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December 3, 2018

S O P H I A S H AW ’ 9 9 , M E L A N I E M I L L E R ’ 1 8 , A N D WA Y N E M C P H E R S O N ’ 1 9

Elevate College Access and

Success Program
(Board Meeting Role-Play Exercise)
Te Elevate College Access and Success Program, an after-school program serving 500 diverse
high school students throughout the far North Side of Chicago, is riding a wave of success. Elevate
students’ grades and test scores have been steadily improving year after year, and its graduates are
gaining admission and competitive scholarships to selective colleges across the country. Over 350
Elevate scholars have now graduated from college, building an enthusiastic cohort of alumni. Te
program’s success is beginning to attract attention from leaders in other Chicago communities,
and program applications are skyrocketing. Before the last school year, the organization had to
turn away 50 student applicants due to resource constraints in funding, human capital, and space.

Te board of directors wants Elevate to expand to meet the need for its services, but can’t
agree on how. For example, should it replicate its services in a new geographic area? Should it
deepen its services to its existing students—for example, by coaching them during the day in their
schools? Should Elevate expand to ofer support to audiences of diferent ages, such as middle
or elementary school students and/or their parents? Or, should it move outside its traditional
purview of academic counseling and address the needs of area residents for workforce training,
health counseling, and legal support? Should Elevate merge with or acquire another nonproft
organization that has a complementary mission and does similar work elsewhere in the region?

©2018 by the Kellogg School of Management at Northwestern University. Tis case was prepared by Professor
Sophia Shaw ’99, Melanie Miller ’18, and Wayne McPherson ’19. Cases are developed solely as the basis for class
discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of efective or
inefective management. Some details may have been fctionalized for pedagogical purposes. To order copies or request
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Conficts and diferences of opinion among members of the board of directors are preventing
decisions from being made. In addition, all of the proposed growth strategies require additional
capital and resources. Te board has to identify the best way to choose and execute a growth
strategy without hindering Elevate’s current success and quality of student support.

You will attend the upcoming meeting and work through a meeting agenda (Exhibit 1) to
plan for the future. You will either sign up for one of the roles (described below) or be assigned
one. Preparation is key: in addition to learning about the organization and developing the
character whose role you will play, you will need to prepare by reading the minutes from the
most recent board meeting (Exhibit 2), as well as excerpts from the organization’s Performance
Dashboard (Exhibit 3), Statement of Director Commitment and Responsibilities (Exhibit 4), as
well as Elevate’s abbreviated fnancial statements (Exhibits 5 and 6). Feel free to meet with other
board members in advance. You should also review the basics of parliamentary procedure prior to
this meeting simulation; although the case does not focus on the nuances of parliamentary rules,
having fuency in them makes the conversation more productive. Participants are encouraged to
relax and have fun in their roles, invent information if the case does not provide it, and bring their
own backgrounds and perspectives to the characters they play.

Tere is no right answer or outcome to this role-play exercise; it is intended to provide

an opportunity to experience board meeting dynamics and logistics, determine how to scale a
nonproft for maximum impact, learn about governance best practices, and become familiar with
nonproft fnancial statements, dashboards, and new board member recruitment strategies.

Background
Te Elevate College Access and Success Program was founded 15 years ago to provide after-
school programming to low-income high school students, to better prepare and equip them to
apply to and attend college. Te program, which was originally ofered only to residents of the
North Side Chicago neighborhood of Rogers Park, has expanded to helping any high school
student who lives within about fve miles of Rogers Park. Te students are primarily from very low-
to-moderate income families. Many are frst-generation Americans, and some are undocumented
in the United States. Rogers Park is a neighborhood of mixed incomes, races, and ethnicities.
Nearly 25% of households live below the poverty line and approximately 50% identify as African
American or Latino. Rogers Park has been revitalized in recent years through business, community,
and economic development. However, the dominant resident profle remains low-to-moderate
income families.

Te annual budget for Elevate is roughly $9 million; its fscal year runs from July 1 to June
30. Te organization does not generate any earned income from its programs, but has a diversifed
raised revenue stream, receiving 48% of its revenue from grants from foundations (including 21%
from corporate foundations) and 18% from individual contributions (including 4% from program
alumni). Last year, Elevate received 25% of its revenue from government contracts and 9% from
other sources. As Exhibit 5 illustrates, Elevate was successful in attracting some larger individual
contributions over the past fscal year. As a result, the executive director decided to accelerate the

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planned hire of a program director by six months. As the year went on, the executive director
scaled back some operating expenses, particularly in “other services.” As a result, the year’s changes
in net assets remains favorable to budget coming into the board meeting.

