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TO: All Employees DATE: 15 February 1995
FROM: Nancy A. Dube
DEPT: CORP. COMMUNITY RELATIONS
LOC/MS: MSO/L14
SUBJECT: SERVING ON NONPROFIT BOARDS OF DIRECTORS/BOARDS OF TRUSTEES
Corporate Community Relations continues to receive phone calls from
employees requesting information about serving on the boards of
nonprofit organizations. In response to those calls, we have prepared
the following document that will:
o acquaint you with the types of board involvement;
o provide guidelines for your evaluation of the organization
and your role as a board member; and,
o help you manage the expectations of the organization
regarding the availability of personal or company resources.
Should you have any questions, please do not hesitate to call
Corporate Community Relations at DTN 223-9210.
Regards,
Nancy A. Dube
Manager,
Corporate Community Relations
GUIDELINES FOR
SERVING ON A NONPROFIT BOARD
Because of a history of generosity and involvement, Digital employees are
constantly asked to serve on nonprofit boards. You may be one of these
employees. Serving as a member of a Board of Directors/Board of Trustees
for a community-based, nonprofit organization can be a rewarding personal
or professional experience. It provides you with an opportunity to use
your talents and skills in a positive way and it instills a feeling that
you are making a difference in your community.
But, it is important to know that participation at the board level brings
with it significant responsibilities. Board members take on financial
oversight of the organization and assume specific legal obligations. In
many cases members are also expected to contribute to or raise funds for
the organization. Some may find this an exciting challenge, others not.
It is critical for any person interested in board-level work to ask
questions about the required responsibilities, obligations and expectations
of board membership before agreeing to serve.
WHAT YOU SHOULD KNOW ABOUT AN ORGANIZATION BEFORE YOU JOIN A BOARD
Before accepting an offer to serve on a board, ask the following:
o Does the organization have a clearly defined mission, set of
goals and planning process?
o How is it perceived in the community?
o What is its organizational structure?
-- the role of the Board?
-- the role of the staff?
-- Board training and orientation?
-- Board liability insurance?
o What is its financial status? Is it fiscally healthy? Are
appropriate fiscal controls in place? (Ask to see an audited
financial statement.)
o Are its services or programs widely supported? What are the
major sources of support?
o Does it collaborate with other nonprofits or does it operate
independently?
SERVING ON A NONPROFIT BOARD
WHAT YOU SHOULD KNOW (cont.)
The purpose for asking is threefold:
(1) The responses will help you determine whether or not the
organization is well managed.
(2) The questions will alert the board that you are interested in a
viable organization and that they, as a governing body, should be
reviewing and addressing these areas on an ongoing basis.
(3) If any of these are not presently addressed and you decide to
join the board, you will have some background about those areas
in which you may want to involve yourself.
BOARD OPPORTUNITIES
There are two types of board opportunities:
o Personal -- an individual volunteers his/her own time to an
organization based on personal interests.
o Business -- an employee serves on a board to represent the
company. The reasons vary, ranging from representing and
influencing the outcome of particular issues, to gaining access
to business leaders and decision makers for potential sales and
marketing opportunities.
Although you may understand you have agreed to serve strictly as a private
citizen, the nonprofit organization may view you as a way to access
resources from Digital or as a formal connection to the company. To avoid
this, it is essential that you have an understanding of your responsi-
bilities to the organization and manage all expectations prior to agreeing
to serve on the board. Ask for a clear definition of your role on the
board:
o Why was I asked to serve?
o Do I represent myself? The company?
o How was I identified for the board?
o Is there a special expertise that I am expected to bring?
o What strengths is the organization looking for?
o What tasks will I be expected to take on and complete?
o What is the required time commitment?
o Is there a personal financial obligation?
o Who are the other board members?
o What are their affiliations?
SERVING ON A NONPROFIT BOARD
DECIDING TO SERVE ON A BOARD
Personal Involvement
The decision whether or not to join a board is yours. In discussions
with the organization, make your expectations known and, in return,
get a clear definition of what the board expects from your involve-
ment. You must be very clear with the organization that you are
serving as a volunteer on your own time and that there are no
resources available from Digital. Share with them only what you can
personally and realistically offer.
Business Involvement
Before agreeing to serve on a board as a company representative, you
must assess your involvement as a business person against the
expectations of the nonprofit. Consider the following:
o Is there a relationship--past or present--between Digital and the
organization?
o Are there business reasons why you should sit on the board?
-- Who are the other board members--customers, community
leaders, business prospects?
-- Do you have management/company endorsement to represent
Digital on the organization's board?
-- Does the organization have expectations of Digital? If so,
what are they?
-- What resources, if any, can you as Digital's representative
commit to the organization?
This last question on Digital resources is the most important and has
the potential of committing the company to support that it may not be
in a position to fulfill.
Currently, Digital's charitable resources are extremely limited.
All requests for charitable contributions are, by corporate policy,
reviewed, approved and funded by the Corporate Contributions
Committee. The Committee bases its funding decisions against a
focused, strategic plan that balances support between national/-
international initiatives and local community programs. No
individual or site management team may commit corporate resources of
any kind to a charitable organization or program unless it is through
the Corporate Contributions Committee process.
SERVING ON A NONPROFIT BOARD
DECIDING TO SERVE ON A BOARD (cont.)
Business Involvement (cont.)
To avoid any misunderstanding or embarrassment, you must determine
whether Digital resources are a condition of board membership. If
there is that expectation or interest, you must contact the Corporate
Contributions Program office, DTN 223-9210, to determine what
resources, if any, are available. With that information, you can,
as a Digital representative, manage the organization's expectations
prior to accepting any position on the board.
This message was delivered to you utilizing the Readers Choice delivery
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author of the memo.
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