Nonprofit Board Crisis

Nonprofit Board Fiduciary Duty #NonprofitBoards

Fiduciary duties can't be stated enough.  The following is a piece from a Phillipines paper.  Good to see and nicely stated in my opinion.  Were I to develop a board manual, following the statement of mission, values and organization's Theory of Change, I would post the following and make this the core of the on-boarding exercise and then ensure that all review it aloud at the annual meeting.

Fiduciary duties of association boards

By

 Octavio Peralta

 -

AUGUST 30, 2017

Continuing from my August 10 column, “Traits of High-Performing Association Boards”, let me share the fiduciary duties of association boards that I learned from the extensive knowledge resources of the American Society of Association Executives (Asae), of which I am a member. These principles are universal and applicable in the Philippine association setting.

A “fiduciary duty” is defined as “a legal obligation of one party to act in the best interest of another”. In the context of Philippine associations, the elected members of the Board of Trustees (BOT) act in the interest of their members. It is the responsibility of the BOT to see to it that they collectively work for the benefit of their association and its members. Here are the three fundamental fiduciary duties of the BOT:

Duty of Care—Requires taking care and exercising judgment that any reasonable and prudent person would exhibit in the process of making informed decisions, including acting in good faith, consistent with what you, as a member of the board, truly believes is in the best interest of the association. Examples of duty of care include preparing for and attending board meetings regularly, voting independently, paying attention to organizational activities and operations and delegating only to responsible individuals and following up conscientiously.

Duty of Loyalty—Calls for consideration and action in good faith to advance the interests of the association. Simply put: board members will not authorize or engage in transactions except those in which the best possible outcomes or terms for the association can be achieved. This standard constrains a board member from participating in board discussions and decisions when they, as an individual, have a conflict of interest. Examples of duty of loyalty are putting interests of the association before personal and professional interests and divulging any conflict of interest and not participating in related transactions.

Duty of Obedience—Requires obedience to the association’s mission, bylaws and policies, as well as honoring the terms and conditions of other standards of appropriate behavior, such as laws, rules and regulations. Examples of duty of obedience are living the association’s purpose and mission, complying with all applicable laws and the association’s governing documents, and insuring that approved and valid decisions are implemented.

 

 

Nonprofit Boards of Hate Groups #NonprofitBoards

Want to do harm?  Want to be a hate group?  Don't want to pay corporate income taxes for either activity? If you answer "yes" you can get a a Federal tax exempt status.  But why should you be able to?  I have wondered about this for many years and have to agree 100% with this New York Times op-ed which advocates for denying tax exempt status for those groups specifically identified with a Theory of Change that is all about doing harm to one or more characteristics of US citizens and non-citizens.  But what about those who's theory of change is not specific to doing harm to or removing one or more "types" of citizens?  Take for instance the NRA - doesn't it's policies leave some folks harmed?  What about Westboro Church which actively voices harmful messages to those whose gender or biological sexual orientation is "offensive to them.  And what even about the Boy Scouts who for years forbade gay troop leaders.  Consider PETA who will take actions that cause harm to their targets viewed as individuals that cause harm to animals.  And, I am sure the list goes on with both tiny acts or intentions of harm to overt intentions.  What to do?

At minimum, where direct harm is the only possible result, no tax exempt.  After that, clearer policies and maybe a review council of folks who might be considered "wise".  Perhaps the IRS should not even be the decider - who says their moral compass is so straight?

Anyway, check-out the article: https://www.nytimes.com/2017/08/29/opinion/white-supremacists-tax-exemptions.html?WT.mc_id=SmartBriefs-Newsletter&WT.mc_ev=click&ad-keywords=smartbriefsnl&_r=0 

Nonprofit Boards of Hate Groups #NonprofitBoards

Want to do harm?  Want to be a hate group?  Don't want to pay corporate income taxes for either activity? If you answer "yes" you can get a a Federal tax exempt status.  But why should you be able to?  I have wondered about this for many years and have to agree 100% with this New York Times op-ed which advocates for denying tax exempt status for those groups specifically identified with a Theory of Change that is all about doing harm to one or more characteristics of US citizens and non-citizens.  But what about those who's theory of change is not specific to doing harm to or removing one or more "types" of citizens?  Take for instance the NRA - doesn't it's policies leave some folks harmed?  What about Westboro Church which actively voices harmful messages to those whose gender or biological sexual orientation is "offensive to them.  And what even about the Boy Scouts who for years forbade gay troop leaders.  Consider PETA who will take actions that cause harm to their targets viewed as individuals that cause harm to animals.  And, I am sure the list goes on with both tiny acts or intentions of harm to overt intentions.  What to do?

