Recent Blog Posts

Great Futures 2025 Update From President Clark and COO Orr

The energy and excitement throughout last our 2018 National Conference was a reminder of the vital work we do as a Movement. As we close out the Great Futures Impact Plan and transition to the strategic framework of Great Futures 2025, we are already seeing success.

In 2017, we saw the most significant growth in our mission metrics in 10 years: registered members, teen members and average daily attendance (ADA) increased across the board. Clubs served over 4.3 million young people (with nearly 2 million members), including 15,000 more teens and 25,000 additional members, for a best-ever ADA of 458,000 at 4,362 Clubs and 300 Community Impact Programs. This remarkable work is only possible because of the partnership of you and Boys & Girls Clubs of America.

In 2018, we move from laying the foundation to executing the plan. BGCA is committed to ensuring every Boys & Girls Club organization is positioned for success and Great Futures 2025 aligns with your local plan. Following is an update on several strategic initiatives.

• Safety – Critical safety-related membership standards were introduced to ensure the continued safety of our youth.
• Strengthening Organizations – Variability in performance among local organizations refers to mission metrics and number of organizations seeing growth vs. decline. In 2017:

o ADA: 31% of organizations declined at least 5%; 40% gained
o Teens: 38% declined; 45% gained
o Members: 33% declined; 41% gained

As a Movement, we need to continue to focus on strengthening Boys & Girls Club organizations and using data to aid in identifying gap opportunities, forecasts and projections to ensure youth have the best experience and we maximize our reach. Lorraine and I recognize that quarterly data discussions are a pain point for some.

As I’m sure you can understand, this information is critical to helping us establish projections and identify trends and thus better anticipate the resources that Club organizations will need. We don’t want this to be a significant burden but a tool to assist you. Therefore, we are committed to identifying a more streamlined process that will alleviate the amount of time spent on this process. We will also do a better job of explaining the purpose for the information requested and engage in a meaningful dialogue around your data vs. a transactional exchange of information.

With that said, we are working to begin using an online reporting mechanism with some Clubs this year. This process will be eliminated with the introduction and subsequent scale of MyClubHub, the new common Club management system that will make tracking and reporting on your key performance metrics easier and more automated. We are currently in the design phase of this project with our software vendor, iMIS, and in partnership with Club professionals across the Movement. We will begin validating system functionality with users later this year.

• Training and Professional Development – Over 15,000 learning experiences were provided to board members in 2017, while local CEOs and senior leaders continued to learn through partnerships with Harvard Business School, Stanford University and BGCA Exchanges. Programs such as Club Directors Academy, Youth Development Institutes and teen accelerators delivered nearly 10,000 learning experiences to frontline staff on management practices to drive the best possible experiences for Club members. Knowing how important learning opportunities are but often difficult to prioritize within a limited budget, BGCA provided training and learning scholarships in excess of $11 million.
• Local Funding – As you know, one of the Great Futures Impact Plan goals was to increase Movement-wide revenue by 30 percent, with a focus on doubling individual giving through the Advancing Philanthropy program—and we achieved that, reaching $2 billion in Movement-wide revenue in 2017. Over 500 organizations participated in AP over the last five years, with $330 million raised in major gifts, and individual giving estimated to double from $123 million at the program launch to more than $250 million annually by June 2018. This work also influenced our integrated direct marketing and alumni initiatives at the national level, creating a pipeline of individual donors and prospects. In addition, private and government pass-through to Clubs is at an all-time high of $185 million, including state alliances.
• Innovative Operating Models – To help local organizations impact more youth, 83 mergers, shared services or management agreements involving 160 local organizations were signed last year, with 17% of traditional organizations part of some form of innovative operating model. We understand there is some confusion around this strategy. Moving forward, we will share research and analytics used in local board conversations that support mission advancement and significant growth in mission metrics and Club revenue.

As we prepare for the summer season, we will continue to scale and share our successes (such as Club Directors Academy, ongoing Child and Club Safety enhancements, workforce readiness, Program Basics, Models and Playbooks, focus on opioid use prevention). As we progress, we will do so with a focus to do what is right for you, your Club, and the youth you serve.

As BGCA evolves to meet your needs, we hear you loud and clear that Directors of Organizational Development (DOD) offer local Clubs a critical connection to the national office. We recognize we must clarify how DODs can provide you, your staff and board with even more value. With this in mind, Mercer Consulting just completed a DOD job analysis and is exploring how BGCA and DODs can provide you with even better service and support. More information, including how to minimize shifts in primary DODs for each organization, will be forthcoming shortly.

There’s much to be proud of in our direction and successes, and we believe we can do even more good for the young people of our country. Thank you for your dedication to provide Great Futures to all our youth.

