What are the benefits of a Not-for-profit board appointment?

Clients will flat-out tell me they are not interested in opportunities on a Not-for-profit (NFP), Charity, or ‘for purpose’ board. Some will already have a full ‘dance card’ of pro-bono or voluntary engagements. Others need to be paid –? most NFPs can not pay, or if they do, it is minimal. Others rightly recognise that the cultural fit is not right for them or that their skills and experience will not be best utilised or appreciated in a Not-for-profit board context. Many others recognise the significant benefits of a Not-for-profit board appointment.

This article will help you decide whether to pursue a ‘for purpose’ board appointment is right for you.

Misconceptions of a Not-for-Profit or a ‘For Purpose’ board role

For many, the term ‘Not for profit’ conjures up images of organisations doing good work but operating with ropey governance, having well-meaning but unskilled board members, being under-resourced, being strapped, and lacking a commercial perspective. Let’s be honest: in some cases, this is true, but the same could be said for many commercial organisations.

The truth is that there are many well-governed and highly professional Not-for-profit organisations that offer terrific board opportunities to contribute and build your board career.

The value of a Not for Profit board appointment

Frankly, if you don’t have a NFP board appointment, I think you are missing out. There are plenty of reasons you should consider a board appointment in this sector:

• They often have standing vacancies for quality Non-executive Director (NED) candidates.
• You can easily find the contact details of past and present board members, who are often open to conversations with proactive and interested potential candidates.
• They usually advertise their vacancies (far more than commercial organisations), making your search much easier.
• They often experience difficulties attracting NEDs with suitable skills and time available to contribute.
• Once appointed, they offer you the opportunity to speak with other NEDs as a peer. This lets you have fresh conversations with people who can support your professional career or consultancy practice.
• Perhaps beyond anything else, they allow you to contribute and give back to an organisation or cause you are passionate about.
• They are a great ‘antidote’ to your day job.
• They can facilitate income through the connections you make. Although I have never been paid as a NED of several charities, I have earned significant income through the relationships I developed on these boards.
• They offer the opportunity to stay relevant and to keep your ‘grey matter’ moving.
• Some Not-for-profit board roles do pay (though not often and rarely enough to retire on).

But here is one major benefit

There are two significant environments in which to develop connections that can be leveraged personally and professionally. The first is in a team sports environment, and the second is around a board table. In both scenarios, you have a group of diverse individuals coming together with different skills and experiences to achieve a common goal. So, a board appointment, even for a small charity, can unlock significant benefits. In fact, I did a study a few years ago that looked at the top four Australian banks and asked, ‘Which of their board members sat on the board of a NFP organisation in addition to their bank board appointment?’ Unsurprisingly, over 90% of these board members held charity appointments. With organisations including:

• Sydney Theatre Company
• Great Barrier Reef Foundation
• Heart Research Institute
• Victorian Opera
• Alannah & Madeline Foundation
• Carey Baptist Grammar School
• St Vincent’s Institute of Medical Research
• The Australian Ballet
• Very Special Kids
• Melbourne Fashion Festival
• Council of the Australian War Memorial
• Financial Markets Foundation for Children
• Sir Roland Wilson Foundation

Do Not-for-Profits pay their board members?

Whilst most NFP board positions are unpaid, there are plenty of exceptions. In fact, I was recently speaking with a member who was pitching for the Chair of a Not-for-profit board with a turnover of millions and remunerating north of $150,000 pa. This was not an insignificant role by any stretch and flies in the face of what many believe a NFP to offer both financially and professionally.

Where to start looking for opportunities

A great place to start is by researching what charities exist in Australia and which may share your interests and passions. The ACNC site has a complete database of all registered charities and not-for-profit organisations in Australia. In addition, plenty of websites list charity and NFP board vacancies, including Ethical Jobs, Community Directors, the AICD’s Directorship Opportunities, SEEK, and WOB. It takes some effort to search through these lists, so in the end, it might be easier to view a full list of every publicly listed charity, government or commercial vacancy that we source for our members here.

A final word – your passion is key

Your motivation for a Not-for-profit board appointment must never be that of a stepping stone to a ‘better’ board role. Chairs and Non-Executives are passionate about the organisations they serve, the work the organisation does and their contribution to the governance of that organisation. If you want a board appointment in this sector then you must be able to demonstrate similar passions. Indeed, if you can not, your chances of being appointed are slim. So, passion is important – albeit not alone.?

NFP and, for purpose, non-executive directorships offer terrific personal and professional opportunities. However, I recognise that these sorts of appointments are not right for everyone. For some, they are a worthy first step into a fulfilling board career or an opportunity to give back. For others, it is worth waiting for a more appropriate opportunity that will facilitate their longer-term board aspirations; however, that is a topic for another article.

About the Author

David Schwarz?is CEO & Founder of Board Direction – Australia’s leading board advertising and non-executive career support firm. He has over a decade of experience of putting people on boards as an international headhunter and a non-executive recruiter and has interviewed over one thousand non-executives and placed hundreds into some of the most significant public, private and NFP roles in the world