At minimum, where direct harm is the only possible result, no tax exempt.  After that, clearer policies and maybe a review council of folks who might be considered "wise".  Perhaps the IRS should not even be the decider - who says their moral compass is so straight?

Anyway, check-out the article: https://www.nytimes.com/2017/08/29/opinion/white-supremacists-tax-exemptions.html?WT.mc_id=SmartBriefs-Newsletter&WT.mc_ev=click&ad-keywords=smartbriefsnl&_r=0 

Nonprofit Board Members Bringing their Smarts #NonprofitBoards

I have often heard and seen nonprofit execs say that their really smart board members tend to leave their smarts at the door when they come to board meetings.  Recruited for their passions and variety of experiences and knowledge, it's something about nonprofit board service, and particularly those from the business sector, that moves individuals to not use their skills.  The following Stanford Social Innovation Review prescriptive article (based on the author's experiences) addresses this challenge in particular and offers some advice for how nonprofit board members can share their gifts.  

How to Succeed on a Nonprofit Board

Dump your assumptions, and be curious.

By Daniela Barone Soares & Jon Huggett Aug. 28, 2017

Late one night, not too long ago, one of us got a phone call from a desperate executive director. The nonprofit he led was on the verge of bankruptcy. Over the years, the organization had thrived as a government provider, but a number of its big contracts were ending. For a long while, the executive director had been convinced the providers would renew. After all, they had done so innumerable times in the past. But as a new federal administration took over, it became clear the contracts were ending for good.

During the call, he took full responsibility for the situation. But he also couldn’t help questioning whether his board—filled with successful businesspeople—should have been more on top of things. In particular, he felt the board’s treasurer, a well-known CFO of a big corporation, wouldn’t have missed a looming crisis like this at her own company.

Ultimately, the nonprofit didn’t fold. But the crisis stressed relationships up and down the organization, and within a few months, the treasurer resigned. It was everybody’s loss.

Few organizational issues are clear-cut, and this was no exception. But in hindsight, the executive director and board directors agree that the board wasn’t primed for effectiveness. It had many talented members, but few of them had any real understanding of what being a good nonprofit board member entailed.

Unfortunately, in our experience—more than 30 years combined working in and with nonprofit boards—this problem is pretty common. Nonprofits actively court trustees from the business sector, believing their experience will add a lot of value to the organization, but many of these recruits don’t appreciate the complexity of the sector or the need to learn how to be a good trustee. As a result, they stop being the observant, motivated people they are in their for-profit roles. They stop thinking critically.

Why does this happen? We think it’s because a lot of businesspeople who join nonprofit boards enter their role with two very wrong preconceptions: 1) businesses are more efficient than nonprofits, and 2) nonprofits are more ethical than businesses.

Sure, by definition, at a high level, businesses focus on profit and the efficiencies needed to attain it, while charities focus on positive social or environmental change. But that’s a gross generalization, and about as accurate as any stereotype. In the granular world of day-to-day operations, if a board member who works in business thinks businesses are all about efficiency, then they might assume they are automatically overqualified as a nonprofit advisor. They might assume they don’t need to give their full attention to do a good job. And if they think people running charities are more ethical than most, then they might assume that the organization they’re advising doesn’t require scrutiny.

The reality is that nonprofit directors need to bring every bit of expertise they have to the task, because nonprofits are often far more complex to run and advise than commercial organizations. And every complex organization needs scrutiny.

Perhaps the very concept of “charity” is part of the problem; joining a board to “give back” or “donate” implies that board members already have all the ingredients to do so. It also implies that the problem is “out there.” Not true. We are all responsible for the social capital that surrounds us and must take to heart the many problems nonprofits and governments are trying to solve. Those serving on nonprofit boards can’t indulge in the thought that somehow we are separate from the people or causes we’re trying to help.

