New Year Resolutions

With a New Year come resolutions about health, family and life.  Association executives might consider management resolutions to improve the organization.

1. Member Service Excellence – Member requests should not be viewed as work interruptions.   Create a “Member Service Pledge” to promote high standards of member service.  Use it as a staff and board-training tool; display a copy in the office.

2. Executive Sessions – If you’re left out in the cold meeting after meeting, find a polite way to say “executive sessions” without good reason can put the organization at risk and are a thing of the past.  They create suspicion, discussions may deviate from official business and seldom are minutes recorded to protect participants.

3. Confidentiality – Volunteers who leave meetings voicing disagreement with consensus-based outcomes compromise governance.  Create a confidentiality statement and remind volunteers not to leave board packets and budgets in meeting rooms and on airplanes.

4. Review D & O - If the board believes “voluntary immunity” protects the organization – read them a fairytale.  Make purchasing directors and officers liability insurance a 2004 priority.  If you already have D & O, give the policy to an attorney to determine if the CEO is named, and all activities, committees and chapters are covered.

5. Operating Manual – Staff members who keep all the information in their heads are great --- until there is a sudden departure.   Make a resolution to have staff document responsibilities; storing them in a comprehensive operations manual.   Enforce the practice at the annual performance evaluation, “Have you documented all your work and responsibilities?”

6. Conduct a Legal Audit – Every 2 to 3 years ask an attorney specializing in nonprofit law to review contracts, insurance, minutes, policies, personnel manual, etc.  Assure the board that risks have been reduced or eliminated.

7. Insist on a Financial Audit – Following an embezzlement of $400,000 the board told me they didn’t do an audit because of cost!   Whether or not to audit should NOT be at the discretion of changing leaders or the CEO.  Adopt a policy for an annual audit, review or compilation. 

8. Protect Reserves – If you have no reserves, adopt a policy (minimum goal) of 50 percent of the annual operating budget.  If large reserves exist, develop a plan for the funds so that next year’s board does not drain the fund or “slash member dues and spend reserves.”

9. Act Strategically – It is hard to govern strategically without benefit of a strategic plan.  It serves as a roadmap for leaders and staff --- driving them to achieve the mission.    If you have no plan, budget for and make time for a goal setting session or planning retreat.

10. Filings – File the appropriate CCRA return (charity or non-profit), the required corporation annual filing, and a corporate tax return.  Failing to file can be costly!

{American version} Bylaws –Tell the IRS – The IRS requires a copy of amended bylaws when the tax return is filed (form 990, Part VI, questions 77.)   If amendments were made in 2003, be sure the IRS, the board orientation manual and the office have the accurate copy. 

11. Book Club – Create a library of books for staff to read and discuss in meetings.  Recommended titles: Good to Great (core purpose and goal setting), Bowling Alone (decline in membership organizations) and E-Myth Revisited (systems approach to management.) 

12. Privacy Act provisions – Make sure you know which privacy provisions apply to your organization, and ensure compliance.

{American version} Sarbanes Oxley – States may apply the American Competitiveness and Corporate Accountability Act to non-for-profit corporations.  The requirements for audits, ethics, documentation and management affirmation may be a model for associations to follow, whether or not it is yet official. Visit http://www.aicpa.org/info/sarbanes_oxley_summary.htm for more information.

The best advice for executives is to gain control.  If crisis management is your style, and micro-management the board’s style ---- take a deep breath, stand back, prioritize and resolve to make improvements in 2004.  For copies of the “Member Service Pledge” and other resources, visit www.nonprofitcenter.com.

Bob Harris, CAE, focuses on nonprofit systems of efficiency, risk management, effective boards, and strategic planning.   Contact bob@rchcae.com.

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