Te organization employs 35 salaried staf members, including an executive director, CFO,

human resources director, marketing director, development (fundraising) director, program
director, managers of the after-school programs, tutors, college counselors, and support staf. Staf
members lead programs in a variety of areas and ofer the programs to students through Elevate’s 50
volunteers, who undergo a training program to learn how to support students. Te overwhelming
majority of Elevate’s staf, board, and volunteers identify as Caucasian.

Elevate serves 500 high school students. According to a recent survey using US Census Bureau
data, 50% of them identify as Hispanic/Latino, 25% as Black or African American, 11% as White,
5% Asian, 1% as American Indian, and 8% as more than one race.

For students entering ninth grade through the end of their senior year, Elevate provides free
individual tutoring and high school class selection guidance, SAT and ACT preparation, college
and scholarship/fnancial aid counseling, and post-enrollment mentoring. Tese programs are
targeted specifcally to help students gain not only admission but also full scholarships to top
colleges and universities, with the goal of graduating within four to fve years. Elevate ofers the
following programs:

• Class Tutoring and Selection: Class Tutoring and Selection program staf work closely with
students, advisors, teachers, and schools to ensure that each student has the opportunity
to enroll in challenging and rewarding classes to bolster their academic profle for college
applications. Advisors talk one-on-one with students and parents about the benefts of
honors and Advanced Placement courses. Once enrolled in these higher-level courses,
students work closely with tutors who support their academic success. Tutors are provided
on an as-needed basis to students who need the most support.
• SAT and ACT Preparation: Te SAT and ACT Preparation program contracts with
teachers and current college students to administer preparation programs to high school
sophomores and juniors. Students take full-length, proctored SAT and ACT exams in the
preparation program. Test results are used to help instructors identify critical improvement
areas for each student; students then receive small group lessons from tutors to master
the topics.
• College and Financial Aid Counseling: Elevate’s College and Financial Aid Counseling
program partners closely with families to help them navigate every step of the college
application process. Te team has strong relationships with undergraduate admissions
ofces at some of the nation’s top colleges and universities. Te junior curriculum helps
students explore colleges and introduces them to college life through panels with current
college students and campus tours. Te senior curriculum provides students entering the
school selection and application process with the tools to create strong personal statements,
school-specifc essays, and recommendations to gain admission. Te senior curriculum
also helps students and their families apply for fnancial aid and scholarships.

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• Post-Enrollment Peer Mentoring: Te Post-Enrollment Peer Mentoring program oversees

students’ transition to higher education by providing support and encouragement through
college graduation. Current college students and new graduates typically serve as coaches
to students heading of to college. Te premise of the peer mentoring program is to foster
academic and personal success for each Elevate graduate through workshops, individual
advising, and social programming. Te ultimate goal is to help students identify and use
the resources available on their college campus to help them succeed.
• Other Services as Needed: On occasion, Elevate has supported students who need physical or
mental health services and legal advice on a wide variety of issues, including immigration
and employment. While not an area of expertise or focus for Elevate, staf members are
receiving more and more requests for assistance in these areas.

Elevate has done extremely well over the last few years. Elevate scholars are being recruited to
select schools, often with a full or signifcant scholarship, in higher numbers each year. However,
important decisions must be made to address the large demand for services that cannot be met with
current stafng, budget, and space resources. Elevate must craft a strategy to achieve sustainable
growth and back it up with an operating plan and additional capital resources without hindering
the organization’s current success and the quality of its programs and support.

Board of Directors
Elevate was incorporated in the State of Illinois and ofcially granted 501(c)(3) (i.e., tax-
exempt) status by the Internal Revenue Service (IRS) in 2003. At that time, a board of six directors
was established. Since its founding, the board has voted to amend its bylaws, and the maximum
board size is now 15 members with a 10-person minimum. Elevate’s bylaws specify that a quorum
is 50% of voting board members (ex ofcio members do not have the ability to vote, nor do the
staf, such as the executive director and chief fnancial ofcer, who attend board meetings in a
supporting role). Te board is well versed in its fduciary responsibilities, as well its role to hire
and evaluate the organization’s chief executive. Te bylaws do not call for term limits; each board
member is elected to a three-year term that can be renewed an unlimited number of times by the
board. As Exhibit 4 details, each board member is expected to donate or fundraise (from other
places) $1,000 a year to Elevate’s annual fund, as well as support the organization’s fundraising
events and capital campaigns as they arise.