The very thought of separateness, in fact, may prevent board members from being curious in the kinds of ways that will help them do their best work. And curiosity, we think, is the key to becoming a successful board member.

Great board members ask who, what, when, where, how, how much, and why? They are:

• Curious about impact. They ask: How do we have impact? How do we meet or engage the people we are trying to help? Do we offer the right services? Can we show that our work really delivers impact?
• Curious about context. Who are our competitors, and what do they do? What choices do our clients have? How do we compare to benchmarks our clients might use, such as for effectiveness or price?
• Curious about money, where it comes from, and where it goes. Who are our customers, donors, or investors? Why do they buy, give, or invest? When does our money come in each year? Does it come in regularly or in lump sums?
• Curious about people. They talk with everyone who matters, including clients, staff, donors, and competitors. The best among them spend a few hours with the management team before they even sign on.
• Curious about the board, as a team. They attend board meetings even before joining, seek out the views of the board members who are different, and watch how people approach issues.

Once they have a grip on the heart of these issues, great board members look around and take their brain for a walk. Instead of visiting a program site as a board member or donor, for example, they might volunteer. Instead of sticking to their comfort zone of expertise, they venture out and learn.

Why bother? Because there are both personal and professional rewards. We can attest to this, and we want others to have the same experience. We’ve enjoyed helping causes we care about, tackling issues that infuriate us, and meeting amazing people we never would have met if we hadn’t joined nonprofit boards. We’ve served with people from Harvard and people from the school of hard knocks. We’ve learned more about handling conflict from a trustee who spent time in prison than we have from years of well-meaning workshops and development training. And we’ve learned a lot more about leadership in and around nonprofit boardrooms than we ever did in business.

Serving on a nonprofit board is immensely rewarding, and everyone should consider doing it. But the rewards come only to those who participate fully and use all they’ve got to further the missions they really believe in.

 

Daniela Barone Soares is chair of Muove Brasil, CEO at Granito & Capital, (@Granito_Group) non-executive director of Halma Plc and Evora S.A. Former CEO of Impetus-PEF, chair of Impact Readiness – G8 Social Impact Investing and founding trustee of the Education Endowment Foundation.

Nonprofit Board Sustainability Strategy #NonprofitBoards

 "As long as we have a contract with the state, we will be vulnerable".

Remember the 3-legged stool paradigm: nonprofits fill the void between what business doesn't have a market incentive to do and where the government doesn't have a public mandate?

So, what about when nonprofits sustain mission by taking-on what government does have a public mandate?  As is being experienced in many communities and multiple states throughout the US and is underscored by the following Chicago Tribune article, maybe this isn't proving such a great sustainability strategy either.  Simply put, if the greater portion of a nonprofit's revenues come from government, sustainability will be threatened.  But what to do?  Clearly, monies for services must be sought from the "other" sources of revenue: individuals (annual giving and major gifts); events; foundations and corporations; endowment earnings; and, yes, revenue generating activities.  And, of course, government can and should be a source when the opportunity arises but balancing this source with other sources must be the first priority.  Again, a strategy that places all expectations on government financing - not so good.

Nonprofits wait for state money, remain wary of future funding: 'We can't just flip a switch'

(Mark Kodiak Ukena / Pioneer Press)

Genevieve Bookwalter Contact Reporter Pioneer Press

 

Earlier this year, social service provider CJE Senior Life laid off nearly 90 people and shuttered a program aimed at helping some seniors preserve their independence – all due to the state not having a budget to disburse funding.

YWCA Evanston/North Shore CEO Karen Singer, center, said funding issues remain despite the state's passing of a budget.

 

"We can't just flip a switch," Prohov said. "We laid off all our staff."

Illinois got a budget in July after going 736 days without one.

Earlier this year, social service provider CJE Senior Life laid off nearly 90 people and shuttered a program aimed at helping some seniors preserve their independence – all due to the state not having a budget to disburse funding.

But now that Illinois has a spending plan in place, Laura Prohov, vice president of community services at the non-profit a

 

Republican Gov. Bruce Rauner vetoed the Democrat-backed spending plan that included an income tax increase, but the Legislature voted successfully July 6 to override his veto.

