Best of Boards, 2nd Edition

Table of contents

1. Notice to Readers
2. About the Authors
3. Preface
4. Acknowledgments
5. Chapter 1 Increased Complexity and Mounting Challenges: Time to Prepare
   1. Call to Action
   2. Conclusion
6. Chapter 2 Roles of the Board and Management
   1. Governance in the 21st Century
   2. Purpose of the Governing Board
   3. Board Committees
   4. Legal Responsibilities of the Board
      1. Lesson Learned
      2. Lesson Learned
      3. Lesson Learned
   5. IRS Form 990 and Governance
   6. Frameworks for Good Governance
   7. Panel on the Nonprofit Sector Framework—Good Governance Model
      1. Legal Compliance and Public Disclosure
      2. Effective Governance
   8. Conclusion
   9. Appendix A—Comparison of Key Objectives of the Board of Directors With the Good Governance Framework and Questions From IRS Form 990
   10. Appendix B—Example Dashboard for Board Evaluation
   11. Appendix C—Sample Board Self-Assessment Document
7. Chapter 3 Legal and Ethical Imperatives for Leadership
   1. Legal Accountability
   2. Ethical Accountability
   3. Who is Accountable for Accountability?
   4. How to Instill Ethical and Legal Accountability
      1. Honest Communications
      2. Strong Relationships
      3. Internal Controls
      4. Clear Expectations
      5. Skilled Boards
      6. Involved and Informed Boards
      7. Financial, Document, and Ethics Audits
      8. Compliance Officers
   5. Resolving Dilemmas
   6. What About WholeHealth?
   7. Conclusion
8. Chapter 4 When Management and the Governing Board Disagree
   1. The Head Game
   2. Communication
   3. Constructive Norms
   4. Negotiation
   5. Assisted Resolution
   6. Conclusion
9. Chapter 5 Understanding the Financial Statements of Nonprofit Organizations
   1. Characteristics of Nonprofits
   2. Responsibility for Financial Information
      1. Basis of Presentation for Financial Information
   3. Cash Basis of Accounting Versus Accrual Basis
   4. Basic Financial Statements
      1. Footnotes to the Financial Statements
   5. Fund Accounting
   6. Assets
      1. Liquidity
      2. Cash and Cash Equivalents
   7. Revenue, Receivables, and Deferred Revenue
   8. In-Kind Contributions
   9. Long Term Contributions
   10. Conditional Promises to Give
   11. Endowments
   12. Split Interest Agreements
   13. Agency Transactions
       1. Nonprofit Serves as a Conduit for Cash or Noncash Donations
       2. Nonprofit Solicits Funds for Another Nonprofit Organization (Unrelated)
       3. Nonprofit Holds Funds for Another Nonprofit Organization (Unrelated)
       4. Nonprofit Enters Into Transactions With Related Foundations
   14. Inventories
   15. Prepaid Expenses and Investments
       1. Alternative Investments
   16. Property and Equipment
   17. Liabilities
       1. Accounts Payable and Accrued Expenses
       2. Mortgages and Notes Payable
       3. Net Assets
       4. Revenues and Expenses
       5. Conclusion
10. Chapter 6 Risk Management
    1. Some Risks Can Be Mitigated With Insurance
    2. Cyber Risk—A Growing Threat
    3. Risk in a Complex World
    4. A Nonprofit’s Most Important Resource
    5. Risk Management Approach
    6. Enterprise Risk Management
       1. ERM Component One
       2. ERM Component Two
       3. ERM Component Three
       4. ERM Component Four
       5. ERM Component Five
       6. ERM Component Six
       7. ERM Component Seven
    7. Example Application of a Risk Management System to a Nonprofit Organization
    8. ERM in Smaller Nonprofit Organizations
    9. Risk Management Committee
    10. Crisis Management
    11. Revisiting Uncertainty
    12. Conclusion
    13. Appendix A—Risk Management Checklist
11. Chapter 7 Internal Controls: What Every Executive and Board Member Needs to Know
    1. Characteristics of Nonprofits
    2. Internal Control Defined
    3. COSO Framework Updated for Changing Times
    4. Distinguishing Error From Fraud
    5. Controls for Smaller Organizations
    6. Elements of Internal Control
       1. Control Activities
    7. Designing a System of Internal Control
       1. Entity Controls
       2. Control Activities
    8. Antifraud Programs and Controls
       1. Misappropriation of Assets
       2. Fraudulent Financial Reporting
    9. Revenue Recognition and Management Override
       1. Control Environment
       2. Fraud Risk Assessment
       3. Information and Communication
    10. Monitoring
    11. Billing Schemes, Check Tampering, and Expense Fraud
    12. Use of Analytical Techniques to Identify Unusual Disbursement Transactions for Investigation
    13. Skimming and Larceny
    14. Payroll Fraud
    15. Controls Over Noncash Items
    16. When Processing Is Outsourced
    17. Cybersecurity and Not-for-Profits
    18. Internal Controls Evolve
    19. Conclusion
    20. Appendix A—2013 COSO Framework 17 Principles—Summary
12. Chapter 8 Focus on Tax-Exempt Status
    1. Nonprofit Organizations and Tax-Exempt Status
    2. IRS Filings
    3. Differences Between Nonprofit and Commercial Organizations
    4. Recognition of Tax-Exempt Status
    5. Lobbying
    6. Public Charity or Private Foundation
    7. Public Support Test for Charitable Organizations
       1. Test 1 (509(a)(1))—Compute the Public Support Percentage
       2. Test 2 (509(a)(2))—Compute the Public Support Percentage
    8. Supporting Organizations
    9. Charitable Contributions
    10. Filing Form 990
    11. Unrelated Business Income
    12. IRS Audits
    13. Conclusion
    14. Appendix A—Guide for the Board’s Review of Form 990
    15. Appendix B—Important Filings for Tax-Exempt Organizations
    16. Appendix C—Governance Policies and Procedures
13. Chapter 9 The Courage to Lead
    1. Moral Courage
    2. Barriers to Ethical Action
    3. Strategies for Ethical Action
       1. Have a Clear Compass
       2. Know Your Objective
       3. Seek Advisers and Allies
       4. Walk the Walk
       5. Understand Change Strategies
       6. Practice Considerate Communication
    4. Conclusion
14. Chapter 10 Change Management
    1. Understanding Change
    2. Be Clear About What You Want
    3. Assess Before You Act
    4. Create Awareness and Urgency
    5. Create a Powerful Coalition
    6. Communicate
    7. Address Obstacles and Blockers
    8. Create Short Term Wins
    9. Give People the Tools to Succeed
    10. Solidify Changes
    11. Suggestions for Sonja
        1. Be Clear About What You Want
        2. Assess Before You Act
        3. Create Awareness and Urgency
        4. Create a Powerful Coalition
        5. Address Obstacles
        6. Communicate
        7. Create Short Term Wins
        8. Give People the Tools to Succeed
        9. Solidify Changes
    12. Conclusion
15. Chapter 11 Integration for Action
    1. Case One: A Woman Scorned
       1. Prevent
       2. Address
       3. Improve
    2. Case Two: The Indeterminate Sentence
       1. Prevent
       2. Address
       3. Improve
    3. Case Three: Your Turn
    4. Sustained Success
    5. Conclusion
16. Glossary
17. Bibliography
18. Suggested Reading
19. EULA