Te board meets at the organization’s Rogers Park location at 4:00 p.m. on the frst Wednesday
of every other month. Meetings last for an hour and are usually very congenial, given that the
organization has been doing very well and recently hit milestones that have put it on a great
trajectory for future success.

However, with the organization now at an infection point, its members must make some very
important decisions regarding the best strategies for future growth and funding. Board members
are not unanimous on the strategic course to follow and are also conficted by personal loyalties to
the executive director and to the founder, who now sits on the board. Te executive director wants
to pursue an aggressive expansion plan that, among other things, brings services to a diferent

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neighborhood of Chicago—the South Side community of Englewood, about 20 miles from

Rogers Park. Te founder, who once served as executive director but was elected to Elevate’s board
of directors fve years ago, has always been committed to helping students in the Rogers Park area,
where s/he grew up. S/he believes that the organization’s roots should remain in Rogers Park and
nearby neighborhoods. Te founder also disagrees with the executive director’s decision to turn
families away due to resource constraints, but has not ofered any concrete solutions to make sure
the students’ needs, or the organization’s long-term resource requirements, would be fulflled.

In addition to having diferences in perspective over Elevate’s growth strategy, some board
members are frustrated by the disconnect between the socioeconomic demographics of Elevate’s
employees and board members, and the population it serves. Tey have voiced their opinions that
more diversity is needed on the board. Te question is, how should they bring about that diversity
and will it come at the cost of philanthropic donations?

Tese conficts prevent board members from making critical decisions, such as how many
students to accept this coming year, and where they should look for real estate for program delivery
and potentially new ofce space. Te lack of a clearly defned strategy and budget also challenges
the development director, who must articulate the organization’s goals to donors to raise needed
funds.

Members of the Board of Directors

(for a 12-person simulated board meeting)
1. Lawyer and Chair of the Board (“Charlie”)

Te board chair is a seasoned board member who has served on the board for eight years and
recently became chair. Charlie is in his/her mid-60s and is a partner at a major Chicago law frm.
A chief concern of the chair is that meetings are run efciently and that they start and end on
time, yet s/he tries hard to solicit the input and diverse opinions from everyone sitting around the
table. S/he believes that all board members must fulfll Elevate’s stated Director Commitment and
Responsibilities (Exhibit 4). S/he gives generously to the organization from his/her own pocket
and, supported by the law frm’s partners, sponsors Elevate’s events through the frm’s marketing
funds. S/he is a strong supporter of the executive director, but also has ties to the founder and feels
a strong allegiance to him/her as well. Like some of the other board members, Charlie is concerned
that people who might add diversity to the board won’t have enough money to make the fnancial
contributions expected of Elevate’s directors.

2. Banker and Vice Chair of the Board (“Alex”)

Te vice chair is being primed to step into the role of chair in two years, when the current
chair steps down. Born in Chicago to immigrant parents, Alex is in his/her late 30s and is a
manager of a local bank. S/he recognizes the need for Elevate’s programs and believes s/he is one of
the only board members who can identify with the students and families Elevate serves. Alex feels
strongly that the board should prioritize increasing ethnic and racial diversity on the board and,
as a self-made community leader, resents some board members’ assertion that diversity will come

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at the expense of philanthropic donations. S/he feels that assuming someone cannot give money
because s/he is of a non-white race or not from a wealthy background is racist and condescending.

3. Corporate CPA, Finance Committee Chair, and Treasurer of the Board (“Sol”)

Te corporate CPA is in his/her late 50s, works as a vice president at a Fortune 500
pharmaceutical company, and is involved in that company’s volunteer service program. S/he
has always had a passion for education but chose to pursue a career in accounting for practical
reasons. S/he has been on the board since it started and has close ties to the founder, but also
has great respect for the executive director. S/he has a very strong focus on Elevate’s bottom line
and would like to see the organization grow, but only if there is signifcant new revenue to cover
new expenses. Much of Elevate’s success to date can be attributed to Sol’s thoughtful engagement
with the organization’s staf over time. S/he understands that a nonproft must generate a surplus
of revenue over expenses to fulfll its mission and shares his/her technical skills and support with
senior team members without micromanaging. Like some of the other board members, Sol is
concerned that people who might add diversity to the board won’t have enough money to make
the fnancial contributions expected of Elevate’s directors.

