How to Start a Non-Profit Organization: Step 2 – Founding Board Membership

Now that your brain trust has evaluated the idea and has endorsed the concept, it is time to go onto step 2 of the process. You will need to create a founding board to start the non-profit organization. The members of the brain trust provided you with names of potential board members. 

To start and run a non-profit organization you will need to create a source system and profiles of the board members.

Hopefully you have a list of around 12 to 15 folks to begin the process. If you don’t have that many folks to start out with, then keep searching for more potential board members. You need a least a dozen members to have any real chance of success. Look at the following sources to find potential board members:

  • Local Churches – If the congregation size or membership is slim at your church, look at others in the area. Talk to the priest/minister/reverend about your idea. He is well aware of his flock and will provide you with plenty of names.
  • Competition – Are there other similar organizations doing something along the lines of what you desire? If so, communicate with the Executive Director for that charity and see if (s)he can help you with potential board members. They have a personal understanding of their board members and these folks talk about their passions. You never know, you might find a great board member from another organization. It has double value, they also bring experience.
  • Social Clubs – many of the social clubs or support organizations are dedicated to a certain group in society. Kiwanis supports children’s organizations, Rotary supports many different organizations. Make contact with some members and they’ll give you an opportunity to present to their club. In your presentation ask for board members and keep it simple. Many folks have time issues and you are looking for guidance and not some overwhelming participation requirement from them.
  • Government Boards – Look into the local government’s many different community boards. Go to those boards and meet the citizen members. These folks have passion for participation, excellent sources of highly active folks. It is surprising how the board they sit on as a citizen will often align itself with your idea.
  • Community Organizations – Look at the opportunities to find resources here:
    • Moose Lodges
    • Veteran Posts
    • Women’s Exchange Clubs (Social Club)
    • Knights of Columbus
    • Masons
    • Band/Athletic Boosters

Sit down and create a chart of the organizations in your area. Try to identify all of them. This will be one of your most valuable documents, as you’ll soon discover board recruitment is essential. Board members are the heart of what you’ll do. They’ll provide the volunteers, financial resources, and the community contacts to make your idea go. I have sat on several different boards and I soon realized the value that they bring to the mission. Without them, you’ll have little chance of success. Create a chart with master groups similar to what I have above. Then start to break the groupings down into the sources of potential board members.

I can’t stress enough the importance of having a dozen members to start out with when you first meet. There will be a lot of tasks and input needed to make this idea go. In addition, they provide the energy and financial resources you’ll need to make this work. A typical participation rate is about 2/3. This means out of the 12 initial members, about 9 will actually participate and provide feedback to you on a regular schedule. Three members will bow out almost immediately or within a couple of meetings. Furthermore, you need the information above to keep searching for more board members. As some depart or lose interest, you’ll need others to replace them. Recruiting is a regular and persistence function of your duty, it pays off. You’ll discover that board recruitment will consume about 20% of your time in the first year alone.

Create a board member profile. You’ll need a mix of different types of personalities and backgrounds to have a successful board. The following are the different types of members you’ll need:

  • The volunteer type – this board member wants to get involved in the organization, she’ll be the one to bring the food to the meetings, celebrate occasions etc. The ideal candidate is someone recently retired or a stay at home mom. The key is that they have flexibility with their schedule to help you out.
  • Business contact member(s) – these individuals have financial contacts in the community, you’ll need a least a half dozen members with deep resources. The best fitting jobs are brokers, bankers, and contractors.  They will have access to the pockets of others.
  • Financial member – ultimately the one with the duty of treasurer. The absolute best candidate is an accountant.
  • Legal – find an attorney or someone who works in a law office as a board member. You’ll need access to low cost or highly discounted legal advice as the organization is formed and gets involved in the initial contracts.
  • Volunteer recruiters – these types of board members know how to find and recruit volunteers for your idea. They have contacts with schools, large volunteer organizations such as Boy/Girl Scouts, Church Youth Groups, etc.  Remember, you’ll need energy to either carry out the function or raise money for the mission.
  •  The Club – this member is not a high end doer, but a socializer. He or she is involved in many clubs or organizations because they enjoy socializing. Their purpose on your board is to get you into those clubs for access to resources. Think of this individual as the doorman. He/She will let you in the front door to gain access to money/volunteers/new board members.

You need all these types of personalities on your board to have a chance at true success. If you did the first step above in identifying resources, this part will be easy. All you need to do is get more board members and you’ll have these personality traits on your board in no time.

Now, it is time to get them together. In my next post about Non-Profit Organizations, I’ll explain how you gather them together, convey your idea and begin the process of forming a non-profit organization. Act on Knowledge.

Value Investing

Do you want to learn how to get returns like this?

Then learn about Value Investing. Value investing in the simplest of terms means to buy low and sell high. Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

There are four key principles used with value investing. Each is required. They are:

  1. Risk Reduction – Buy only high quality stocks;
  2. Intrinsic Value – The underlying assets and operations are of good quality and performance;
  3. Financial Analysis – Use core financial information, business ratios and key performance indicators to create a high level of confidence that recovery is just a matter of time;
  4. Patience – Allow time to work for the investor.

If you are interested in learning more, go to the Membership Program page under Value Investing section in the header above. 

Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each member goes through three distinct phases:

  1. Education – Introduction to value investing along with terminology used are explained. Key principles of value investing are covered via a series of lessons and tutorials.
  2. Development – Members are taught how pools of investments are developed by first learning about financial metrics and how to read financial statements. The member then uses existing models to grasp the core understanding of developing buy/sell triggers for high quality stocks.
  3. Sophistication – Most members reach this phase of understanding after about six months. Many members create their own pools of investments and share with others their knowledge. Members are introduced to more sophisticated types of investments and how to use them to reduce risk and improve, via leverage, overall returns for their value investment pools.

Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:

  • Lessons about value investing and the principles involved;
  • Free webinars from the author following up the lessons;
  • Charts, graphs, tutorials, templates and resources to use when you create your own pool;
  • Access to existing pools and their respective data models along with buy/sell triggers;
  • Follow along with the investment fund and its weekly updates;
  • White papers addressing financial principles and proper interpretation methods; AND
  • Some simple good advice.

Value Investment Club

Please Signup
*
Username
Username can not be left blank.
Please enter valid data.
This username is already registered, please choose another one.
This username is invalid. Please enter a valid username.
*
First Name
First Name can not be left blank.
Please enter valid data.
This first name is invalid. Please enter a valid first name.
*
Last Name
Last Name can not be left blank.
Please enter valid data.
This last name is invalid. Please enter a valid last name.
Website (URL)
Website (URL) can not be left blank.
Invalid URL
Invalid URL
*
Email Address
Email Address can not be left blank.
Please enter valid email address.
Please enter valid email address.
This email is already registered, please choose another one.
*
Password
Password can not be left blank.
Please enter valid data.
Please enter at least 6 characters.
    Strength: Very Weak
    Select Your Payment Gateway
    How you want to pay?
    Payment Summary

    Your currently selected plan : , Plan Amount :
    , Final Payable Amount:
    Submit