Nonprofit Board Crisis

A blog to consider #NonprofitBoards

Mark Winne, in his blog that mostly covers food and hunger but also covers nonprofit boards interviewed me and included pieces of his interview in this more recent blog.

I liked what Mark had to say about his board experience and equally liked what he attributed to me saying. :)

Chair To Board: Come In Please #NonprofitBoards

I've got to say that board's and board chairs can't hear the following information enough (mostly because I don't think they listen).  Take it as you will but here's pretty much the advice from Dr. Fram on managing a board that doesn't listen or learn.

 

HOW CAN A NONPROFIT BOARD CHAIR FIX A DYSFUNCTIONAL BOARD? 

 

How Can a Nonprofit Board Chair Fix a Dysfunctional Board? 

By: Eugene Fram.     Free Digital Image

There are times when the governing body of any organization may appear to be “broken.” The board members, whether for profit or nonprofit, may be polarized—progress is stunted – apathy and confusion replace purpose and efficiency.

A listing of ways to resuscitate dysfunctional business firms prompted me to expand on actions for nonprofits in similar condition. When a nonprofit is in trouble, any chair, who is aware of his/ her leadership responsibilities, should aspire to be the “fixer “of the fractured board. But there is just so much he/s can do. Some failures have deep endemic roots such as outdated structure, personality conflicts etc. The following actions are within the chair’s capability, and they can be useful in repairing board disruption.

Board Meetings By Design:

• Start with a plan. The chair and CEO should meet to map out the agenda using a 60-90 minute parameter to examine and discuss imminent issues.

• Send meeting agendas to the directors at least a week before the scheduled meeting. Keep the notices reader friendly: operational details should be minimal—avoid boilerplate lists. A consent agenda can be used for some motions, as can e-mail votes on routine items, when legally acceptable.

• Promote attendance. The chair should make certain that all electronic venues (e.g. board room speaker receivers) are available for board members who are unable to attend.

• Staff personnel are frequently asked to make presentations at board meetings regarding their activities. Don’t let these get out of hand—give them advance notice of their time limit. Ask the CEO to do a detailed preview with the presenter.

• Make certain that policy and strategic matters are handled with thought and dispatch. In the event that the board chair is on overload with work or family issues, appoint a Lead Director to assist.  https://www.icnl.org/resources/research/ijnl/lead-directors-in-public-companies-2

The Chair Mentors and Monitors Directors:

• The board chair must be continually attuned to his/her directors, both as individuals and as a team working collaboratively for the same goals. He/she should definitively have a presence in the board recruiting process. Given the frequent rotation of board members, the board chair is best equipped to know where the prospective gaps will be and what field of candidates should be approached. Ensure that at least a few of the nominees is knowledgeable in the field in which the mission has been established.

• An orientation for new board members should provide the context necessary for new members to begin their term of participation. It should have a time-compressed format that includes enough time for discussion and involvement.

• Board members need to know what will be expected of them during their service on the board. These responsibilities should be clearly documented and issued at the orientation. When a board member fails to attend meetings regularly, the chair usually has to initiate the action to notify the errant board member. Sometimes a board member may refuse to resign. There is little the board can do without creating internal conflict, arising from a division of board members who will support or veto such an action.

• With full agendas at monthly meetings, and committee meetings involving only one or two others, the board chair and CEO need to bring board members together in gatherings or social events at which they can interact informally.

• Ensure that there is a rigorous evaluation of the CEO and the organization. Nonprofit board members often look to the board chair to set the right tone in these deliberations. With a light or incomplete evaluation, board members may leave themselves open to personal liabilities or reputation losses. It is not unusual for a CEO to be rated as good or outstanding and subsequently be terminated when newly elected board brings higher standards to the process.

And finally—while it is said that the road to dysfunction can be “a slippery slope,” it is usually well marked with signposts of warning! The nonprofit board chair must lead with the above disciplined practices to help get the dysfunctional nonprofit back on track.

