Ask many people who work or serve on a nonprofit board and you will often hear a consistent theme. Board members often do not have a thorough understanding of how to properly serve on a nonprofit board, and sadly, many organizations do not have the resources to hire trainers to help well-meaning people become effective leaders. .
The reality is that serving well on a nonprofit board is a bit of an art and, in fact, a privilege that comes with responsibilities, including legal and regulatory obligations. Board members should always see themselves as representatives of the community and a bridge to the non-profit organization they serve. Because board members are considered to have a special status and position when they help lead nonprofits, they need to be aware of what they shouldn’t do to ensure they perform well.
- Serving is not a hobby: Serving on a nonprofit board can have benefits for board members because people meet like-minded peers. For example, you may find people who will help you in your career or business as you develop new relationships with them during meetings and events. However, it is always important to remember that the main reason you are serving on a board is that while there are indirect benefits that could potentially be derived from the position, your primary focus should be on giving your time, talent and money to the charity. Serving on a nonprofit board is a serious responsibility and requires commitment and attention to make sure you are bringing your “A game” to the cause.
- It’s not just about the mission: Every organization should be mission-focused, of course, but it’s not just about the cause. It is essential that board members are fluent and familiar with the organization’s mission, vision, statistics, facts, stories, and strategic plan. The mission is only one element of the whole picture, and board members need to understand it at a high level, especially when they are engaging with others outside of the organization. When board members go out to meet with donors and prospects, they are usually accompanied by the CEO or a fundraiser. Team members can explain, elaborate, and add more color to a board member’s words and conversations, but each board leader should strive to be fluent enough about the organization and their work to be able to participate in a discussion. noun.
- Don’t leave nonprofit politics to chance: Board members are responsible for ensuring the development, implementation, and enforcement of the organization’s policies. We live in a world of transparency, and in the digital age it’s easy for something that may be well-intentioned to get out of hand, and not in a good way. In other words, people can be quick to judge and criticize when they see something that has gone viral of some sort. The best defense for any situation is a great offense. Board members are responsible for ensuring that management and appropriate organizational legal and financial management advisors prepare documentation that is reviewed and updated as necessary on an annual basis. Policy documents that are essential to any nonprofit business include policies on donor privacy, email retention, whistleblowing, conflict of interest, document destruction, discrimination, and sexual harassment.
- No free ride: The reality is that carrying out an organization’s mission and the work it does on its programs requires money. It is also necessary to hire the most talented people to ensure that a team can properly plan and execute the work required. That means the money is a necessity for any non-profit organization. Board members have a legal and fiduciary responsibility to the organization in which they serve. They need to make sure a nonprofit has the resources it needs to complete its mission, and one of the most important needs a nonprofit has is money. Therefore, board members must understand that there must be a 100% board commitment to annual giving based on the financial capacity of each board member. Those with greater resources can give more, and one of the best rules to use in board fundraising is “give or take,” which means you give out of pocket or raise it from others. Board members should be aware that donors (particularly institutional sponsors) ask about board donations and if you can’t demonstrate the board’s commitment to the cause, why should anyone else want to donate?
- Micromanagement doesn’t work: Key aspects of the board members’ job are overseeing overall strategy and planning, securing resources, approving the organization’s budgets, aligning the organization’s programs and services with the CEO’s mission and performance. What the board shouldn’t be doing is micromanaging an organization, questioning the CEO or management team, or getting involved in routine staffing issues. Let’s look at it another way; When companies have boards of directors, members understand that they have an oversight and governance role. They do not work on the day-to-day business of the corporation. Nonprofits are businesses, and board members need to understand that unless they are dealing with a crisis, their role is one of governance and oversight and not getting into the details of the organization’s management and operations; that is the function of management.
- Board guidance and assessments are not sidebars: One of the essential activities that any board must perform is to reflect a mirror on itself. Start by having new board members receive an orientation, either individually as they join or as part of an annual board orientation so they understand good governance. Let’s be honest; Most people are not experts in nonprofit board roles and responsibilities. If you want your charity to grow into a sustainable organization, you need to start with leadership at the top. You should orient board members on their responsibilities to the board and also to assigned committees. And more generally, having an annual board meeting that evaluates board performance is essential. Organizations should budget for a consultant or facilitator to come work with them once a year to assess board performance, which is often done during a board retreat and with tools including surveys, workshops, and other tools. evaluation, training and evaluation.
All nonprofit board members have different reasons for serving a certain group. Of course, there must always be passion and interest in the mission and work done by the charity. It should never be assumed that board members will know or understand your job. Nonprofit leaders have a responsibility to ensure they have a well-functioning organization and if the board chair isn’t talking about proper board governance, then CEOs shouldn’t be shy about bringing it up.