4. Foundation Representative, Secretary of the Board (“Jamie”)

Te foundation representative, in his/her mid-40s, works for a foundation that has made
generous grants to Elevate for several years. Tese grants have been restricted and continue to
be earmarked specifcally for the SAT and ACT Prep Program, because the foundation has a
strong passion for equalizing academic success and opportunity by reducing inequality gaps in
standardized tests. Jamie believes strongly that the board’s central responsibility is to raise money
for Elevate, but feels that his/her direction of foundation funds satisfes his/her responsibility
to give. Some of Jamie’s fellow board members, especially Sol, Kelly, Addison, and Chris, who
both volunteer their time and contribute money, think that his/her reluctance to donate personal
funds demonstrates a lack of commitment to Elevate. Jamie did not attend the most recent board
meeting.

5. Founder of Elevate and Chair of Nominating Committee (“Sam”)

Te founder started Elevate after a long career in teaching and career counseling for Chicago
Public Schools. S/he was raised in Rogers Park and is in his/her mid-60s. Sam served as executive
director for ten years but stepped down fve years ago in good standing; s/he was then elected
to the board. Te founder believes Elevate’s sole role is to help as many Rogers Park students as
possible attend and thrive in college. S/he is a little uncomfortable in a role other than executive
director and has often overstepped as board member, micromanaging the executive director and
unconsciously usurping his/her power in the boardroom. Sam does not donate at the level of most
other board members, as s/he feels that giving his/her time and expertise relieves him/her of any
fnancial expectations. Sam agrees with Kendall that because s/he lends expertise and a diverse
voice to the board, his/her fnancial expectations should be reduced or eliminated altogether. Sam,
Kendall, and Pat are the three board members who have not given to the annual fund this year.
Tis presents a big issue for the other board members, especially because Sam serves as nominating
committee chair and must communicate donation expectations to potential board members

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(Exhibit 4). Because Sam doesn’t agree with the expectations required of new board members, s/he
is sending mixed signals.

6. Principal of Rogers Park High School and Chair of the Program Committee (“Kendall”)

Kendall, who is in his/her mid-40s, doesn’t have a lot of classroom experience but knows
Rogers Park high school students. S/he believes that s/he has all of the insights into what students
in the community need because of his/her day job. Kendall also feels that because s/he lends
needed diversity to the board, his/her fnancial expectations should be reduced or eliminated
altogether. Kendall is one of three board members—including Sam and Pat—who has not given
to the annual fund this year. Kendall often asserts that people who might ofer greater diversity to
the board don’t have enough money to donate. Charlie, Lee, and Sol also make this generalization,
but it really bothers Alex, Sidney, and Terry, all of whom come from low-income upbringings but
are now successful and donate generously. Kendall did not attend the most recent board meeting.

7. Business Owner, Chair of the Fundraising Committee (“Kelly”)

Kelly owns a chain of highly successful niche grocery stores located throughout Chicago,
including two that serve Rogers Park and surrounding neighborhoods. Te stores are a family
business, which s/he has taken over after the retirement of his/her mother, who started the chain
50 years ago as a single parent. Kelly is knowledgeable not only about retail but also about real
estate and construction—expertise that Elevate’s board needs now. S/he has two adult children
who recently graduated from liberal arts colleges, and s/he believes strongly in access to education
and the value of a college degree. Kelly not only gives money from his/her family foundation, but
also raises money and marketing support for Elevate through promotions at his/her stores. S/he
believes that all board members need to be able to commit to the fnancial contributions required
of them and, ideally, volunteer their time to really understand the organization’s programs.

8. President of an Evanston School Parent Teacher Association (PTA) and Former Nonproft
Leader (“Addison”)

Addison is a stay-at-home parent in his/her late 40s. S/he graduated 15 years ago with an
MBA from Northwestern University’s Kellogg School of Management, became vice president of
operations for a major Chicago cultural institution, and has since taken time of from his/her
career to raise two children. During this time, Addison has looked for ways to get involved in
his/her neighborhood and continue to demonstrate his/her leadership and operations skills. S/he
joined the board four years ago and his/her priority is getting as many students as possible to apply
to, attend, and complete college. S/he regularly volunteers to assist with programs and has served
as an informal mentor to students in the program in need of extra help.

9. Honorary Board Member, ex ofcio, Retired U.S. Army Corps of Engineers Colonel (“Lee”)

Lee has served on the board since Elevate’s founding and was the frst board chair during the
organization’s formative initial six years. Lee has been very active in recruiting volunteers to serve
the organization in tutoring, college counseling, and peer mentoring capacities. S/he is an expert
test taker and earned near-perfect scores on both the SAT and ACT exams, and feels standardized

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tests play an important role in measuring learning. Even though Lee is no longer a voting board
member—s/he was elected to honorary board member status two years ago—his/her opinions
carry a tremendous amount of weight. Like some of the other board members, Lee is concerned
that people who might add diversity to the board won’t have enough money to make the fnancial
contributions expected of Elevate’s directors.