For the last two years, some social service agencies had decried not having an appropriation from Springfield and, as a result, not getting money they had, over the years, used to provide their services.

State funds covered about 82 percent of the $2 million Personal Care Program that CJE offered up until earlier this year, Prohov said.

As of March 30, however, all of the workers in that 22-year-old program were laid off and it was closed. The reason, administrators said, was a lack of funds after state money promised to them had not been paid for more than a year.

 

"This was a heartbreaking decision for us, to close this program," she said. "It was a great, great program."

CJE Senior Life provides "support, guidance and resources" to older adults, including assisted living, home-delivered meals, wellness activities and support groups, among other offerings, officials said.

The Personal Care Program at CJE Senior Life is just one example of the dilemma facing many nonprofits locally and statewide: a backlog of overdue payments, already laid-off staff and questionable confidence that money from the state will come through on time in the future.

"We're certainly better off with a budget than without," said Jack Kaplan, director of public policy and advocacy for United Way of Metropolitan Chicago. But "there's a lot of questions."

United Way acts as an umbrella organization that supports a number of different social service organizations and providers around the greater Chicago area.

Kaplan said United Way members are wondering when the state will reimburse them for bills that had to be paid on credit while waiting for the budget impasse to be resolved.

Others are wondering if it's worth continuing to contract with the state to provide future services.

"It's not as if you flip on a switch and things go back to pre-budget impasse normal," Kaplan said.

Many, like CJE Senior Services, have laid off the staff needed to provide services the state might be requesting. Those employees, Kaplan said, require time, training and money to replace.

There's a "problem solving effort to rebuild what was decimated in this process over the last couple years," Kaplan said.

At the YWCA Evanston/North Shore, president and CEO Karen Singer said that longtime community nonprofit faces similar challenges.

YWCA administrators laid off five staff members, Singer said, and "our line of credit at the bank was maxed out."

"I have not worried about meeting payroll for the past eight or nine years, and this (summer) was a struggle to get through," Singer said.

Singer expects the state to make whole the money owed to the YWCA by the end of August, she said. Still, she has reservations about doing business with Springfield going forward. She does not expect to hire back or replace the five employees who lost their jobs, although one might return part-time.

The YWCA does have a contract with the state of Illinois for fiscal year 2018, Singer said, but "I'm anxious that will be honored."

YWCA staff now is looking to build other sources of revenue that will leave the longtime nonprofit less dependent on the state for money. But that will take time.

"We're still vulnerable," Singer said. "As long as we have a contract with the state we'll be vulnerable."

[email protected]

Nonprofit Board Mission Drift #NonprofitBoards

Mission drift: when a nonprofit goes off on a programmatic path that is inconsistent with its mission (my definition).  

So, over the last several months I have been reasonably restrained with my criticisms of the Boy Scouts USA.  They did after all reduce their ardent stance on gay scout leaders (not allowed) permitting locals to make their own decision.  This is not in my opinion a progressive action but it's not taking a step backwards either.  I am wondering of course whether the Scouts Board will be more inclined to reverse this decision given current actions at the US national government level but I am holding my breadth that at least the scouts have a moral compass that tries to point true north.

Meanwhile, the Scouts are exploring their options on another front (who would have thought the Boy Scouts would have challenges with recruitment)?  They are looking at expanding their customer base by recruiting girls.  What you say?  Won't they minimally have to change their name if not their core mission?  

Well the Girl Scouts aren't going to wait and have taken the first step to say, hey, that's our customer, back off!    But would  a partnership that enables both organizations to identify some opportunities to benefit each organization's customers not be possible?  That is of course a next step for exploration.

From the Washington Post:

Scout wars: Girl Scouts accuse Boy Scouts of recruiting girls to increase membership

By Rachel Chason August 24 at 4:50 AM 

A member of the Girl Scouts of Central Maryland wears a vest with badges. (Patrick Semansky/AP)

Long plagued by declining membership, the Boy Scouts are considering a campaign to recruit in a previously untapped market: girls.

The Girl Scouts aren’t having it.

A feud between the two largest scouting organizations broke into the open Tuesday when the president of Girl Scouts of the USA called the Boy Scouts’ “covert campaign” to recruit girls “reckless” and “unsettling” in a letter obtained by BuzzFeed News. A Girl Scouts spokesman confirmed the letter in an email to The Washington Post.

