An Administrator's Guide to California Private School Law

Chapter 2 - Governance

a. The “Core” Standing Committees The Committees most frequently included in Bylaws are an Executive Committee, a Finance Committee, a “Nominating Committee” (also sometimes known as the Committee on Trustees), and a Development Committee. i. Executive Committee The Executive Committee typically coordinates the work of the Board. However, the Executive Committee should not be viewed as a “super-board” tasked with making policy and usurping the Board’s role. Thus, the language in the Bylaws should reflect the Executive Committee’s ultimate role as manager of the Board but not the school in its entirety. ii. Finance Committee The Finance Committee, also sometimes known as the “Asset Oversight” or “Resources Committee,” is responsible for overseeing and managing a school’s physical assets, not just its finances and investments. It is recommended that the Bylaws explicitly recognize this important responsibility. iii. Nominating Committee The Nominating Committee, also sometimes known as the Committee on Trustees, is typically charged with identifying and recruiting prospective Directors/Trustees or officers. The Committee is also charged with orienting new Directors and Officers and re-nominating existing Directors or Officers. iv. Development Committee The Development Committee is in charge of fundraising activity. The Committee should have an express emphasis on nurturing external relationships to enhance the school's ability to attract external private funding resources.

The Development Committee is not the only group that should be involved in fundraising. All Directors should be involved in fund development and a Director’s desire to participate in this aspect of the Board’s activities should be viewed as an important criterion in selecting Board members.

LCW Practice Advisor

b. Recommended Committees In addition to the four general standing committees, it is also a good practice to include an Audit Committee and Compensation Committee, which provide oversight to ensure compliance with applicable law i. Audit Committee The 2004 California Nonprofit Integrity Act requires an Audit Committee. Although the Act expressly exempts educational institutions from this requirement 49 , inclusion of such a Committee reflects a “best practice” that is consistent with the legal trend toward such

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 38