Is Sitting on Other Boards A Good Criteria? #NonprofitBoards

In today's press release NPR announced the selection of two very impressive folks as new board members.   According to the release, "The NPR Board of Directors is responsible for the governance of our 501(c)(3) nonprofit corporation. The Board sets the policies and overall direction for NPR management, monitors the performance of NPR, and provides financial oversight."

All good you say, so what's the problem?  My problem is certainly not with the caliber of these two new members.  As I noted and as the press release, reinforces, these folks are uber qualified for the job.  What is my problem is that these folks are pretty committed to other boards not to mention their full-time jobs.

"Ms. Alberti-Perez spent most of her career at Penguin Random House and currently serves on 2 non-profit boards and 3 corporate boards. Margaret Low serves on the board of the Greater Boston Chamber of Commerce. She is vice chair of the board of The Reporters Committee for Freedom of the Press and a board member of Wallace House Center for Journalists at the University of Michigan, home to the Knight-Wallace Journalism Fellowships.

I know about the adage that if you want to get something done call-on a busy person but really, just how many boards can one individual serve and not have competing demands (not necessarily conflicts of interest)?  And really, you mean to tell me there aren't almost equally talented individuals who aren't booked who can serve?  

Pardon me for my disbelief but I don't buy the story that a criteria for board service should include the number of boards you currently serve.

 

Not Illegal Does Not Mean Not Wrong #NonprofitBoards

Just because it's not "legally" wrong does not make an action ethically correct or even correct in the eyes of the public.  Thus the story about a vice mayor who used his position to solicit $ for his nonprofit.  Of course this effort is also a fine line between coercive action and quid-pro-quo action and, well, you name it.  Pretty much, this is unsavory behavior.  And this type of transaction even has a name: behested giving.

From the San Diego Union Tribune: 

La Mesa vice mayor, now running for state Assembly, solicited $700,000 in donations to his own nonprofit

Colin Parent, who is CEO of Circulate San Diego, says there is nothing untoward about the payments.

BY JEFF MCDONALD

MAY 7, 2023 5 AM PT

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Last month, La Mesa Vice Mayor Colin Parent signed a public disclosure acknowledging he solicited a $5,500 donation from a major developer to Circulate San Diego, the charity for which he serves as chief executive officer.

It was the 68th time in the last five years that Parent reported seeking cash contributions to his employer, according to records released by the La Mesa City Clerk’s Office at the request of The San Diego Union-Tribune.

Since April 2018, the La Mesa Democrat has disclosed almost $700,000 in what are called behested payments — donations to charities by companies and individuals that are made at the suggestion, or behest, of an elected or appointed official.  All of the contributions were directed to Circulate San Diego, which Parent has run for years.

The second-term council member, who announced last month that he is running for state Assembly, said there is nothing unusual about steering donations to his employer.

But political experts and good-government groups say the behested payments are questionable. For Parent as an elected official to ask donors for money to support an organization that he also manages raises the specter of conflicts of interest, they said.

 

“Even if everything is legal, the public perception is horrible,” said Sean McMorris of California Common Cause, a nonprofit group that promotes government transparency.

“As an elected official, when you’re involved in this kind of activity, where money is exchanged at an elected official’s request, the public has every right to question whether a public official’s loyalty is with that donor or with the public,” McMorris said of the solicited donations.

Unlike in larger cities such as San Diego, La Mesa council members serve only part-time. Oftentimes, elected officials from smaller cities also hold full-time jobs.

Parent collected about $30,000 in pay and benefits for his La Mesa City Council service in 2021, according to a public database maintained by Transparent California.

His day job as the Circulate San Diego CEO is more lucrative. The organization’s latest federal tax filing shows Parent was paid $141,000 in 2021, or about 14 percent of its annual revenue.

Parent, who is also a lawyer and has been a member of the state bar for 15 years, said he complies with all laws governing charitable contributions and public disclosures.

“California does require that donations that elected officials help solicit to a nonprofit be disclosed to the public through a behested form,” he said. “I carefully follow those requirements and file all the necessary behested forms.”

Circulate San Diego is a nonprofit that advocates for public transportation and what it calls sustainable growth. But it also, according to its website, operates as a “fee-for-service planning team” for public and private clients. It also develops public policy and advocates in favor of development projects that meet its standards for “smart growth.”

