Credit Proofing Charity Assets Part III
Recruitment of Directors
By Mark S. Anshan

In the last part of this series, we discussed the independence and authority of the separate corporations and balancing that fundamental principle with the “control” by the parent corporation.

The ability to maintain independence and ensure that the corporations within the “family” are working as designed is dependent on the skills and commitment of the directors of the parent charity/non profit corporation and the subsidiaries. A well designed director recruitment and training program is recommended. The program would establish the skill sets required for a particular board of directors aligned with the objects of the charity. A methodology would be implemented for recruiting directors and this could include using the services of a firm specializing in director recruitment. Alternatively, a comprehensive networking plan could be developed that would include the steps required to identify board candidates, contact them and determine if they are interested and qualified to serve on the Board. This process requires a commitment of time by the charity’s professional and lay leadership and should be viewed as a critical component of establishing an effective organization that will meet the charity’s goals.

Once a group of directors or new directors are recruited and elected, the second important task is training and orientation. The important elements of this aspect of director recruitment are to provide the information and tools required by the directors so that they understand and can fulfill their fiduciary and legal obligations to the charity. This entails a full review of the goals, programs and projects of the charity, review and discussion of the legal obligations of a director and reviewing the charity’s strategy and the role of the directors in its implementation.

With charities that have subsidiaries, holding joint information/orientation meetings of the directors can be a useful way to ensure that the goals of the entire family are understood and plans are effectively coordinated.

If you would like more information on this topic and assistance in designing and implementing a board recruitment plan, please contact our Counsel, Mark S. Anshan at manshan@drache.com or 613-237-3300 ext 15.