Directing a non-profit

The board of directors has a lot of power over the well-being of a non-profit condominium corporation. The directors also have a lot of responsibility. After all they—not the hired property management company—are responsible for the operation and financial well-being of the corporation. The management team are only hired contractors.

The board needs directors who are willing to learn. That is most important.

They must also have the ability to work with people they may not like too much but must still be able to accept their good ideas and use their strengths.

The directors must also be able to admit their mistakes so they will not repeat them and be tough enough to deal with the difficult owners, residents, employees and contractors that will be constantly with us.

Duties

The board's responsibilities include:
1.
Reviewing management's decisions and counsel, advise and deliberate with the management company. The board decides if the corporation's business plan is being followed and if the proper objectives have been set.
2.
Decide on a realistic annual budget that balances the need to maintain the property, pay the bills and set the monthly fee increases at a level the majority of owners will and can support.
3.
Enforcing all the provisions of the Act, declaration, by-laws and the rules in a fair and consistent manner.
4.
Listening to the residents and the owners.
5.
Removing all professionals and contractors who fail to perform.

The board should:
1.
Adopt Nathan's Meeting Rules and follow them.
All directors should read and understand the most important rules.
2.
Always be civil.
3.
Disagreements are healthy. In fact, it is a sign of a poor board if they normally agree on everything. That is when serious mistakes are made.
4.
Work with people's strengths.
5.
Everyone has tasks to perform. No free-loaders.
6.
If not committed, a director should be expected to resign.
7.
Remove any officer who thinks they are indispensable or will not share information. These people are dangerous.
8.
Late fees will not be tolerated. Lien everyone who is late before the 90 days is up. No exceptions.
9.
Understand the Inside Management Rule and follow it. A board has to replace a president or a manager who acts on their own.
10.
The board has control of the corporation's bank accounts, not the property management company. All receivables are deposited in the corporation's accounts, not the property management's account then transferred over later.
11.
The president must be able to build a good performing team. That is his or her most important function.
12.
Ethics is everything. No lies or half-truths. If you are playing politics, come out and say so.
13.
Last-minute rushes by the manager must not be tolerated. A manager who has a habit of needing cheques or contracts signed immediately, without the signing officers being given sufficient time to examine the invoices or paperwork, should be sacked.
14.
All bills will be paid in full and on time. No discounts for early payment will be missed. Contractors perform better for clients who regularly pay their bills on time.
15.
Being on the board is a learning experience. All directors should be encouraged to improve their knowledge and improve their skills.

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