Sincerely,

Jim Clark
President and CEO
Boys & Girls Clubs of America

and

Lorraine Orr
Chief Operations Officer
Boys & Girls Clubs of America

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Intent to Lead

Comparative data always helps us benchmark our organization’s effectiveness. I’m attaching a tool, “Leading with Intent: A National Index of Nonprofit Board Practices” includes two surveys pertaining to board practices – one for chief executives which contains 81 questions and one for board chairs which contains 30 questions.

BoardSource sent the CEO survey to 4,544 members identified in the BoardSource database by title of chief executive or something comparable and to 22,418 clients identified by title of chief executive or equivalent who recently used their services or visited the website. All surveys were completed between May 20, 2014 to July 14, 2014, and measured board practices that were current at the time of the survey.

The CEO version of the survey was completed by 846 chief executives who were asked to provide contact information for their board chair. Contact information for board chairs was provided by 664 chief executives and 246 board chairs completed the board chair survey.

BoardSource retains rights to this survey and data. If you are interested in conducting a similar survey which can be customized for your federated or affiliated organization, please contact BoardSource.

You are welcome to use this data in presentations and articles. Please include this citation for any data used:

BoardSource, Leading with Intent: A National Index of Nonprofit Board Practices (Washington, D.C., BoardSource, 2015)

Please click here to see data.

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Board of Directors Survey of Non-Profit Organizations

A 2015 Survey on Board of Directors of Non-Profit Organizations recently published in the September 2015 Harvard Business Review provided an interesting overview of non-profit Boards of Directors. I added a section at the conclusion of the article outlining a few of our BGCA responses to the gaps identified in the study through.

Too Many Directors Lack a Deep Understanding of the Organization

Over a quarter (27 percent) of nonprofit directors do not believe that their fellow board members have a strong understanding of the mission and strategy of their organization. A third (32 percent) are not satisfied with the board’s ability to evaluate the performance of the organization.
While almost all (92 percent) say that their board reviews data and information to evaluate organizational performance, many are not comfortable with the quality of that data. Forty-six percent of directors have little to no confidence that the data they review fully and accurately measures the success of their organization in achieving its mission. Over half (57 percent) of nonprofit boards do not benchmark their performance against a peer group of similar organizations. “Rigorous performance measurement is the bedrock of good governance,” says Meehan. “How can the board claim to understand whether its initiatives are successful unless it is measuring their impact? Start with a mission-focused theory of change. Outline a logic model that shows a clear connection between your initiative and the desired outcome. And then rigorously measure performance.”

Most Lack Formal Governance Structure and Processes

Nonprofit boards stand to gain from the adoption of sound governance practices in areas such as financial reporting and audit, succession planning, and CEO and board evaluations. A significant minority (42 percent) do not have an audit committee. Many rely on monthly bank statements to monitor financial performance.
Two thirds (69 percent) do not have a succession plan in place for the current executive director or CEO. Three quarters (78 percent) could not immediately name a successor if the current executive director or CEO were to leave the organization tomorrow. On average, nonprofit directors estimate that it would take 90 days to find a permanent replacement.
Most (80 percent) claim to formally evaluate the performance of the executive director. However, a significant number (39 percent) do not establish explicit performance targets against which his or her performance is measured.
Over a third (36 percent) of nonprofit boards never evaluate their own performance.

Many Directors Are Not Engaged, Do Not Understand Their Obligations

Two-thirds (65 percent) do not believe that the directors on their board are very experienced, based on the number of additional boards they serve on. Almost half (48 percent) do not believe that their fellow board members are very engaged in their work, based on the time they dedicate to their organization and their reliability in fulfilling their obligations.
About half (47 percent) of nonprofit directors believe that their fellow board members understand their obligations as directors well or very well.

Fundraising Is Seen as a Central Obligation

Nonprofit directors rank fundraising very high relative to their other obligations as directors. Forty-five percent of nonprofits require directors to fundraise on behalf of the organization. Among those that do, 90 percent of directors believe that fundraising is as important or more important than their other obligations as directors.
While many nonprofit organizations (46 percent) do not require directors to donate each year, almost all directors (92 percent) personally do so.
Less than half (42 percent) of nonprofits have a “give or get” policy that requires each board member to donate a minimum amount each year or raise that amount from others. The minimum “give or get” varies by size of the organization, and averages $1,000 for small nonprofits (operating budget less than or equal to $500,000) and $5,000 for large nonprofits (operating budget greater than or equal to $5 million).
“Fundraising is an important obligation for many directors,” observes Donatiello. “However, it should not distract from other core duties, such as ensuring that the organization is well managed, the strategy sound, finances healthy, and contingency plans in place to deal with unexpected disruptions.”

