In 2008, the IRS issued important changes to Form 990 that have important Board implications—especially concerning compensation for the School Head. Required for most nonprofit organizations, Form 990 is designed to report annual information concerning financials, programmatic achievements, executive compensation, and governance policies. The form is intimidating—but compliance is mandatory. Every Board member must understand the critical aspects of the form.
The Board's Two Primary Responsibilities
No matter how conscientious and well-intentioned, Trustees (and the Board as a whole) must continually guard against involvement in day-to-day school management. When the Board allows its responsibilities to cross over into the operating plane of the school, it creates a major obstacle to building and maintaining a healthy, harmonious Board/Head relationship.
Regardless of how well a school defines the various roles of the Board, it is imperative that the members understand to whom and to what the Board is truly responsible. The Board’s constituency is not comprised of the current students, parents, faculty, or administrators. Trustees must keep in mind that their charge is to maintain the essential character and integrity of the institution and ensure that it remains viable to serve the children of today’s students.
Parent Association Bylaws
ISM has long recommended that the Board conduct an annual midyear review of the Parent Association’s progress in completing the set of tasks comprising its annual agendas. This article provides a recommended midyear audit list.
The Life Stages of a School
As School Head, understanding your school’s stage in its ongoing maturation can be helpful in providing you with clear insight as to what is—and is not—possible. The stages outlined here are intended to help provide encouragement for schools early in their growth, praise for those that have reached maturity with excellence, and warning for those in peril of old age.
Terms for Board Members and Officers
As Board President or Chair of the Committee on Trustees (COT), you may ask whether or not ISM has evidence that the length of Board terms is an institutional difference-maker. ISM’s answer is no, but the following observations may be useful.
Keeping Former Trustees in the "Loop"
Your Board bylaws should place a limit on the number of consecutive terms that a Trustee may serve. Unfortunately, Trustees who leave the Board often immediately lose touch with their school. As a consequence, some of the most committed and able people may well lose interest and never consider renomination to the Board. Take steps to keep Trustees who are in their “off” years involved—perhaps to serve again in the future.
Your School's Statement of Philosophy
ISM has long recommended that a school’s mission statement be short, memorable, and distinctive—distinguishing the school from its public and private competition. The mission statement should be as much a marketing and public relations tool as a guide to internal decision-making. However, there is one other key, complementary document that helps define your school—a statement of philosophy.
The Roles of the Board Vice President
The demands on a Board President are considerable, and the second-in-command can do much more than stand ready to take the reins in the President’s absence. Other than waiting in the wings to assume the President’s position when absent or disabled, what tasks logically fall into the Vice President’s purview?
Four Critical Ways the Board Supports the Annual Fund
When it comes to the annual fund campaign, it is essential that Trustees not only set a strong example, but that they lead by example. As donors, their participation level must be 100%. They are viewed as “insiders” by your school’s constituent groups—if they don’t provide enthusiastic support, why should anyone else?
The ISM Faculty and Management Compensation Survey, 2012-13: School Head Salaries
The School Head is the sole employee of the Board, and management of the Head’s compensation is a high priority. Numerous entities are now asking how much compensation is too much for nonprofit CEOs. Never has it been more important that the Board be fully conversant about Head compensation. Only then can the Board determine what adjustments are needed to ensure that the school compensates competitively to retain the Head or enhance its ability to be competitive in its next Head search. Trustees must educate themselves about the marketplace and understand the complexities of the School Head’s job.
ISM surveyed a random sample of I&P subscriber schools concerning compensation for faculty and administrators. This article focuses on the survey results regarding the salaries of School Heads at our participating day schools.