by Bob Harris, CAE

The 2006 resolutions focus on ways to enhance governance and management. Seeing the frustrations associated with hurricane devastation, surprise audits and flustered volunteers, each resolution is intended to protect and improve associations, chambers and other nonprofit organizations.

• Sarbanes Oxley - Model for Improved Governance
“My company says I can’t serve on the board unless you comply with Sarbanes Oxley,” said the board member. How do you respond?

Sarbanes Oxley --- the American Competitiveness and Corporate Accountability Act --- applies to for-profit, public companies. Some states are applying provisions to nonprofits. It can be a model for improving governance. Resolve to understand Sarbanes Oxley and to employ provisions for an audit committee, record retention and management affirmation, for example.

• Develop a Board Commitment Form
It is said that the number one lie told to nominees is, “You won’t have to do anything when you get on the board.” If that’s the outlook of new directors, consider a board pledge or commitment form (also a requirement of Sarbanes Oxley.)

Resolve to develop a commitment form for board members. Include requirements from the bylaws and aspects of preparing for and attending meetings, avoiding conflicts of interest, and the importance of confidentiality.

• Identify new Books for Staff
Resolve to make reading and book discussions a part of staff professional development. Budget for buying books each year. Encourage staff to read and hold a monthly luncheon book discussion.

• Protect Intellectual Property
Most associations and chambers create original works that should be protected, along with their logo, name, service and trademarks. An original work may be a certification manual, a compliance guide, a unique map, or a book of best practices, for instance.

Resolve to protect the intellectual property and marks belonging to your organization. Properly transfer original works from the creators (i.e. graphic artist, committee) to the organization. Protect documents with the copyright symbol, use of watermarks and footers, and notice of confidentiality --- and register the marks, phrases and names associated with the organization.

• Protect Software Licenses
The treasurer says, “I’d prefer you use my software to create financial reports.” The staff installs the treasurer’s preferred software without giving thought to the license agreement and consequences. Months later the “software police” drop by your office and find unlicensed software on several computers. The fines can exceed hundreds of thousands of dollars.

Resolve to protect software licenses and limit the installation of unlicensed software.

• Develop a Values Statement
Every board and staff member has values – yet few have discussed and commited them to writing. Stakeholders deserve to know an organization's values or core principles.

Resolve to identify and promote the organization’s core principles in a values statement to supplement the mission statement. Avoid adding values to the mission statement or bylaws --- create a distinct values statement (not to be confused with a member “values proposition.”)

• Endorsing Programs and Services
“I make a motion we endorse the service,” says an eager board member. By a show of hands the motion passes and now your organization appears to be in partnership with a for-profit company. The motion passed without due diligence and research.

Many organizations have “preferred providers” or affinity programs that offer services and generate income. Yet few boards have an understanding of the process or policy for making endorsements. Resolve to identify the best-practices and risks associated with endorsements to recommend a policy to your board.

• Be Prepared for Disaster
Resolve to create an emergency notebook stored offsite. If your office is destroyed --- returning to service will be easier if you have safeguarded critical documents. Staff must know that the “red emergency notebook” on the shelf is to be evacuated with the last person leaving the building.

Keep one copy with your CPA and another at the executive director’s home. Include the IRS Letter of Determination, Articles of Incorporation, Bylaws, Insurance Information, Member Records or Backup, Data Backup, Strategic Plan, IRS Application for Exempt Status, Disaster Communications Plan --- and other items that could take months to reconstruct if they were destroyed.

• Adequate Reserves
Ever hear the board say, “It’s the members’ money and we should not horde it – let’s spend it down!”

Some boards don’t understand the reason for building a reserve. Imagine being in a community hurt by disaster and members declaring, “I’m sorry, we cannot pay dues this year.” Resolve to build a reserve equal to 50 to 100 percent of the annual operating budget so the organization can survive at least six months in case of disaster.

• Promote the Impact of Associations - Chambers
Since the 1700s associations and chambers have been crucial in building communities. Today, more than a million volunteer boards improve standards, provide education and enhance quality of life. While most Americans belong to several organizations, few people understand the collective impact of associations and chambers. Resolve to brag about your organization’s rich history, achievements and goals.

Bob Harris, CAE, promotes efficient nonprofit management and enhanced board training. His website offers free tips and templates at www.nonprofitcenter.com to support many of the 2006 resolutions.