10. Executive Director of Elevate, ex ofcio Member of the Board (“Taylor”)

Te executive director has held the position for the last fve years, since the founder stepped
down. Taylor brings many years of admissions experience to Elevate from his/her previous role
as a senior associate dean of admissions at a top-tier national university in the Philadelphia area.
One of Terry’s top priorities is sustainable growth for the organization outside of Rogers Park.
S/he strongly believes that other Chicago neighborhoods could beneft from Elevate’s services for
at-risk students and their families. Taylor is also very ambitious and enjoys being in the education-
community spotlight. Te founder has some issues with Taylor, and on numerous occasions has
tried to micromanage Taylor or usurp his/her decision-making power. Te founder has gotten
away with it because of his/her strong relationship with many of the board members.

11. Kellogg Board Fellow, ex ofcio Member of the Board (“Jordan”)

Elevate participates in the board fellows program with the Kellogg School of Management.
Jordan, a second-year MBA student at Kellogg, serves on the board in an ex ofcio capacity. For
nearly 18 months, s/he has informally supported the marketing committee with various initiatives,
and spearheaded the development of a “dashboard” to document key performance metrics (excerpt,
Exhibit 3). Jordan will graduate in a few weeks to pursue a career as a consultant at a top-tier frm
in New York.

12. Chief Financial Ofcer of Elevate, attends board meetings as staf support (cannot vote) (“Ali”)

Ali, the chief fnancial ofcer, brings more than 22 years of classroom and administration
experience to Elevate from his/her previous role as teacher and director of fnance for Teach for
America in Baltimore, Maryland. Te CFO is concerned about Elevate’s aggressive growth plans,
despite its outstanding performance over the last few years. His/her goal is to reduce Elevate’s
reliance on individual and corporate donors, and foundation and government grants by fnding
new creative revenue streams to leverage. His/her fnancial acumen and pragmatic perspective
make Ali an important resource at board meetings. Ali also has his/her sights set on an executive
director role in the future—either at Elevate or a similar organization.

Additional Board Members

(for a larger simulated board meeting)
13. City Colleges of Chicago Provost (“Pat”)

Pat was asked by an infuential city leader to join this board and felt pressured to accept. S/he
doesn’t have time to serve on the board, however, and as a result, tends to be disengaged and has
to be regularly reminded to fulfll his/her responsibilities. Pat did not attend the most recent board

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meeting and feels that his/her fnancial expectations should be reduced or eliminated altogether.
Sam, Kendall, and Pat are the three board members who have not yet donated to the annual fund
this year.

14. Restaurateur (“Sidney”)

Sidney runs a popular restaurant in Rogers Park and is in his/her mid-30s. S/he grew up
in the neighborhood and recently returned to start his/her restaurant and actively support the
community. S/he is the newest board member, so s/he has a lot to learn to get up to speed. Sidney
disagrees with some board members’ assertion that people who might add diversity to the board
won’t have enough money to make the fnancial contributions expected of Elevate’s directors.

15. Entrepreneur (“Whitney”)

Whitney, an entrepreneur and venture capitalist, is in his/her early 30s and is the largest
individual donor of Elevate. S/he has been on the board for the last two years and does not play
a signifcant leadership role; however, s/he continues to donate a lot of his/her wealth. His/her
lack of involvement outside of donating money irritates the board members, but the founder and
executive director will not press the issue because of Whitney’s large, consistent annual donations.
S/he consistently misses board meetings, but as s/he believes the board’s primary goal is to raise
funds for the organization, thinks his/her duty is being fulflled. Whitney did not attend the most
recent board meeting.

16. Associate at Big Consulting Firm (“Chris”)

Chris is an associate at a big, Chicago-based management consulting frm. Two years ago,
s/he graduated with an MBA from the University of Chicago’s Booth School of Business. Although
Chris is one of the smaller fnancial contributors to Elevate, s/he volunteered to work with Elevate’s
special events staf to help with planning and logistics for the annual gala, which raised nearly
$100K last year. S/he doesn’t have signifcant experience in education but wants to learn and is
willing to take on any project, no matter how small, that will help the organization thrive.

