Does Your Board Need an Intervention?

Note: This is the first of two articles on nonprofit boards. These pieces are intended not only for senior management of nonprofits but also for board members and engaged volunteers and advisors.

I love helping nonprofits do better — especially those nonprofits whose mission is closely aligned with my passions. As a donor, the best way I can think of to help those organizations — other than just giving money — is to join their Board of Directors. My thoughts initially were that serving on the Board was a way to go a step beyond straight “giving”, and to actually roll up my sleeves and help the organization grow and thrive. Was that wishful thinking? Well, yes.

I’ve served on lots of boards, and as those who have read my book know, that experience hasn’t always been the most fulfilling/successful/enjoyable/productive. In fact, many of those experiences have been the epitome of frustrating. Why?

For me, several of the boards I’ve served on seem to see the board as a “necessary evil”. (Some might say boards are “a pain in the neck”.) Many senior staff see their boards as having only three functions:

1. To fund the organization’s overhead and work
2. To ensure that the organization is in legal compliance with nonprofit rules and regulations
3. To hire, evaluate, and set the compensation of the Executive Director

That’s not a full description, though, of what a nonprofit board does. If it was, my guess is that far fewer people would want to sit on boards. Like me, many board members want to get their hands dirty. (In a good way!) The National Council of Nonprofits defines board members as “the fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial management policies, as well as by making sure the nonprofit has adequate resources to advance its mission.” They add, “However, a board of directors does not exist solely to fulfill legal duties and serve as a fiduciary of the organization’s assets. Board members also play very significant roles in providing guidance to nonprofits by contributing to the organization’s culture, strategic focus, effectiveness, and financial sustainability, as well as serving as ambassadors and advocates.

If your board members aren’t doing the above, then your nonprofit organization is missing out on a valuable (and essential) tool. Do you have legacy board members who don’t benefit the organization, but who you keep on the board because you don’t want to hurt their feelings? Are you bringing board members on solely because of their financial contributions, without regard for their ability to provide guidance and strategic help, and to serve as an ambassador and advocate for your nonprofit? Does the adage “we do it that way because that’s what we’ve always done” sound familiar? If so, your organization’s reticence to change — to develop and sustain a strong, diverse, effective, engaging, responsible, and strategic board — is doing a disservice to your constituents, supporters, and anyone who has a stake in your organization’s long-term success.

I know that every nonprofit is doing its best to impact its constituents and mission. However, this is not a new problem. Fundamental and substantive changes to boards have not happened much in decades. Consider this: based on a survey of nearly 1000 directors of nonprofit organizations, the 2015 Survey on Board of Directors of Nonprofit Organizations found that “27 percent of respondents don't think their boards have a strong understanding of the organization's mission and strategy; 65 percent don't think their fellow board members are very experienced; and about half don't think their colleagues are very engaged in their work (48 percent) or fully understand their obligations as directors (47 percent). The report adds, "Our research finds that, unfortunately, too often board members lack the skill set, the depth of knowledge, and the engagement required to help their organizations succeed.”

Hmm. “Skillset, depth of knowledge, and engagement” are required. I don’t see “big bucks” listed there. I do agree that board members should all contribute to the organization’s fundraising efforts, but that contribution doesn’t necessarily have to be directly asking your friends and colleagues for money. There are many ways that a board member can help in fundraising — and ensuring the organization’s financial stability — that doesn’t feel uncomfortable or onerous. Look at the bigger picture!

The Taproot Foundation recently published a great primer for what a successful/functional board of directors looks like called “4 Qualities of an Effective Nonprofit Board”. If the areas that piece discusses sound foreign to you, and not at all similar to your current board, then you need to start making changes right away. The health of your nonprofit depends on it.

p.s. There is no shortage of articles and studies dealing with this issue. In addition to the resources listed above, check out Boardsource (always my initial go-to), SSIR reports, any of the established philanthropy periodicals, and even sector-specific pieces, like this one (it deals specifically with the health care field, but, but most of it absolutely applies to any NPO.)

- Lisa