Risky Business Dont Be One

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• Engaging Board Members in Sharpening Your Boards
  Focus
• North Central Association of RCD Councils
• Dubuque, Iowa
• April 4, 2005
• Lindy Turner, Clinch-Powell RCD Coordinator

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Who are you?
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• What is impossible to do today, but if done,
  could fundamentally change the way you do
  business?

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Review

• RCD Councils have at least three important
  designations
• Formal nonprofit (legal)
• Tax exemption (legal)
• Authorization as RCD (regulatory, not legal)

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Is This Your RCD?

• Mission focused
• A place at the table
• Results oriented
• Accountable
• Risk takers

• Passionate
• Visionary
• Dynamic
• Diverse
• Entrepreneurial

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Or Is This Your RCD?

• Dependent on NRCS and others
• Governing body not powerful enough
• Poor Attendance
• Little passion

• No sense of urgency
• Lacking vision
• Little energy
• Lack of diversity
• Another required meeting

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Are you addicted to

• A few groups?

Tin cupping?
WIIFM?
it may be time to make some changes!
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Thinking Differently

• Your RCD nonprofit organization is a business!
• Nonprofit does NOT mean broke!!!!
• The board is accountable for the fiduciary
  responsibilities of the organization.
• The board has a temporary gift.
• The board cannot afford deadwood.

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Own YOUR Company!!!!
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Thinking Differently About the Organizational
Structure

• Governing Body
• Recruitment
• Size

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Take an Honest Assessment

• Are you worth 130,000?
• Do you have a board of clones?
• Are you relevant?
• Are you for real?
• Are you in control?

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CULL the Herd!!!!
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Roles of Governing Body

• Support
• Builders, Cheerleaders, Conduit to Community
• Governance
• Questioners, Monitors, Hold Accountable

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Boards Responsibilities

• Trustees
• Establish and fulfill mission
• Legal accountability
• Strategic planning
• Evaluating success
• Directs Coordinator through AP and POW
• Ensures financial solvency
• Policies and procedures HR and operational

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Planned Ends
Vision, Mission, Strategic Planning/Thinking,
Futuring, Positioning, POW, Financial
Goals/Budgeting, Staffing
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Actual Ends
Planned Means
Organizational Assessments and Evaluation,
Program Reviews, Risk Reviews, Budget Monitoring,
Audits
Project Plans, Project Budgets, Program
development, Fundraising Plans, Policies,
Procedures
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Project Implementation, Activities, Project
Monitoring and Evaluation, Project Budgets,
Fundraising events
Actual Means
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Board Diversity and Recruitment

• Because board member selection is one of the
  most important decisions the Board makes,
  recruitment should be a thoughtful strategy which
  considers skills, interests, backgrounds,
  personal characteristics, and perspectives needed
  by the board.

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• What is impossible to do today, but if done,
  could fundamentally change the way you do
  business?

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Economic Development
Accounting
Agriculture
Fundraising
Legislative
Elected Official
Insurance
Retired
Legal
Education
x
Smith
Jones
x
x
x
x
Barker
Lawson
x
x
x
Martin
Hawkins
x
Walker
x
Hall
x
Rhea
x
x
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Passion in Your Work?
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Housing
Education
Emerg. Svcs
Tourism
Small Biz
Better Jobs
Leadership
Ag
Training
Envionment
x
x
Camp Crk BMP
Holston WS
x
x
x
Shiloh Grazing
Renfro WQ Monitoring
x
x
Joppa Nature Trail
x
X
EQUIP Outreach
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• What is impossible to do today, but if done,
  could fundamentally change the way you do
  business?

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Begin with Ownership

• Own your Board
• Own your space
• Own your equipment
• Own your staff
• Own your programming
• Own your financing

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Set Financial Goals

• Cash Flow Minimum two months
• Cash Reserves Minimum three months
• Investments Real estate, venture, etc.
• Endowment Permanent to fund organization

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• You should have a minimum of six months of liquid
  assets (cash on hand, line of credit, etc.)
• Dont worry until you have more than three years
  of cash needs.

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How will you get there?

• Grants
• Service income
• Contributions
• Proceeds
• Sales
• Investments
• Interest
• Endowment
• Subsidiaries

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A word about accountability

• Board of Directors is responsible.
• Be transparent.
• Be brave or be resigning.
• Be protected.
• Be informed.

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Areas of Risk?

• Finances
• Operations (including personnel)
• Tax Exempt Status
• Public Trust

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Keep 3 Questions in Mind

• What can go wrong?
• What will we do (to prevent or in the aftermath)?
• If something happens, how will we pay for it?

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And Finally...

• Get rid of the box
• Dream outrageously
• Take calculated risks
• Dont sweat the small stuff
• Be courageous
• Be in business
• Be the best!

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Lindy TurnerClinch-Powell RCDPh
865/828-5927email lindy_at_clinchpowell.orgwww.cl
inchpowell.net