com, or visit our web site. We also invite you to contribute your own best practice by emailing Annette Lough, annette@hartsookcompanies.com.

Visit the Hartsook Companies web site for:

• Educational opportunities
• Books/reference articles
• Conference/workshop speakers

Strategies for Success explores smart ideas, connecting with more than 2,000 fundraising professionals bi-weekly. We welcome your contributions or comments. Send to Strategies for Success editor Annette Lough, annette@hartsookcompanies.com. If you'd like a free subscription to Strategies for Success - or its monthly companion, eHartsook on Philanthropy - contact Tammy Weinman, tammy@hartsookcompanies.com. You also can reach her at 316.630.9992.

Our web site is located at http://www.hartsookcompanies.com.

[hartsook companies]