Most Directors Are Satisfied with the Performance of Their Executive Director/CEO

Almost all directors (92 percent) believe that the executive director understands the mission and strategy of the organization very or extremely well. Eighty-seven percent are satisfied with his or her performance. Few believe that their executive director is overcompensated, with 51 percent stating that their executive director is appropriately paid and 42 percent stating that he or she is slightly or very underpaid.
Executive directors primarily have previous work experience in the nonprofit sector. Over half (59 percent) worked in the nonprofit industry immediately prior to becoming the head of their organization. Only 14 percent had immediate prior work experience in a for-profit organization. Twelve percent are the founder of their organization. In terms of education, almost two thirds (60 percent) have a master’s degree or higher.

… and with the Performance of Their Board and Organization

A significant majority (85 percent) of nonprofit directors are moderately or very satisfied with the performance of their organization. Satisfaction levels are also high for the quality of financial reporting (82 percent) and financial health (70 percent) of the organization.
Most directors believe their board is correctly sized (56 percent) or only slightly too large (12 percent) or slightly too small (24 percent). These results hold true across organizations of various size.
Approximately half (52 percent) say that their organization has a “board within a board” where a subset of directors has an outsized influence on board decisions. Two thirds of these (67 percent) are a formal executive committee, while one third (33 percent) reflect an informal dynamic that evolved over time. Among those organizations with a “board within a board,” 74 percent say it improves board functionality and decision making.
A quarter (28 percent) of directors report that the founder of the organization currently serves as a fellow board member. Of these, 68 percent say that the founder is very involved in management and 78 percent say the founder is very involved as a board member of the organization. The vast majority (90 percent) believe that the founder has a positive or very positive impact on the success of the organization.

Still, Most Nonprofit Boards Have Serious Challenges

Over two thirds (69 percent) of nonprofit directors say their organization has faced one or more serious governance-related problems in the past 10 years. Forty percent say they have been unable to meet fundraising targets. Twenty-nine percent have experienced serious financial difficulty. A quarter (23 percent) have asked their executive director to leave or had to respond to an unexpected resignation. Sixteen percent say they have had extreme difficulty attracting qualified new board members.
“The value of good governance shows up in results,” says Professor Larcker. “Ultimately, nonprofits will want to implement more reliable processes and procedures to ensure their organizations succeed. Good governance will almost certainly help nonprofit directors maximize their contribution to their social mission.”


What do you think? How can we be better stewards of the board engagement and education process? Strong Boards-Strong Organizations.

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World’s 100 Most Powerful People: Strategic Point-of-View for the Non-Profit Business Model

World class boards of directors don’t just happen. They grow from leaders who take care, thought and planning to build a strong group of the right leaders. Board development is a long-term, ongoing process and outside the employment of a talented CEO is the most significant aspect of a quality non-profit organization.

With the recent announcement of the Forbes World’s 100 Most Powerful People , my human services emotional intelligence radar reminded me that Building the High Performance Board Team for a non-profit often times results in the act of settling for less than the best community leaders as engaged stakeholders on their local boards.

Don’t settle, aim for the best leaders possible. Develop your own Community’s 100 Most Powerful People using the four benchmark criteria used by Forbes with some modification. Forbes used the following four factors:

Power over lots of people
Financial resources controlled
Powerful in multiple spheres
Actively use their power

All non-profit organizations should pay attention to its board composition and profile. Organizations must deploy a process which assesses current and anticipated needs of organizations strategic trajectory with the knowledge, attributes, skills, and abilities of a potential board leader. Additionally, use a modified Forbes’s four factors toward your board building process. Identify community leaders who possess:

Influence with community stakeholders at the highest level
Affluence, the ability to invest resources
Able to secure financial resources from diverse streams
Demonstrated service to those who are in greatest need

If you apply the Forbes’s formula to your board building model, prepare for transformational leadership at the board level and CEO level. High performing community leaders do not settle for mediocrity nor will they serve effectively with mid-level, unproductive community leaders.

Prepare for the integration of successful leaders who by nature will bring “inquiry, vision and creative tension” into the boardroom. If there is not a readiness plan for the infusion of high impact, leadership, the effect can and will be disruptive.

Are you ready to rock n’ roll? Prepare your board transformation plan by engaging world class board leaders who are affluent and influential as your tipping point for organizational success and growth.

Ronnie Jenkins, National Director
Board Transformation Services
Boys & Girls Clubs of America

 

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Create your own user feedback survey

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Should Volunteer Board Members Undergo Background Checks?

While board members may not have direct repetitive contact with Club members, they are the representatives of the organization.  As our local and national organizations assess the impact of potential media exposure and discovery that a board member has a criminal record, in particular one that might suggest potential harm to a child. Continue reading »

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