Commitment

The commitment letter.

One issue which frequently arises is that of the non-performing or unreliable Board member. A duly elected Board member cannot easily be removed other than for gross violation of Board policy.

One technique which a number of boards have implemented is to require the new board member to sign a letter of commitment. The purpose of this letter is to set out the expectations of a board member and to recognise that some people are just not cut out to be a board member. The letter provides a vehicle for a graceful exit for those who find that being a board member, at least of this organisation, is not for them. A typical example is as follows:

"Dear Murgatroyd,

On behalf of (the organisation) I am pleased to confirm your appointment to the Board of Directors/Trustees. The Board comprises of xxxx elected directors who in turn can appoint a further two Directors. In making these appointments we give consideration to the overall skill set of the Board as it relates to our strategic goals and seek to fill competency gaps where they exist. This appointment is for an initial term of 12 months effective June 200x.

(The organisation) is a not for profit organisation and we do not currently offer payment to Directors. Travel, accommodation and approved expenses related to Board activity will be met. (The Organisation) Board Members do not operate under the terms of a contract but your acceptance of this letter will be taken as an indication of your understanding and commitment to the scope and expectations of the role as detailed.

In addition I have attached an induction pack which contains further information and background on (the organisation) and Board activities. I am available over the coming weeks if you wish to discuss anything related to (the organisation) or your role as a Director. At this stage our next meeting is scheduled for zzz 200x.

We are entering a very exciting time for (the organisation) in New Zealand and we are looking forward to having you on the team.

Yours Sincerely,

Fred Chair
(The organisation) Board Chair"

My Role:

I acknowledge that my primary role as a board member of (the organisation) is:

• to contribute to defining the organisation’s mission and governing the fulfilment of that mission; and
• to contribute to, and support, the work of the board and to carry out the functions of the office of board member as stated in the Constitution and other governance documents such as the Board Policy Handbook.

My role as a board member will focus on the development of policies that govern the implementation of the organisation’s plans and purposes. This role is separate and distinct from the role of the chief executive officer, who determines the means of implementation.

My Commitment:

I will exercise the duties and responsibility of this office with honesty, integrity, collegiality and care.

My Pledge:

I pledge, to the best of my knowledge and ability, as follows:

• To establish as a high priority my attendance at all meetings of the board.
• To be prepared to discuss the issues and business addressed at scheduled meetings, having read the agenda and all background material relevant to the topics at hand.
• To maintain the confidentiality of what is said or seen at board meetings.
• While recognising that independence of thought builds the Board’s competence, nevertheless, to work with and respect the opinions of my peers who serve on this board.
• To always act for the good of the organisation as a whole.
• To represent the organisation in a positive and supportive manner at all times and in all places.
• To observe meeting procedures and display courteous conduct in all board meetings.
• To refrain from intruding on administrative issues that are the responsibility of management, except to monitor the results and prohibit methods that conflict with board policy.
• To avoid conflicts of interest between my position as a board member and positions held with other organisations or my personal life. If such a conflict does arise, I will declare that conflict before the board and refrain from voting on matters in which I have conflict.
• To support in a positive manner all actions taken by the board even when I am in a minority position on such actions.
• To participate openly and honestly in reviews of board performance and my performance as an individual director.
• To participate in development opportunities that may be provided in order to augment my skills as a director and the efficacy of the board as a whole.

(The Organisation’s) Pledge

In turn, (the organisation) pledges to me that:

• I will be sent, without request, at least quarterly, financial reports and an update of (the organisation’s) activities that is no later than 30 days from the quarter-end, and which allows me to meet the ‘prudent person’ standard.
• Opportunities will be offered to me to discuss with the CEO and the Board Chair, (the organisation’s) mission, vision, values and goals.
• (The organisation) will help me perform my duties by keeping me informed about issues in the sector and by offering me opportunities for professional development as a board member.
• Board members and staff will respond in a straightforward fashion to questions that I feel are necessary to carry out my fiscal, legal and moral responsibilities to (the organisation). Board members and staff will work in good faith with me towards achievement of our goals.

If, for any reason, either I or (the organisation) find we are unable to carry out the above pledges to the best of our abilities, I will first seek leave of the board to work to a different standard and, if this cannot be achieved, I will agree to resign my position as a board member.

Accepted by: Murgatroyd In the presence of: Fred Chair

Occupation:

Address:

Dated: zzzz 200x