17. Architect (“Terry”)

Terry, an architect in his/her mid-30s, was born and raised on the West Side of Chicago. With
personal knowledge of their struggles, s/he is passionate about increasing college access for low-
income, frst-generation college students. His/her extreme dedication to and passion for Elevate’s
mission leads him/her to make decisions solely based on emotion. Terry did not attend the most
recent board meeting. Terry disagrees with some board members’ assertion that people who might
add diversity to the board won’t have enough money to make the fnancial contributions expected
of Elevate’s directors.

The Board’s Role Is to Help Build a Road to the Future

Elevate’s board and staf have built a very successful program that has the power to change
lives. Every successful startup—whether a nonproft or a traditional corporation—reaches a

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point when its leaders must wrestle with the path to take for the future: what changes must be
made to scale in order to serve more people? Are the right people in the right roles to move the
organization forward? What resources are needed to reach Elevate’s long-term goals? Te capital and
governance decisions made by the board and senior leadership in this meeting will lay the road to
Elevate’s future.

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Exhibit 1: Elevate May Meeting Agenda

El eva te : Co l le ge Ac c ess and S uc c ess Program

Me e ting of t he B oard of Direct ors
May 14
4:00 pm
1. Welcome and Call to Order—Chair
a. Recording of quorum to conduct business
b. Approval of March 14 minutes

2. Executive Director’s Report and Discussion

a. Program metrics review (dashboard) with Kellogg board fellow
b. Programming/organizational expansion strategy—discussion
c. New ofce space proposal

3. Finance Committee Report

a. Year-to-date fnancial status—fnance committee chair and Elevate CFO
b. Year-to-date fundraising report—fundraising committee chair
c. Reminder to review audited fnancial statements and IRS Form 990

4. Report of the Nominating Committee—Nominating Committee Chair

a. Governance metrics review (dashboard) with Kellogg board fellow
b. Key traits for potential new board members—discussion
c. Future board member recruitment strategy

5. Call for New Business

6. Adjourn

Additional Background on Select Agenda Items

• New Board Member Strategy: Many board members have proposed adding new board
members who are representative of the demographics of the community Elevate serves—
for example, parents of students in the program and/or alumni of the program. Tey believe
these diverse perspectives will help the organization grow to the next level. However, others
view the board as a prestigious group to which admission is granted only to people who
are able to donate money and have a network of peers to tap for donations and tables at
the annual gala. Te nominating committee would like to use time at this meeting to lead
a discussion on how to develop a new board recruitment strategy, including a discussion
of whether fnancial expectations (see Exhibit 4) should be lower for prospective board
members who represent diversity in some way.

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• Review of Board/Governance Dashboard Excerpt: Te Kellogg board fellow recently

helped Elevate create a dashboard (excerpt, Exhibit 3) that measures success in a number
of organizational areas, including board governance. Te executive director would
like the board fellow to present his/her fndings and review with the board where the
organization stands to remind board members of their commitment to the organization
and opportunities for improvement.
• Organizational Growth: Te organization has been doing very well lately and wants to
expand and grow to make a bigger impact. Tere has been some previous discussion of
acquiring another organization that does similar work elsewhere in Chicago, expanding
existing programs in new geographic areas, or adding programs either for younger
students or college students. Te executive director is going to propose a plan to expand to
Chicago’s South Side neighborhood of Englewood.
• Ofce Space: Te organization has outgrown its current real estate footprint and needs to
evaluate options for a larger ofce space. Given Elevate’s ties to Rogers Park, the founder
feels strongly that the organization’s headquarters should stay there. Given the executive
director’s desire to expand programming to a new geographic area in Chicago, s/he
believes that they should look at spaces outside of Rogers Park. Te executive director
would like to bring a recommendation to lease a space in downtown Chicago to the board
for discussion.
Source: Created by the authors.

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Exhibit 2: Elevate March Meeting Minutes

Elevat e
M e e ti ng of t he B oard of Direct ors
Marc h 14
6:00 pm
MINUTES

Directors Attending: Alex, Charlie, Chris, Sam, Sidney, Sol, Addison, Kelly
Directors Not Attending: Jamie, Kendall, Pat, Terry, Whitney
Ex ofcio Members in Attendance: Lee, Jordan, Taylor
Staf in Attendance: Ali