The La Mesa vice mayor says he has recused himself from voting on any issues that present direct conflicts between his work and fundraising for Circulate San Diego and his public service as an elected official.

Parent singled out his decision to abstain from voting on a partnership between the city and the San Diego Foundation to develop the Livable La Mesa plan, which was produced in 2019 by the city, the foundation, Circulate San Diego and other organizations.

Two years later, the San Diego Foundation gave Circulate San Diego a $50,000 donation.

Parent also said he avoids casting ballots on issues that affect people who work for him at the nonprofit.

“On several occasions, I have had employees at Circulate apply for appointments to boards and commissions in La Mesa,” he said. “I recused myself from any such decisions.”

But Parent has voted on matters that affect donors to the charity he runs.

Records show he voted in favor of granting San Diego Gas & Electric permission to develop a charging station for electric cars at MacArthur Park in 2021. The utility is the largest single donor to Circulate San Diego, contributing more than $180,000 over the past five years.

Parent also voted for a proposed city law governing electric scooters in 2019. State disclosures show he solicited at least $22,500 in donations from e-scooter operators like Bird and Lyft to his employer.

The vice mayor said he raised the issue of donations to Circulate San Diego with the California Fair Political Practices Commission, or FPPC, which enforces state campaign and fundraising rules.

He said he was told such scenarios are permitted.

“In California, donations to nonprofit employers of elected officials are not treated as income to those officials and do not trigger obligations for recusal,” Parent said.

Apparent violations

According to the FPPC, payments are considered “behested” if they are made at the request or solicitation of an elected official or with their cooperation.

Payments of $5,000 or more in a single calendar year are required to be publicly disclosed within 30 days.

Parent appears to have violated the 30-day reporting window dozens of times. His filings show 34 payments were disclosed after the reporting period elapsed.

In response, Parent said he is not always alerted to contributions to Circulate San Diego.

“Occasionally, internal processes at Circulate have not immediately flagged for me donations that required behested payments,” he said.

“Nevertheless, as soon as I became aware of donations to Circulate that required the filing of behested payment forms, those forms were immediately filed with the La Mesa City Clerk.”

The La Mesa councilman is not alone in seeking donations to favored causes. Behested payments in recent years have become a key fundraising device for elected officials across state and local governments.

Gov. Gavin Newsom reported more than $3 million in behested payments in 2018, his first year in the Governor’s Office. Since then, the amount of charitable contributions solicited by Newsom has totaled nearly $300 million, state records show.

Former San Diego Mayor Kevin Faulconer disclosed more than $4.5 million in behested payments during his administration, the Union-Tribune reported in 2020.

More than $1.5 million was directed to One San Diego, the tax-exempt entity that famously distributed backpacks and other school supplies to needy families but also provided resources to Faulconer.

“Through its work, One San Diego seeks to support the organization of the Mayor’s Office,” the charity’s mission statement said.

One San Diego dissolved weeks after Faulconer left city hall.

Former District Attorney Bonnie Dumanis solicited $50,000 in charitable contributions to an organization whose tax-exempt status was revoked by the Internal Revenue Service and that had never even registered with the state of California, the Union-Tribune reported in 2017.

The program manager for the charity, called Village of Promise Health Outreach, said the revocation and lack of state registration were due to oversights that she would correct. The organization’s then-volunteer manager was a retired District Attorney’s Office administrator.

Former Assemblywoman Lorena Gonzalez solicited tens of thousands of dollars in 2016 for the Three Wise Men Foundation, a charity formed by her then-boyfriend Nathan Fletcher.

The couple was married in 2017, and Fletcher was elected to the county Board of Supervisors the following year. He was re-elected in November but announced he would resign last month after being named in a civil lawsuit accusing him of sexual assault and harassment.

In Parent’s case, SDG&E has been the largest source of solicited donations to Circulate San Diego.

Rep. Scott Peters also has given at least $50,000 to the organization over the past five years — $10,000 at a time, state records show.