“We were disappointed in the lack of transparency as we learned that you are surreptitiously testing the appeal of a girls’ offering to millennial parents,” Girl Scouts President Kathy Hopinkah Hannan wrote in her letter to Boy Scouts President Randall Stephenson. “Furthermore, it is inherently dishonest to claim to be a single gender organization while simultaneously endeavoring upon a co-ed model.”

She said the Boy Scouts’ “well documented” declining membership — its numbers have dwindled by a third since 2000, to just more than 2 million as of 2016 — is behind its push to include girls.

The Boy Scouts said in a statement to The Washington Post that they are considering including girls in their ranks not to boost their numbers but in response to requests from families who want their daughters to be a part of the same organization as their sons.

“The Boy Scouts of America believes in the benefit of single-gender programs,” said the statement from the Boy Scouts’ director of national communications, Effie Delimarkos. “But in evaluating the possibility of serving the whole family, we’ve been having conversations with our members and volunteers to see how to make Scouting accessible for families.”

A Boy Scout wears an Eagle Scout neckerchief (AP)

No final decision on whether to include girls has been made, she said.

The Girl Scouts spokesman, explaining the letter, said the organization “believes in maintaining an open and honest dialogue with other organizations in the youth serving space. … To that end we sent a professional letter” to the Boy Scouts, and look forward to “working out those issues with them in a mutually satisfactory manner.”

Girl Scouts’ membership has also taken a hit in recent years, falling from its peak of more than 3.8 million, including adult volunteers, in 2003 to 2.8 million in 2014. The Boy Scouts currently have about 3.2 million members, including adult volunteers.

Some women outside the Girl Scouts have actively lobbied the Boy Scouts to include girls in its ranks. In February, after the 107-year-old Boy Scouts announced it would admit transgender children in its scouting programs, the National Organization for Women called on the group to “honor its decree to help all children by permitting girls to gain full membership.”

“Women can now hold all combat roles in the military, and women have broken many glass ceilings at the top levels of government, business, academia and entertainment,” said NOW President Terry O’Neill. “It’s long past due that girls have equal opportunities in Scouting.”

One New York teen leading the push for the Boy Scouts to include girls as official members is Sydney Ireland, who has been an unofficial member of her brother’s troop in Manhattan for several years but is unable to earn a merit badge to begin the process of becoming an Eagle Scout because she is a girl. With her father, Ireland has become a leader in the national push to allow girls to join the Boy Scout ranks, appearing in a video with more than 3 million views and launching a Change.org petition with more than 8,400 supporters.

“I know I could rise through the ranks and become an Eagle Scout alongside the best of the boys — all I need is the opportunity,” Ireland wrote on Change.org.

But the “single-gender expertise” of Girl Scouts’ leaders has inherent value, the organization’s president argued in her letter.

“Girl Scouts believes in meeting the needs of America’s youth through single gender programming by creating a safe place for girls to thrive and learn,” Hopinkah Hannan wrote. “Over the last century, GSUSA has adapted to the changing environment, always prioritizing the health, safety and well-being of girls. For BSA to explore a program for girls without such priorities is reckless.”

The Boy Scouts organization — which was launched into the national spotlight during President Trump’s controversial speech at its jamboree celebration — should focus its efforts on recruiting all boys, including black and Latino youth, instead of girls, Hopinkah Hannan said.

Clarification: This article was updated to include the total number of Boy Scout members, including adults. 

Nonprofit Outcomes Over Politics #NonprofitBoards

The three-legged stool paradigm makes it relatively clear: government spends its resources to address what the public wants/needs somewhere in the realm of "lowest common denominator (e.g. public health, roads); business is all about generating wealth responding to market demand; and nonprofits fill the void where government doesn't necessarily have the demand and there isn't enough market incentive for business.  But for sure, government and nonprofits join hands when government believes it can get better results by contracting with nonprofits than doing a given task itself.

But public mandate and political interests/values sometime influence which nonprofits are called upon to fulfill a public mandate.  For example, in Texas, recognizing the role to address maternal and child health needs, contracts have been redirected from Planned Parenthood to an anti-abortion group.  Such political redirecting does not however mean that government cannot be accountable and in-turn, that the nonprofit now contracted for services cannot be equally accountable.  