I. Call to Order, Announcement of Quorum, Approval of Minutes – Chair

Te chair called the meeting to order. Te number of board members present at the
meeting constituted the quorum necessary for the transaction of business. A motion
to approve the minutes of the January meeting was made, seconded, and unanimously
approved. Te chair thanked the board members for their attendance.
II. Finance and Investment Committee Report – Finance Committee Chair
Year-to-date budget: Te treasurer reported that Elevate is in a strong fnancial position.
Tis year’s audit is currently underway and will be reviewed by the audit committee
together with the enterprise risk management plan for the coming year. Te completed
IRS Form 990 as well as audited fnancial statements will be available for review shortly
after the next board meeting.
III. Executive Director Report
Te executive director gave remarks on the progress of the academic year. Te executive
director shared that Elevate unfortunately had to turn away 50 families and their high
school students from programs due to resource constraints in staf, tutors, and ofce
space for programming. Te executive director stressed growth as a focus for Elevate.
Also, the executive director provided a summary of the board/governance dashboard
created by the Kellogg board fellow. A detailed overview of the dashboard will be
discussed at the next board meeting.
IV. Nominating Committee Report – Nominating Committee Chair
Te next nominating committee meeting will be held in February. Te committee is
currently working on a board recruitment strategy focused specifcally on adding board
members who are representative of the community Elevate serves. Te goal of this
initiative is to add diverse perspectives to the board leadership outside of traditional
fundraising expectations. Te committee is accepting nominations for the board.
V. Adjourn
Tere being no further business, the meeting was adjourned. Te next meeting of the
board will take place on May 14.

Source: Created by the authors.

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Exhibit 3: Performance Dashboard Excerpts

Board/Governance Range Key
Indicator Target Now Celebrate Monitor Act Now
Attendance at board meetings 100% 85% 100% 80% 70%
New nominees meeting criteria 85% 65% 85% 75% 65%
# of meetings focused on strategy 80% 80% 80% 50% 30%
Total board members 13 10 13 10 7
Board skill sets filled >6 7 6 4 2
% of board members representing backgrounds of community 25% 5% 25% 15% 10%
Leadership positions filled 8 8 8 6 4
Board action follow-up completed 90% 80% 90% 80% 70%
New board member recruitment 5 1 5 3 1
% of board members meeting fundraising expectations 100% 80% 100% 90% 80%
Board member participation in annual fund 100% 70% 100% 90% 80%
Board satisfaction (survey scale 1-5) 5 4 5 4 3
Board engagement (average # activities/site visits/board meetings per year) 10 5 10 5 3

Programs
Indicator Target Now
# of students enrolled in programs 450 500 450 425 400
# of students turned away from programs 0 50 0 10 20
% of students accepted into college 100% 100% 100% 90% 80%
% of students graduating college in 5 years or fewer 70% 75% 70% 50% 30%
Average student satisfaction 4.8 4.7 4.7 4.3 4
Average parent satisfaction 4.8 4.4 4.7 4.3 4

Source: Created by the authors based on Compass Point Nonprofit Services, Library of Sample Dashboard Indicators.

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Exhibit 4: Statement of Director Commitment and Responsibilities

Eleva te Co ll e g e A cc ess and S uccess Program ( “Elev at e”)

Sta te me nt o f Di re ctor C ommit ment and Responsibilit ies
Directors of Elevate are responsible for the development and sustainability of Elevate and are
charged with maintaining the legacy of the organization. Te board of directors is a corporate
body led by a board chair. Te board provides strategic direction, approves policies and monitors
the implementation of those policies, and defers to Elevate’s executive director for the operations
of programs.

Elevate is a leading provider of after-school education programs on Chicago’s far North Side.
Directorship of Elevate ofers a sense of pride and demands a commitment to Elevate’s future.

Te following is required of directors:

1. Directors must demonstrate an interest in and commitment to Elevate.

2. Directors are expected to attend and participate in meetings of the board and committees.

3. Directors are expected to provide fnancial support to Elevate through:

a. An annual $1,000 donation to support Elevate’s annual fund/operating budget

b. Participation in any Elevate capital campaign consistent with the member’s resources
and capacity
c. Te purchase of tickets or a table, or a donation of an equivalent amount, to one
annual beneft party
4. Directors have a responsibility to carry out their duties in an honest and professional
manner and within the scope of their authority as set forth in the General Not-for Proft
Act of the State of Illinois and in the Articles of Incorporation and the Bylaws of Elevate.
Terefore, directors will:

a. Comply with all applicable laws, rules, and regulations

b. Act in a manner to enhance the reputation of Elevate
c. Disclose potential conficts of interest that they may have regarding any matters that
may come before the board, and abstain from discussion of and voting on any matter
in which the director has or may have a confict of interest
d. Respect the confdentiality of information relating to the afairs of Elevate acquired in
the course of their service as directors, except when authorized or legally required to
disclose such information
e. Not use confdential information acquired in the course of their service as directors for
their personal advantage