A top aide to the San Diego congressman said the donations came from personal funds and were made because Peters helped found the charity years ago.

Chief of Staff MaryAnne Pintar said the behested payments disclosed by Parent are wholly appropriate.

“Soliciting funds for the nonprofit he runs is part of the job, as it would be for anyone who runs a nonprofit,” she said. “So long as he is following all applicable disclosure and transparency rules, it is fine.”

Parent has also reported significant awards from developers like Sea Breeze Properties, Baldwin & Sons and Sudberry Properties, which Parent said gave $5,500 on April 10.

“I am very careful to avoid any decision as a public official that will have an impact on my employer Circulate San Diego, or any other source of income to me,” the La Mesa council member said.

Parent said the money he raises for Circulate San Diego does not directly affect the salary he collects from the nonprofit entity.

“Circulate San Diego is governed by an independent volunteer board of directors, which determines my compensation for the upcoming year on an annual basis,” he said.

‘Recognition and support’

Records show the charity dates back at least 2005, when the tax-exempt organization was called Walk San Diego. Its mission was to promote safe walking in neighborhoods generally vulnerable for pedestrians.

Walk San Diego merged with another local nonprofit called Move San Diego in 2014 to create what’s now called Circulate San Diego.

In addition to promoting safe transportation opportunities such as walking, biking and public transit, Circulate San Diego publishes policy papers and holds community education events.

It also markets “mobility certifications” to local developers at up to $15,000 each, and it helps them secure building permits through public testimony by Circulate San Diego staff before elected officials about the benefits of a particular project.

“The Circulate Mobility Certification provides recognition and support for transit-oriented, smart-growth projects in the San Diego region,” the Circulate San Diego website says.

A certification comes with a letter from the charity that a developer can present to elected officials considering a building permit and with permission to use the Circulate San Diego seal of approval on public communications.

Circulate San Diego staff also will agree to testify at public meetings on behalf of an applicant who received a mobility certification, the charity says.

“Additional services for certified projects can also be negotiated,” the website notes.

The public-policy and planning nonprofit stopped evaluating development projects in La Mesa for potential mobility certification after Parent joined the City Council, he said.

“Circulate adopted this practice to ensure there was no appearance of conflict between my role at Circulate and my role on the La Mesa City Council,” he said.

The organization does certify building plans in the city of San Diego, Parent said, adding that it follows that city’s ethics rules when it does.

He said the support that Circulate San Diego provides donors through certifications, seals and public testimony does not equate to lobbying because it is all done publicly.

“Circulate will only advocate on behalf of projects to decision makers in ‘noticed public meetings or hearings,’” he said. “Those types of communications are not treated as lobbying by the city of San Diego’s ethics code.”

 

While the Circulate San Diego mission has expanded notably since it first incorporated as Walk San Diego, so have its profile, revenue and political influence.

Eighteen years ago, Walk San Diego reported just $92,000 in annual revenue — almost all of it from grants and community donations.

In 2021, Circulate San Diego reported more than $1 million in revenue, with three out of every four dollars coming from program services like the paid certifications.

Clint Daniels, the Circulate San Diego board chair, said the organization’s success shows that its expanded mission resonates with clients, contributors and community leaders.

“We advocate for better policy choices when it comes to smart growth, biking and pedestrian safety,” he said. “Those are things that our donors, by giving us money, believe in as well.”

Daniels said he sees no conflict between Parent’s behested payments and his position as CEO.

“That (disclosure) is what the state requires him to do,” he said. “I don’t know that there’s anything untoward there; it’s just what the state requires him to do.”

But others disagree. Among them is Carl Luna, the University of San Diego political science professor who also directs the Institute for Civil Civic Engagement.

Luna called behested payments part of a “wink-wink, nod-nod culture” in which politicians and donors pretend the money isn’t donated for political benefit.

He said they should be more strictly regulated to protect the democratic process from undue influence.

“Behests are a legal loophole, but they muddy the ethical waters,” Luna said. “That’s why I believe all such ‘behest’ payments should only be blind, such that the elected official is never informed how much is contributed and by whom.”

