APPENDIX 4B
SUMMARY OF TRUSTEE RESPONSIBILITIES AND QUALIFICATIONS

BOARD OF TRUSTEES

SUMMARY OF RESPONSIBILITIES Members of the board of trustees of a nonprofit organization must assume their role with a full understanding of the accountability and liability, both personal and organizational, resulting from their service in their particular state. Specific responsibilities include but are not necessarily limited to:

• Determine the organization's mission and ensure that it is being carried out, as documented by federal and state law.
• Set policies for ensuring that the organization operates according to its bylaws, the law, and ethical standards.
• Ensure compliance with the rules and regulations set by federal, state, and local governments that have jurisdiction over it (e.g., filing tax returns with the IRS).
• Make certain that donated funds are used for the purposes of the organization, as prescribed by the donor.
• Fulfill the legal requirements of the organization as an employer, including the payment of payroll taxes for the organization's employees.
• Develop the organization's overall program and engage in long-range strategic planning to establish its general course for the future.
• Oversee the financial health of the organization and establish fiscal policy and boundaries with budgets and financial controls.
• Provide adequate resources to operate the organization through direct financial contributions and a commitment to fundraising.
• Select and evaluate the performance of the executive director/chief executive officer.
• Develop and maintain a communication link between the organization and the community in promoting its work.
• Monitor the performance of the organization to maximize the welfare of the public.
• Represent the organization and its mission to the public.

QUALIFICATIONS Trustees must possess these qualifications:

• Strong commitment to the mission, goals, and objectives of the organization
• Time, energy, and expertise required to make a significant contribution
• Skills and experience in organizational, financial, and human resource management and strategic planning
• Ability to address issues and problems analytically, creatively, and decisively
• Strong leadership, interpersonal, and networking skills
• Familiarity with federal, state, and local laws and regulations governing nonprofit organizations
• Honesty, integrity, dedication, and positive attitude

BOARD CHAIR

SUMMARY OF RESPONSIBILITIES The chair's overarching responsibility is to lead and motivate the board of trustees in concert with the ED/CEO. Specific responsibilities include:

• Focus the board on fulfilling its short- and long-term responsibilities and developing a clear vision for the future.
• Provide strong leadership and direction to the board, and develop ways to enhance its effectiveness.
• Represent and speak on behalf of the board concerning its decisions, actions, and related activities in interactions with the media, donors, and other constituencies of the nonprofit organization.
• Serve as the board's conscience and disciplinarian in order to control inexperienced or misguided trustees, prevent factionalism and other practices harmful to the board's reputation, promote teamwork and collegiality, and uphold ethical standards.

QUALIFICATIONS The chair must demonstrate these qualities:

• Exemplary record of service and contributions to the board that has earned the respect and trust of the membership
• Clear understanding of the respective responsibilities of the chair and the ED/CEO, and the ability to work cooperatively with the ED/CEO toward common goals
• Excellent command of all aspects of the nonprofit organization, including strengths and weaknesses, and the ability to focus the board's attention on both short-term needs and a long-term vision
• Close ties with business leaders, potential donors, government agencies, and others who can be of assistance to the nonprofit organization
• Strong organizational, communication, listening, motivating, decision-making, and public speaking skills
• Sensitivity, objectivity, foresight, loyalty, and discretion

EXECUTIVE DIRECTOR/CHIEF EXECUTIVE OFFICER

SUMMARY OF RESPONSIBILITIES The ED/CEO of a nonprofit organization is appointed by and reports to the board of trustees and has primary responsibility for the day-to-day operations. Specific responsibilities are to:

• Manage the financial operations of the organization to include internal control, review of financial statements, and monitoring of all financial details to ensure their accuracy and integrity.
• Ensure that all programs, services, and activities contribute to and are in sync with the organizational mission, goals, and objectives.
• Implement and monitor compliance with policies related to the organizational bylaws, the law, and ethical standards.
• Select, supervise, and evaluate the performance of key positions, including the treasurer/chief financial officer.
• Develop and maintain close working relations with trustees, staff, donors, and the community at large.

QUALIFICATIONS The ED/CEO must possess these qualifications:

• Master's degree in business or the equivalent in a related field
• Extensive skills and experience in providing leadership and direction for all aspects of a large, complex nonprofit organization
• Proven ability to effectively manage financial, human, capital, and other organizational resources
• Excellent organizational, motivational, and interpersonal skills
• Familiarity with federal, state, and local laws and regulations governing nonprofit organizations
• Honesty, integrity, dedication, and positive attitude

TREASURER/CHIEF FINANCIAL OFFICER

SUMMARY OF RESPONSIBILITIES The role of a nonprofit treasurer, or chief financial officer where that individual serves as the officer in lieu of the treasurer, entails these responsibilities (assuming that the organization does not have both a board treasurer and a separate chief financial officer; if it does have both, these responsibilities would be split between the two individuals):

• Develop a financial structure for the review and approval of the board of trustees.
• Safeguard the financial assets and maintain the financial records.
• Define appropriate standards of behavior for fulfilling the finance function within the organization.
• Prepare timely and meaningful financial statements.
• Plan and implement fundraising programs and explore planned giving opportunities.
• Comply with external reporting requirements.
• Develop and implement appropriate budgeting practices and procedures.
• Respond to operational changes affecting financial needs.
• Report financial results to the ED/CEO and board of trustees.
• Supervise and empower employees engaged in the organization's financial activities.
• Serve as a key participant in teams engaged in addressing multifaceted organizational problems.
• Play an integral role in organizational decision-making and creative problem solving.
• Develop and implement systems for internal and external information sharing related to the organization's finances.
• Work with program heads to represent their interests, explain the story behind the numbers, and clarify the business impacts during every step of the planning and budgeting process.
• Present to the ED/CEO and board of trustees a balanced picture of what is happening with the liquidity, financial position, and degree of cost coverage of major programs as well as for the organization as a whole, where the problems lie, and what actions need to be taken.