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f. Annually sign a Confict of Interest Statement, which will be reviewed by Elevate’s

audit committee
5. Members of Elevate’s investment committee shall not participate in any way in the
deliberations of the committee with respect to any investment vehicle (other than publicly
traded funds and securities) in which the member or any person in his/her immediate
family has any interest, direct or indirect. For this purpose, the term “immediate family”
shall include a member’s spouse, partner, parent, children, and grandchildren, including
step and in-law relationships.
Source: Created by the authors based on the Statement of Director Commitment and Responsibilities of a cultural institution.

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Exhibit 5: Statement of Activities

ELEVATE COLLEGE ACCESS AND SUCCESS PROGRAM
STATEMENT OF ACTIVITIES
FOR THE TEN MONTHS ENDED APRIL 30, XXXX

For the Month Ended April 30, XXXX FISCAL YEAR-TO-DATE FISCAL

ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE BUDGET

REVENUE:
Contributions $ 757,417 $ 729,689 $ 27,728 $ 7,348,720 $ 7,250,000 $ 98,720 $ 9,089,000
Grants 23,000 40,000 $ (17,000) 50,000 60,000 $ (10,000) 85,000
Investment Income 7,001 8,333 $ (1,332) 58,252 75,000 $ (16,748) 100,000

TOTAL REVENUE 787,418 778,022 $ 9,396 7,456,972 7,385,000 71,972 9,274,000

EXPENSES:
Salary and Wages 321,421 316,667 (4,754) 2,894,773 2,850,000 (44,773) 3,800,000
Other Employee Benefits 64,456 63,333 (1,123) 583,216 570,000 (13,216) 760,000
Payroll Taxes 25,455 25,000 (455) 231,965 225,000 (6,965) 300,000
Total Salaries and Related Expenses 411,332 405,000 (6,332) 3,709,954 3,645,000 (64,954) 4,860,000

Accounting Services 3,750 3,800 50 37,500 38,000 500 50,000

Advertising 667 744 77 6,000 7,440 1,440 8,000
Conferences, Conventions, and Meetings 68,693 74,481 5,788 739,642 744,814 5,172 824,000
Depreciation Expense 14,200 11,300 (2,900) 113,000 113,000 - 170,000
Education Materials and Supplies 41,278 45,000 3,722 438,968 450,000 11,032 600,000
Information Technology 12,417 12,125 (292) 111,750 121,250 9,500 149,000
Insurance 750 685 (65) 6,750 6,852 102 9,000
Occupancy 19,500 19,500 - 195,000 195,000 - 260,000
Office Expenses 4,500 5,344 844 40,500 53,440 12,940 54,000
Other Services 128,206 139,500 11,294 1,350,103 1,395,000 44,897 1,538,000
Travel 1,325 2,225 900 15,674 22,250 6,576 25,000

TOTAL EXPENSES 706,617 719,704 13,087 6,764,841 6,792,046 27,205 8,547,000

CHANGE IN NET ASSETS (OPERATING ACTIVITIES) $ 80,800 $ 58,318 $ 22,483 $ 692,131 $ 592,954 $ 99,177 $ 727,000

Source: Created by the authors based on the financial statements of a real career development organization serving high-potential,
underserved students.

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Exhibit 6: Statement of Financial Position

ELEVATE COLLEGE ACCESS AND SUCCESS PROGRAM
STATEMENT OF FINANCIAL POSITION
AS OF APRIL 30, XXXX

ASSETS:
Cash $ 582,748
Accounts receivable 41,975
Pledges and grants receivable 170,593
Prepaid expenses 85,145
Investments 1,439,172
Property and equipment, net of accumulated depreciation 3,380,972
Other assets 50,700

TOTAL ASSETS $ 5,751,305

LIABILITIES AND NET ASSETS

LIABILITIES
Accounts payable $ 398,636
Accrued expenses 84,809
Line of credit 155,000
Secured mortgages 1,718,835

TOTAL LIABILITIES 2,357,280

NET ASSETS
Unrestricted 3,163,025
Temporarily restricted 231,000

TOTAL NET ASSETS 3,394,025

TOTAL LIABILITIES AND NET ASSETS $ 5,751,305

Source: Created by the authors based on the financial statements of a real career development organization serving high-potential,
underserved students.

18 KELLOGG SCHOOL OF MANAGEMENT

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