Parent announced last month that he was running for the state Assembly seat now held by Dr. Akilah Weber, his former colleague on the La Mesa City Council.

Weber was promoted to the statehouse in a special 2021 election and now plans to run for the seat being vacated by Sen. Toni Atkins.

Relationship, Relationship, Relationship #NonprofitBoards

If I've said it once I've said it one million times: the key to understanding and improving nonprofit board effectiveness is to focus equally on the relational and transactional nature of governance.  This applies to the work between board members as well as the work between the executive and board.  The following offers some thought about how this relational side can work.  I urge your consideration.

How To Deal With High Turnover In The Nonprofit Sector

 

Matthew Gayer

Forbes Councils Member

Forbes Nonprofit Council

COUNCIL POST| Membership (Fee-Based)

 

May 3, 2023,07:15am EDT

 

Matt Gayer is the Executive Director of the Catalogue for Philanthropy.

One of my favorite parts of my day-to-day is talking with a wide range of nonprofit executive directors who are leading critical work in the community. Universally, one of the biggest worries I hear most often right now is the hiring, retaining and engaging of staff.

 

In 2021, a troubling 26.2% of nonprofits across the U.S. reported job vacancy rates of 20-29%. Many of the local leaders I speak with share that they can’t keep up with inflation for salaries and overhead. This is especially true at small nonprofits that continue to see heightened demand for basic services in their communities.

 

 

As the reality of entering and staying in the nonprofit workforce becomes less attractive or sustainable, the long-term consequences of turnover and burnout in our sector grow more devastating. For the community-based nonprofits in our network that operate on lean budgets and teams, the impacts of these uncertainties are compounded with less access to institutional funding or networks of high-net-worth donors. Even if they know turnover is an issue, they lack the budgets to follow many of the "traditional" engagement tips.

 

These structural issues directly affect the material conditions and well-being of nonprofit staff. As a leader myself, I have seen it on my own time during the pandemic. The plight of many executive directors quickly becomes worrying about their teams, which leads to their own burnout, which makes them less able to take care of their teams. And that cycle can continue if not purposefully interrupted.

My experience has shown me that it is crucial to prioritize care for myself and my team in ways that are sustainable. This cannot happen without the support of others who are equally invested in nonprofit worker justice and committed to building strong, sustainable and efficient infrastructure for both individual organizations and the sector overall.

Your team wants to feel like they are heard. Wellness does not have to mean paying for expensive services that you cannot afford. A more long-term, sustainable and achievable way to ensure that you actually prioritize your staff’s well-being is to build it into your organization’s schedule and budget.

Check in regularly with your team and allow them to drive this conversation. Ask them what they need for your workplace to feel supportive, and continue this discussion even after your yearly budget has been approved. Be transparent about what your organization can offer while acknowledging areas for future improvement.

In your budget, can you guarantee a cost-of-living adjustment? If not, can you offer a stipend for work-from-home expenses? When hiring and promoting, can you establish pay bands and clear staff review structures?

Additionally, you can make smaller changes year-round to ease the stress on your team. Consider instituting a “no-meetings” day (or even half-day) every week. In your staff meetings, add an agenda item to express gratitude or practice mindfulness techniques. Intentionally schedule time for professional development and learning across the year. While some of these activities have a cost and others do not, it’s important to weigh the investment against the real cost of turnover and burnout.

Establish clear expectations with your board.

It is important for executive directors to build relationships with their boards that allow for honest feedback and a realistic view of their work so that their team’s workload is practically manageable. When you are discussing and setting annual or multi-year goals with board members, keep staff wellness top-of-mind. Are you growing just to grow? Can you achieve your goal in a sustainable and equitable way, or will this require your staff to make personal sacrifices? If it does not align with your values, shift this goal. Growth is often an admirable direction, but make sure it is mission-aligned, can be done within your values, and is not just because others “expect it.”

Tips For Philanthropic Funders

Focus your support on practical matters.

Training, compensating and valuing staff translates directly to improved outcomes. This is known to be true in the for-profit sector and it is equally true in ours.