As the following AP article indicates, in today's environment, government still must hold its contractors responsible for results. Perhaps this reality offers a consolation in times when "values" often appear to rank as a higher criteria for government decisions.  I would offer also that in their pursuit of mission, nonprofits exercise choice in how they will financially support their work.  Values matter in these decisions as well (e.g. "tainted money") and nonprofit boards should consistently challenge a strategy that relies on the government (and its priorities and values) over alternative sources.

AUSTIN, Texas (AP) — An anti-abortion group awarded nearly $7 million to boost women’s health and family planning after the state cut off Planned Parenthood and other abortion providers is falling short and will receive far less money as a result, Texas officials said Monday.

The decision comes a year after Texas hired the Heidi Group to help strengthen small clinics that specialize in women’s health like Planned Parenthood but don’t offer abortions. In March, The Associated Press found the Heidi Group had little to show for its work and had not performed promised outreach.

The evangelical nonprofit started in the 1990s and is best known for promoting alternatives to abortion.

More than $5 million in taxpayer funds pledged to the Heidi Group was for family planning services. But the small nonprofit hasn’t met their goals and now plans to serve only a fifth of the nearly 18,000 women originally projected, said Carrie Williams, a spokeswoman for the Texas Health and Human Services Commission.

As a result, the organization will now instead receive less than $1 million for family planning. Williams said contract delays contributed to goals not being met.

“They didn’t reach their own targets during this first year of ramp up. We’re adjusting the amounts to make sure we are maximizing services for women through our contractors,” Williams said in an email.

The Heidi Group is led by Carol Everett, a prominent anti-abortion activist and influential conservative force in the Texas Legislature. She didn’t immediately respond to messages left Monday evening.

Everett has previously said some clinics weren’t cooperating with outreach despite her best efforts and that advertising she planned had been stalled by delays in state funding. Earlier this year, Texas health officials acknowledged to the AP there had been early struggles under a separate $1.6 million contract with the Heidi Group.

That smaller contract was for the organization to help boost a state women’s health program that provides low-cost breast exams, contraception and cancer screening. Planned Parenthood and other abortion providers are banned from participating after Republicans lawmakers cut off their funding in 2011.

Planned Parenthood and its supporters say the struggles show the risks of relying on unproven providers to serve low-income women. Everett said in March she hoped to serve as many as 70,000 women under the women’s health program. Williams said the actual number of women served was not yet available.

Nonprofit Board Responsibilities: The Basics #NonprofitBoards

What are the basic responsibilities for being a nonprofit board member?  Check-out this Nonprofit Quarterly article.

Nonprofit Board Service Benefits #NonprofitBoards

In this space I generally talk about the trials and tribulations of nonprofit board service.  Today we will talk about the benefit of being a nonprofit board member and based on the following article there really are some great benefits beyond of course, putting into reality your Theory of Change and passion for mission.

 

How Being on a Nonprofit Board Can Be the Unexpected Career Boost You Need

Alli Hoff Kosik  Aug 21, 2017

  

In the years before life was dominated by work and a social calendar was more than just a seemingly constant rotation of routine happy hours and lunch dates, it was a whole lot easier to be a joiner. Do you remember those days? When it was totally cool to try out ballet or softball just because it sounded fun? The days when weekly Girl Scout meetings were a great excuse to spend time with new friends and to work on crafts and activities that you would never have tried otherwise? Outside of snow days and macaroni and cheese, the natural inclination we had as kids to experience new things might be what we miss most about childhood.

While there are certainly fewer opportunities to be a joiner in adulthood, not all hope is lost. Nonprofit organizations are great places to give your time and talent, and they can be super fun too. You can find these opportunities through networking or sites like BoardnetUSA.org or LinkedIn. Taking on leadership roles within these kinds of groups can also really pay off career-wise. Michele Romanow — serial entrepreneur and star of Canadian TV show Dragons’ Den — joined her first nonprofit board six years ago, and has since served on the board of four organizations. We spoke to Romanow and a team of active millennial board leaders to learn more about how this brand of joining can help you grow professionally. Here are six experiences you’ll have on a nonprofit board that will enhance your performance at your day job.