QUALIFICATIONS The treasurer/chief financial officer must possess these qualifications:

• Training and experience in financial management and knowledge of the treasury function, generally accepted accounting principles, and internal control systems
• Knowledge about the organization's mission and programs and their relationship to the financial requirements and components
• Technical expertise in developing budgets and preparing financial statements
• Operational expertise
• Interpersonal communication and decision-making skills
• Honesty, integrity as evidenced by background check and ability to be bonded, and commitment to the organization's mission, values, and goals

SECRETARY

SUMMARY OF RESPONSIBILITIES The responsibilities of the secretary are reflected in the nonprofit organization's bylaws and standing orders and include these major functions:

• Plan board meeting calendar and individual meetings, develop and distribute agendas, and provide for the staffing needs of the board and its committees.
• Prepare and disseminate minutes, resolutions, policy statements, and board correspondence.
• Review and maintain bylaws and standing orders.
• Serve as custodian of official corporate documents and records.
• Coordinate and facilitate all board meeting arrangements, including travel, hotel, meals, and other logistical details.
• Foster effective communication and good personal relations between the board of trustees and the ED/CEO.

QUALIFICATIONS The secretary must possess these skills/strengths:

• Understanding of the secretary's unique role and commitment to developing and enhancing it
• Experience in managing and organizing all aspects of the work environment
• Knowledge of the history and mission of the nonprofit organization
• Familiarity with the legal and ethical issues of concern to trustees
• Superior writing, coordinative, and interpersonal skills
• Efficiency, flexibility, and attention to detail

NOMINATING COMMITTEE

SUMMARY OF RESPONSIBILITIES Members of the nominating committee must devote their efforts to ensuring that the board of trustees possesses the optimal mix of skills, experience, and influence needed to meet the board's wide-ranging challenges. Particular responsibilities include:

• Assist the board in determining the desired composition with respect to skills, abilities, experience, diversity, and influence and in making periodic adjustments to meet the changing needs of the organization.
• Develop and cultivate a list of top-notch candidates who possess the desired qualities and are willing and able to serve.
• Design, implement, and oversee a program for orienting, educating, and motivating new trustees.
• Oversee the successful integration of new trustees onto board committees and other activities.
• Assess the effectiveness of individual board members at the end of their terms, and determine their reelection status.
• Identify and acknowledge meritorious contributions to the board on the part of individual trustees.
• Coordinate periodic reviews of the overall performance of the board.
• Nominate the officers of the board, and evaluate their performance on an annual basis.

QUALIFICATIONS Members of the nominating committee must possess these qualifications:

• Track record of strong, effective, and dedicated service on the board
• Access to prominent individuals in the business, financial, and other communities who are prospective recruits
• Clear understanding of the board's role and the importance of its composition to the organization's future
• Excellent planning, networking, and persuasive skills
• Patience, perseverance, and commitment to the task at hand

FINANCE COMMITTEE

SUMMARY OF RESPONSIBILITIES The finance committee is charged with these tasks:

• Undertake a detailed review of all proposed budgets, financial statements and audit reports (unless the latter is done by a separate audit committee), and convey the results to the board.
• Take ownership for achieving and maintaining adequate liquidity and financial health/sustainability of the organization.
• Make recommendations to the board on policy matters and issues related to the financial management function of the nonprofit organization.
• Provide assistance and support to the treasurer/chief financial officer in the development of long-range plans for raising, managing, and safeguarding organizational funds in an optimal manner.

QUALIFICATIONS Members of the finance committee must have these qualifications:

• Clear understanding of the mission, goals, primary financial objective, and respective roles of the finance committee and treasurer/chief financial officer for the nonprofit organization
• Skills and experience in the areas of financial management, communication, and planning
• Integrity, good judgment, and adherence to sound financial principles

VOLUNTEERS

Volunteers are invaluable resources who contribute to the mission of nonprofit organizations in a variety of important ways. They can assist in an optimal manner under these conditions:

• All volunteers are required to participate in an orientation program in order to gain a thorough understanding of the mission, goals, and activities of the nonprofit organization as well as to learn about available involvement opportunities.
• Volunteers are assigned to activities that match their particular experience, talents, and areas of interest.
• Staff members are assigned to oversee specific tasks performed by volunteers as well as to provide guidance and answer any questions that may arise.
• Job descriptions are used to clarify the specific tasks, duties, responsibilities, expectations, chain of command, and other details of the various volunteer positions.
• Background checks are administered where appropriate.
• Liability insurance coverage is held where appropriate.
• Periodic meetings with volunteers are held to solicit feedback on the progress made, problems encountered, and changes needed.
• Close working relations between volunteers and professional staff are fostered to ensure maximum effectiveness and productivity.
• Volunteers are treated with the utmost respect and appreciation, and complete their assigned tasks with thoughtfulness, flexibility, enthusiasm, and dedication.