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Mental Health America

of Hendricks County

Board Development Tips

Mental Health Association in Hendricks County is a non-profit 501c3 agency and most are familiar with the structure of a corporation but not a non-profit. Here are some comparisons:

Corporation/Business Not-for-Profit

What defines success?	Profits	Mission Results
Who owns the organization?	Investors	Community
Who does the Board Represent?	Investors/Owners	Community
Where does the organization get startup funds?	Investors/Sweat Equity/Banks	Donors/Grants/Volunteer Efforts
Where does the organization get operating funds?	Sales Revenues/Bank Loans/Investors	Donations/Foundation Grants/ Fees for Service/Gov Contracts
When revenues exceed expenses, what happens to the surplus?	To owners/Invest in business	Reserves/Expand Programs
Who performs the work of the organization?	Paid Employees	Volunteers/Paid Employees
What is the primary basis for making decisions?	Profitability	Mission
How is accounting organized?	Cost of Goods & Services	Expenses by Funder/Project

excerpt from ‘Welcome to the Board’ by Bryan Orander pg 5

As a Board Member what is expected of me?

Works within its IRS-chartered tax-exempt mission

Protects its assets through appropriate internal controls, educated decisions, investment management, insurance, and other risk management strategies

Is run by a well-qualified Executive -- the board supports, supervises, evaluates, hires, and fires the Executive

Is well-run and has a regular process for organizational planning and the evaluation of success

Meets the basic requirements to operate as a not-for-profit corporation

Individual Board members are expected to:

Prepare for and attend Board and Committee meetings

Support the organization financially and seek support from others

Ask questions when issues are not clear, especially in the financial and risk management areas

Make connections for the organization in the community

Offer their expertise where it can best be used

Represent the organization and its mission in the community

Work as a member of the team, always voicing their ideas and opinions buy then fully supporting the decisions of the group – whether personally in agreement or not

Do I really have to raise money?

Only if you want the organization to be successful and for you to feel a part of an effort that is having a real impact on your local community. It is your obligation to pick an organization you are interested in and to learn enough about its work that you get excited talking about it. You will find that when you share your excitement, other people will want to get involved – as volunteers and financial contributors.

What authority do I have?

Your authority comes as a member of a group (the Board). You exert your influence by working with the Board and establishing visions, plans, and policies to support the mission of your organization. You have the opportunity to bring new ideas to the Board, to propose new partners, to identify potential Board members, new donors, and new programs. You can suggest new planning processes or variations in the mission of the organization. You should also ask questions about any work of the agency and ensure that the Board is kept well informed. You cannot discipline, hire or fire staff, commit the agency to deliver services or purchase products or services, offer the use of organizations facilities, assets, or staff for use by another individual or organization.

excerpt from ‘Welcome to the Board’ by Bryan Orander pgs 6-7