I encourage funders, major donors and board members to center and grow people capital by offering multi-year general operating support without heavy reporting requirements. Fund internships, salaries, expanded benefits and sabbaticals. Create space in your conversations with nonprofits to talk about how you can tangibly support leaders and staff in improving the workplace and organizational culture.

Make nonprofit working conditions a core part of your DEI efforts.

If you’re committed to diversity, equity and inclusion (DEI), remember that racial equity is intertwined with workers’ rights and justice. Ground your DEI conversations in the material conditions that nonprofit staff—the real people who make up our sector—need to thrive, not just survive.

Conclusion

We must combat the expectation that nonprofit workers run on passion for their work. Just as they care about the communities they serve, so too should they be appreciated and supported as people. Intentionally funding and planning for staff well-being is a tangible way to start aligning our daily practices with our values. I have seen that past experience of burnout is a strong indicator of future burnout. It is time, for us as a sector and society, to prioritize building the capacity to care for ourselves.

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Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?

 

 

Platitudes about Board Service #NonprofitBoards

The following article about board service is filled with platitudes which for the most part leave me unconvinced of the offered advice.  At the same time there are what I believe to be valid kernels of thought.  You be the judge.  I will offer thought that mission, mission, mission is absolutely correct in terms of criteria for a board seat and criteria for strategy and evaluation.  I will however also offer that I can't disagree enough in this statement "....must work closely with stakeholders, including financial donors and staff, and volunteers".  If staff is the executive, ok.  And if donors and volunteers and whoever else might be stakeholders (customers?) is singularly about communication, then maybe but only maybe.

 

The Responsibility of Serving on a Nonprofit Board: A Philanthropic Journey with Raj Kalyandurg

 

 

Cambridge Global

Tue, May 2, 2023 at 12:00 PM EDT·3 min read

 

 

DALLAS, TX / ACCESSWIRE / May 2, 2023 / The role of a nonprofit board member is one that comes with great responsibility. Serving on a nonprofit board is not just an opportunity, but a duty to help drive change both within and outside the organization. Raj Kalyandurg, a Dallas-based private wealth advisor who has worked with several nonprofits, including The Salvation Army, outlines three key points on how to create value and impact as a nonprofit board member.

Understanding and Upholding the Mission

Board members must wholeheartedly embrace and support the mission of the nonprofit organization they serve. Raj Kalyandurg has worked extensively with The Salvation Army and Pratham, a nonprofit that strives to enhance education for underprivileged children in India. Both organizations exemplify his dedication. Pratham's education work in India is especially important to Raj as only 24% of adults are financially literate. He has consistently shown a strong commitment to these organizations' specific missions, ensuring their focus on effecting meaningful change. Pratham's mission is - "every child in school and learning well," and The Salvation Army is committed to meet human need wherever, whenever, and however, they can.

"Grasping the nonprofit's mission is vital. As board members, it's our duty to make sure the organization stays true to its core values and objectives," Raj Kalyandurg explains. By adhering to the mission, board members like Raj Kalyandurg can help nonprofits create a lasting impact in the communities they serve.

Transparency and Communication

Openness and collaboration are crucial aspects of serving on a nonprofit board. Board members must work closely with stakeholders, including financial donors and staff, and volunteers, to ensure the organization's activities are transparent and well-executed. Effective boards are resources that support the nonprofit's leadership team, not a replacement for them, further underscoring the importance of collaborative communication.

Raj Kalyandurg stresses the significance of open communication, saying, "As a board member, it's essential to foster a culture of trust and transparency. We need to keep everyone informed of our progress, challenges, and successes so that all stakeholders feel engaged and devoted to the cause." By nurturing an atmosphere of openness and accountability, nonprofit boards can forge strong connections with their supporters and create lasting change.

Strategic Planning

Active participation in strategic planning is a crucial requirement for serving on a nonprofit board. To ensure the organization's long-term sustainability, board members must collaborate to establish clear goals and objectives, develop a coherent vision, and create a roadmap to achieve the nonprofit's mission, including its financial vitality and viability to serve its mission.

