There is wisdom to be learned from those with lived board experience. Such was the basis for bringing together reps from a number of nonprofits for a panel to discuss their experiences and offer their insights. I'm posting the article that chronicled this discussion and have, of course, inserted my own thoughts (in lilac) on some of the statements.
From The Pilot (North Carolina):
Rooted in Service Nonprofit Board Members Provide Foundation for Work
It’s been said that Moore County has more nonprofits per capita than any other county in North Carolina. Name the need or a cause and you’ll probably find a local organization that is trying to make a positive difference.
To maintain their tax-exempt status with the IRS, every nonprofit is required to have a board of directors. Typically smaller organizations have a volunteer working board while a larger nonprofit board serves in more of an advisory role.
Sandhills Community College recently sponsored a free discussion at the Sunrise Theater in downtown Southern Pines for current and prospective nonprofit board members. Panelists included Carolina Eddy, development director of St. Joseph of the Pines; Amie Fraley, executive director of Habitat for Humanity of the NC Sandhills; Paul Murphy, pastor of Trinity AME Zion Church and Southern Pines councilman; Craig Pryor, past board chair of Sunrise Preservation Group; and David Woronoff, publisher of The Pilot and SCC Board of Trustees member. SCC president John Dempsey moderatorated the discussion.
“Board membership is a tremendous way to be involved in the betterment of our community. But with that honor and privilege of service comes some responsibilities,” Dempsey said.
He emphasized one of the fundamental roles for a board is to hire — and occasionally fire — the organization’s CEO. In turn it is the CEO’s responsibility to develop the vision for the organization to follow. I would pose that 'yes' to hire but equally important, set clear annual goals, conduct an annual performance assessment, and after every board meeting, take time for an executive session to "check-in" on how folks think all is coming along).
For smaller organizations without a CEO, it is essential for the board to pick up much of the day-to-day operational demands in addition to providing fiduciary support and controls. This reality is not about size but about stage of development. It's true that smaller "resourced" organizations will have additional if not different demands on members but # of resources is not the single determinant of how much non-governance engagement will be conducted by board members.
“When you join a board, it is sort of like joining a family,” said Woronoff, noting they sometimes can be dysfunctional. “All boards that are really effective have two things in common: every person on the board has bought-in on the mission and, secondly, they all believe in the collective vision for the organization.” This MAY be true, that is what is in common, but this reality of newbies speaks more importantly to the responsibility by the members to fully "on-board" newbies and ensure a smooth introduction to the culture, norms, policies and procedures and expectations.
Murphy agreed, and said while some boards have term limits he believes it is important to have flexibility, particularly with smaller nonprofits or in church leadership positions. Not 100% certain what was meant here and why smaller nonprofits or church leadership positions should be singled out - I would pose that limits should be a universal rule.
“Getting buy-in on the mission is the best common denominator,” he said. “But sometimes you have that one person who can keep the vision alive for the entire board.” Uh, if only 1 is keeping it alive, there's a problem. That one and all need to ensure that one and all are on the same ship together.
Fraley said the board can also provide a unique role of support for the CEO, especially when it comes to larger nonprofits where there may be different committees and places where service is ongoing. Uh yes and no?
“I favor term limits because the theory is you want to grow the pool of people involved in your organization. If you only have the one group of cool kids then no one can come. I think it is a healthy thing to have new board members,” she said. Absolutely!
Pryor said it would not be wise for an organization to have a “wholesale turnover” of board membership, but agreed with Fraley that some portion of new blood is a good thing. Yes, this is why terms are staggered to preserve institutional memory and ensure newbies are connected to or at least understand that history..
“It’s the same as bringing in a new CEO. It gives you the opportunity for a new set of strengths,” he said.
Dempsey noted one key difference between a CEO and the organization’s board is how they approach decision-making. The CEO is responsible for day-to-day management and by necessity focuses on short term goals; whereas the board has more latitude to look at long-term sustainability of the mission. Not just latitude but responsibility.
“You (board members) are responsible for the fiscal sanity of the organization. You need to make sure the organization can pay its light bill. You have to be a bit of a watchdog,” he said. Sure.
Pryor said one of the reasons that Sunrise Theater has succeeded is because the finances were overseen by a capable treasurer. But ALL members bear this responsibility.
“A strong treasurer is invaluable for keeping your organization out of difficult situations. They are not easy to find but they are invaluable,” he said. Perhaps, but those who would be treasurers with little experience can be trained.
Importantly, serving on a board usually involves some level of fiscal responsibility to the organization.
“There are many ways to serve a community organization as a volunteer. But when you accept a board role, you accept responsibility to help that organization raise private philanthropic donations,” Dempsey said. “Boards bear the vast brunt of fundraising or the organization cannot operate.” IF MEMBERS AGREE!
Eddy agreed and said it was important for an organization to have 100 percent participation in giving from its board, and she encourages her trustees to give “at a level that is meaningful to them.” This is certainly what funders state.
The panel also encouraged prospective board members to check the organization’s indemnity insurance to ensure they will be protected from liability, and to seek out an orientation program to acquaint themselves with their new role and the nonprofit’s mission and goals. Again, on-boarding.
“It takes awhile to understand the nuance of each board. If you are new, you should immerse yourself in that organization. It is incumbent that board members bring energy and enthusiasm to support the cause,” said Woronoff. “And this is volunteer work, so it should be fun too.” Again, starting with on-boarding. Newbies should not be left on their own to have to immerse. Give them a buddy/mentor. Take time at every meeting for a mission moment. Orient, orient, orient......
Contact Laura Douglass at (910) 693-2474 or [email protected].