I just received the following email from the National Development Institute (NDI) aka Jimmy LaRose. The missive weaves a tale about how nonprofit boards are doing "it" all wrong. NDI proposes that basically, boards get "it" right if they would just turn everything over to the CEO and get out of the way. Boards should be paid for their function and pretty much do what the CEO says is the correct way.
I do not agree nor approve but you should be the judge. Me, I have this old-fashioned concept that nonprofit boards are owners (surrogate) accountable to the public and have every interest in every thing NDI says should not be their interest PLUS what NDI says should be their interest. You be the judge. If you are loving what NDI has to say, feel free to join them and be part of their movmement
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Here's a list of five NO-NOs when working with a nonprofit board:
1. "Let's have an annual retreat" (why waste a good weekend?)
2. "Let's hire someone to do board training" (why am I training my bosses?)
3. "Let's get our members to fund raise" (it's never worked...it never will)
4. "Let's recruit more board members" (why add to the crazy-making?)
5. "Let's vote on a having a feasibility study" (consultants are lying to you.)
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Dear Colleagues In Service,
I'm sharing this message with you this morning to affirm what you already know. Your Board of Directors is not your real problem nor is it your solution. When it's all said and done, there's one thing all boards have in common...THEY DO NOT FUNCTION. There's a better way. Allow me to explain.
-Boardsmanship IS NOT Governance
-Boardsmanship IS NOT Visioning
-Boardsmanship IS NOT Policy-Making
-Boardsmanship IS NOT Volunteerism
-Boardsmanship IS NOT Management
Boardsmanship is not Governance: Don’t kid yourselves. UNPAID VOLUNTEER BOARD MEMBERS DON'T GOVERN. Actual governance occurs when a person (with a full-time salary) supported by various paid staff (the formation of a government) is empowered to perform the daily tasks of decision-making and oversight. Strong CEOs GOVERN!
Boardsmanship is not Visioning: VISION is the way MISSION is achieved and is never the responsibility of the board because the board isn’t being paid to accomplish it. STRONG CEOs DETERMINE VISION. (I’ll agree that board members hold their compensated leader accountable to achieve MISSION.) Here's what you do. Hire a strong CEO who can be trusted to design a HEROIC VISION OF SCALE that accomplishes mission in ways you never dreamed possible. Believe me, strong CEOs are already doing it their way even if they're forced to label it “BOARD VISION.”
Boardsmanship is not Policy-Making: Hire a CEO whose depth of experience and formal education has already equipped them as a management expert. The right CEO has been properly trained to oversee the creation of policies that work. Board Members never write policy anyway. Someone else does the heavy-lifting and they rubber stamp it.
Boardsmanship is not Volunteerism: Eliminate the special events committee. Eliminate the fundraising committee. Eliminate the public relations committee. Eliminate the strategic planning committee. (Here’s a good rule of thumb - remove everything from your by-laws that’s not related to IRS compliance.) Re-assemble these groups as volunteers (non-board members) who serve you directly. For example, a group of social workers is assembled to serve the program director, or a campaign cabinet comprised of community volunteers is built to advance fundraising. You now have individuals in their sweet spots, who are no longer saddled with arcane tasks.
Boardsmanship is not Management: Board members have no authority over the day-to-day operations of a nonprofit UNLESS there’s a written directive recorded in board meeting minutes with a motion, second
and full vote. Members cannot unilaterally exercise power. Nor can committees. Conversely, board members actually need to receive permission from the CEO if they intend to act on behalf of the nonprofit in a manner that could affect daily operations.
By the way, I've figured out this whole BOARD THING! Here’s how it works:
Great boards do TWO things:
They provide...ADVICE & ACCOUNTABILITY
The STRONG CEO is named chair of the nominations committee and fills these SIX POSITIONS (yes, you only need six [plus]):
1. Business Expert (Chair) Entrepreneur
2. Program Expert (Secretary) Specific
3. Finance Expert (Treasurer) Accountant
4. Legal Expert (Member) Lawyer
5. Communications Expert (Member) PR/Marketer
6. Nonprofit Expert (Member) Consultant
THAT’S IT! (add other experts as needed eg. personnel, etc.) However, don’t forget, working group theory states that any “working group” with more than seven people is no longer a group that works!
Here are their ten clear-cut ADVICE & ACCOUNTABILITY functions:
1. Comply with IRS Regulations
2. Hire strong Chief Executive Officer
3. Approve Meeting Agenda
4. Approve and Amend By-Laws
5. Choose and Review Independent Financial Audit (annual)
6. Choose and Review Independent Program Audit (annual)
7. Evaluate strong Chief Executive Officer
8. Attend Three Meetings per Year with Recorded Minutes
9. Support the CEOs Vision (not the boards vision)
10. Provide CEO their expert advice
Pamela Ballard, CNC
National Development Institute
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