According to Raj Kalyandurg, every board member must have a clear vision of the future and plan accordingly. Setting goals and objectives enables nonprofits to remain focused, efficient, and effective in carrying out their mandate. A well-defined strategy also helps nonprofit boards navigate challenges and continue making a positive impact on society.

Serving on a nonprofit board is both an opportunity and a responsibility. Upholding the mission, promoting transparency and communication, and engaging in strategic planning are essential to driving change and making a lasting difference.

Contact:

Andrew Mitchell, [email protected]

SOURCE: Cambridge Global

Failed Org and Failed Board #NonprofitBoards

If you have ever read my blog you know it is my habit to ask "where was the board" when an organization and particularly the exec "fails".  The following case actually tells not where was the board, they were there but instead asks "where is the board"?  The truth: many left upon learning of a very serious fail.  For shame, for shame, for shame - obviously the recruitment and screening process did not include asking whether prospects were really up to the job of being a prudent and responsible board member in a crisis.

Hats-off to Informed Carroll for presenting this case in the manner she did - most responsible she is!

Together We “DISOWN” It – Board of Directors fled non-profit before community could learn from scandal

By

 Informed Carroll

 -

 April 27, 2023 

12

 

–How can county government protect taxpayers moving forward?

“A NONPROFIT BOARD OF DIRECTORS IS A GROUP OF INDIVIDUALS WHO ARE ELECTED TO GOVERN AND OVERSEE THE ORGANIZATION’S OPERATIONS. THE BOARD IS RESPONSIBLE FOR SETTING THE ORGANIZATION’S MISSION, STRATEGY, AND GOALS, AND ENSURING THAT THE ORGANIZATION OPERATES IN COMPLIANCE WITH LEGAL AND ETHICAL STANDARDS.” 

Foundation Group

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The Carroll County community was rocked last month by shocking allegations of sexual solicitation of a minor made against the former executive director of a popular nonprofit, Together We Own It(TWOI).  An organization whose mission, according to their own website, “was to work with children and families to break the cycle of trauma by providing a stable and supportive environment, full of opportunity”.

TWOI was known in the community to be a place where parents could feel comfortable bringing their children, a place that was a safe haven for troubled youth.  However, because Maryland state law considers a 17 year old child to be old enough to give sexual consent, harm that the victim claims was inflicted will not be addressed.

It also seems that the heartbreaking situation will not be addressed by the TWOI Board of Directors.  Rather than working to understand the utter breakdown of safety procedures or working to find ways to prevent this from ever happening again, they fled.  Within hours of the scandal breaking, most of the directors resigned from their positions, scrubbing their names from websites and social media. All in an effort to disassociate themselves from the catastrophe.

The Carroll County Observer reported on April 6th that The TWOI website, as of March 29, 2023 showed the current board of directors as the following: 

These individuals made up the governing body for TWOI.  A body that was tasked to focus on providing accountability and oversight to the organization.  Why didn’t they ensure there were proper policies and procedures in place to protect the most vulnerable of youth that they served?

Through interviews with the victim, the community has come to learn of allegations that staff were having overnight sleepovers with troubled children and offering them car rides.  Things that teachers and staff of Carroll County Public Schools are not allowed to do because of the need to have professional boundaries.  Boundaries which exist in order to protect both the teacher and the student.

Even more disturbing is, why didn’t Carroll County Public Schools or the County Department of Citizen Services verify that the necessary guardrails for safety were in place before they entered into contracts and gave TWOI tax dollars?  Is the school system and the county government in the habit of handing out funds without doing due diligence on the organizations that they are funding?  It seems that at the very least it should be required that the same precautions that exist for teachers also be expected of these organizations.

There does appear to be some hope coming from our new board of county commissioners.  Commissioners Mike Guerin and Ken Kiler both advocated during the afternoon budget session on April 18th that any nonprofits wanting to do business with the county moving forward would have to give a detailed presentation outlining their mission, plans, objectives and impact on the community in order to receive tax dollars.   Although hindsight is 20/20, had this been in place during the budget processes of previous boards, we might not find ourselves in this situation.