1. You’ll expand your circle. It often feels like networking is the name of the game in allaspects of life (after all, how many times have you heard the phrase, “it’s all about who you know?”), so why not give yourself a leg up by opting into an elective community of passionate, proactive people who share your interests and goals? The contacts you make as a young board member can certainly pay off with job offers, mentorship, and more. “From fellow board members to the organization’s leadership, staff, and donors, serving on a board helps you build a valuable network that can lead to career growth and investment opportunities — and even long-lasting friendships,” Romanow says.

Drew Gannon, who serves on the board of Teach for America’s New York Alumni Association, echoes Romanow’s thoughts, adding that her involvement on the board over the last year has also improved her networking chops. “I have developed some serious skills in finding, contacting, and connecting with people,” she says. “Having the skills to navigate diverse conversations and still connect with [TFA alumni] has been a new challenge. I’ve also developed the mindset that networking isn’t horrible. In fact, it’s pretty awesome!”

2. You’ll inspire change. Are you tired of feeling like your reputation as a millennial has preceded you? Are you so over comments about how 20- and 30-somethings just can’t keep their hands off their devices? Pursuing involvement on a nonprofit board may be the perfect opportunity to show just how useful your millennial mindset can be within an organization. “Since many nonprofits have small staffs and low budgets, they’ve likely continued to do things the same way for quite some time and may not be utilizing technology to help streamline and simplify day-to-day processes,” Romanow says. “As a young professional on a nonprofit board, you can introduce new ideas that spark positive change and forward motion for an organization you love.”

3. You’ll learn about yourself. Every time you step out of your comfort zone to meet new people and try new things, you’re creating an opportunity (all on your own!) for personal growth — and as you become a more dynamic and well-rounded individual, you’ll become that much more powerful and creative in your professional life. Learning more about your strengths (and, yes, even your weaknesses) will also be a great asset for future job searches because you’ll be better prepared to speak openly to a potential new boss about what you can bring to a workplace and what you still need to learn.

Alyson Weiss, who was elected to the board of directors for the Young Professionals Network of Boston in January 2016, has experienced this personal growth, along with its professional benefits. “I have learned a lot about myself, my strengths and growth areas as a leader, and how to adjust my communication and facilitation style for different people and scenarios,” she says. “I have also become much more comfortable diving into a project outside of my comfort zone.” Weiss notes that she’s been able to apply all of these lessons to her day job, working as an alumni relations officer at Tufts University.

4. You’ll feel more fulfilled in your life. The best way to break out of a personal or professional rut is to shake up your routine. Putting yourself out there by volunteering for a nonprofit — and then turning up the heat by committing to serve on the board — is an ideal approach to challenging the norm. “Joining a nonprofit board is a great way to give back and feel fulfilled in your professional life,” Romanow says. “By serving on the board of an organization that promotes a cause you care about, you’ll be able to channel your own creative energy into initiatives that give back to your community.” You’ll be able to take that creative energy and sense of purpose and put it to even more good use at your nine-to-five.

5. You’ll beef up your resume. With your college days behind you, you may find yourself wondering how you can develop the professional skills that you need to advance your career. Look no further than joining a board. Your duties will, of course, offer great real-world leadership experience, but Romanow also notes that your fellow board members — who will likely come from multiple industries, skill sets, and perspectives — can offer valuable mentorship and advice too.

Brandi George, who was elected to the board of northeastern Pennsylvania’s Gaslight Theatre Company in 2012, says her position has given her the chance to develop strong marketing skills. She’s also learned to confidently embrace a diverse range of tasks. Everything from “overseeing marketing efforts, redesigning and maintaining our website, operating our social media, writing press releases, coordinating interviews and publicity, and occasionally doing graphic design work” has fallen within George’s jurisdiction at some point over the last five years. “There’s so much I learn in both my role as a board member and as a working professional that influences the other,” she says. “If you join [a board] just to have it on your resume, you might as well dig in and really expand your skill set or tackle unfamiliar territory.”

6. You’ll become a better leader. Outside the typical hierarchies of an office environment, you’ll be surprised how much leeway you’ll have to grow as a leader. “One of my favorite parts of a board meeting is the incredible bird’s-eye view you get into a totally different leadership team,” Romanow says. “This always forces me to reflect on my own leadership and take new ideas back to my own company.”