Making Nonprofit Board Meetings Productive If Not Meaningful #NonprofitBoards

The following Twin Cities Business article does a fine job of offering suggestions for getting nonprofit board meetings to make a difference.  I would offer that most suggestions are common sense and reek of prudence (as they should by my opinion and in recognition that prudence is the standard by which accountability and behavior is measured).  And one last thought aligned with the final piece of advice in the article.  The writers propose doing a mini-evaluation after each meeting.  I would offer (not of my own account but frequently recommended, that an executive session follow every meeting.  An executive session sans staff will provide each member to offer their thought about the meeting and performance both of the executive and themselves.  Most healthy is this.

 

 

Holding Board Meetings That Make a Difference

Volunteer board members are pandemic-fatigued, so meetings must be substantive, compelling, and well-planned.

By Sarah Lutman

April 27, 2023

 

In my small consulting firm, we work almost exclusively with nonprofit organizations and every client—no matter the size or mission—has a board of directors. We get front row seats for the governance process, with the opportunity to see how board engagement makes a difference, or doesn’t, to our clients.

As consultants, we also experience the undertow created by board meetings, as busy executive directors and leadership teams finesse logistics and scurry to prepare board materials.

Timed agendas, updated financial statements, committee reports, and other documents not only provide board members with detailed information about the organization’s current performance, but also provide a paper trail of information needed for audits, tax returns, and annual reports. Often we see staff laboring over extensive and beautifully crafted reports, highlighting recent news and activities, and calling the board’s attention to emerging trends and strategic questions. Is all this effort worth it? Is this a good use of staff time? The answer is, it depends.

At their best, boards bring vision and thought partnership, life and work skills and knowledge, important community connections, and careful oversight to the work of nonprofit organizations. But all too often, board members are only tangentially engaged, and are not given meaningful work to do as volunteers.

The pandemic’s interruption of in-person board meetings has resulted in more boards continuing to use virtual platforms for regular meetings. When the shutdowns were in place, and the pandemic was at its most disruptive, many boards “met” more frequently and with more urgency, to help nonprofits navigate change.

Now that we are returning to in-person meetings and hybrid arrangements, it’s important both for board members and leadership teams to ensure that board engagement stays high. Strategies for engagement are especially important because of the general ennui and fatigue of society as we emerge from our isolation. Meetings need to matter. What’s a nonprofit to do?

Be sure there is a compelling reason to meet

Your board may meet more frequently than is actually needed. Consider the cadence of board meetings, develop a multi-meeting plan for agendas, and be sure that every single meeting is absolutely needed, and can be substantive. It’s reasonable for a board member to ask whether it was essential for them to have been in a specific place at a specific time, if the main purpose was to receive information that could have been distributed otherwise.

Spend time crafting discussion questions that merit the board’s attention

Think of board meetings as a place to ask strategic questions and gather insight from people who are coming from many different disciplines and life circumstances. Crafting questions that will generate lively and helpful discussion is as important—or more important—as any presentation that’s going to happen at a board meeting.

Make sure everyone has the opportunity to contribute

Make sure that board meetings are facilitated and that everyone is asked to contribute. Don’t let the loudest voices in the room dominate, and make room for contrarians and skeptics.

Give board members adequate time to read advance materials

Too often, a 50- or 100-page board docket lands with a thud just a day or two before a meeting. Make sure board members will have time to read and think about the materials they receive.

Provide a “mission moment” or other point of inspiration about the work

Board members volunteer to make a difference in the causes they care about. Make sure every meeting devotes some time to storytelling, a speaker, or other agenda element that is inspiring and motivating.

Survey members after every meeting for feedback and continuous improvement

A simple survey will tell a board chair and executive director how they are doing in their efforts to create important, meaningful meetings. Ask board members what went well and what didn’t, and whether a meeting was worthwhile. Quieter members will also appreciate the opportunity to provide written feedback on key questions, if they did not speak up at meetings.

All too often, we hear staff leaders groan about their boards of directors, instead of working to build a board that is an inspirational and dynamic partner in the work. If you’re among the complainers, now is a good time to make change. It will take time, but the rewards are more than worth it. A dynamic board is a superpower. Build one and see for yourself.