Gannon, Weiss, and George all listed leadership skills among the most significant lessons learned as part of their respective boards. More specifically, Gannon cites her experiences speaking in front of hundreds of Teach for America alumni. “This has helped me in my current job, where I speak with authority to rooms full of principals and deans who once coached me,” she says. “And the confidence I have in myself and my ideas will be invaluable in the future.”

How has being on a nonprofit board — or getting involved with a nonprofit in some other way — helped you at work? Tweet us @BritandCo!

(Photo via Getty)

 

Alli Hoff Kosik

Alli Hoff Kosik is a freelance writer who is passionate about reading, running, rainbow sprinkles, her lipstick collection, watching embarrassing reality TV and drinking pink wine. She lives in Brooklyn with her husband and (in her dreams, at least) three golden retriever puppies. You can find her blogging at Finding Plan A .

Nonprofit Board Duty of Care and Ignorance #NonprofitBoards

I have no working knowledge of Shepherd University, a nonprofit school in California. But the following Wall Street Journal article about the school's bankruptcy filing caught my attention because some part of its challenges has to do with a board that appears to be failing in its fiduciary duties of care and obedience.  In particular, there appears to be little or no strategy to address mounting debts.  And, there has been at least one sizable loan the school made to another institution (who's pastor serves on this school's board) all the while facing its own financial challenges.  This is a board either clearly not paying attention, not receiving the best and most complete information from its staff, or choosing, for whatever reasons, to not act prudently (doing what other boards would do facing similar situations - the standard for rating fiduciary performance).  This school serves as a helpful example to other boards of how not to behave.

 

Shepherd University in California Files for Bankruptcy

The private Christian college has lost money for three years running

 

 

By 

Katy Stech

Aug. 15, 2017 5:02 p.m. ET

0 COMMENTS

 

Los Angeles’s Shepherd University, which offers classes in theology, music and nursing, filed for bankruptcy protection on Monday with scant details about its financial challenges.

The nonprofit school’s 16-page bankruptcy petition provides few financial details and doesn’t explain what consequences the filing may have on its students. The school has about 280 students and 87 faculty members, according to a report that accrediting agency WASC Senior College and University Commission released after visiting Shepherd’s campus in March.

Founded in 1999, the Christian school offers undergraduate and advanced degrees. Tuition cost between $1,800 and $19,968.75 a semester for the 2014-2015 academic year, depending on course load and degree type, according to Shepherd’s website. The school isn’t affiliated with the state-funded Shepherd University in Shepherdstown, W.Va.

 Shepherd’s operations lost money during the most recent three fiscal years as student payments and donation pledges were slow to trickle in, according to the commission’s report. Nearly 40% of the school’s revenue comes from donations, the report said.

Last month, commission officials warned the school, which has asked to be formally accredited, that it might not get that accreditation approval.

Shepherd’s bankruptcy lawyer declined to comment about the commission’s warning or about the college’s overall survival strategy. School officials couldn't be reached for comment.

Companies and nonprofits that file for chapter 11 protection typically plan to use the process to repay debts and continue operating after emerging with a fresh financial start. Any repayment plan for Shepherd University will need approval from Judge Sheri Bluebond of the U.S. Bankruptcy Court in Los Angeles.

Documents posted on the accrediting agency’s website indicate that its officials may visit Shepherd University’s campus again next spring to assess the university’s progress.

During the March visit, commission officials said they were concerned about a conflict of interest when they discovered that the school lent more than $2 million to Na Sung Yang Moon Church, whose pastor served on its board of directors. In its response within the report, Shepherd University officials said the loan was for missionary work and that it had been fully repaid.

Commission officials also found that an affiliated institution in Italy was promoting a diploma available from the Los Angeles school for 1,100 euros. Shepherd University officials denied knowing about the Italian school’s degree promotion, according to the report.

“The team is concerned that the administration seems to lack the knowledge required to efficiently and legally conduct business as a university in the state of California,” the report stated in a section about the school’s financial health. “On more than a few occasions, ignorance was their only defense.”

Write to Katy Stech at [email protected]