You Get What You Don't Vet: How to Avoid A "Surprise" On Your Nonprofit Board

On the Board meeting agenda…?

Item #1: Funding has come in for a new program and it’s ready to launch. The final step is getting two new staff in place. The Executive Director reports on the job postings with a link to Indeed.com. Then she invites questions. Nobody speaks up and the Board Chair starts to move to the next item on the agenda. Jack interrupts: "Wait a minute. Who’s being hired for those two jobs?" The Executive Director reminds him she’s responsible for hiring, and a process is in place. Jack leans in: "Yeah, well you better interview my niece, Susan. I told her there would be an opportunity here. I know she’s applying. You'd better get out of her way." The Board Chair thanks Jack and says: "I’m sure all applicants will be considered. It sounds like Susan is a real go-getter." There is total silence around the Boardroom table.

Item #2: The Executive Director presents to the Board her rationale for recommending a Staff salary increase. They exceeded targets, added two new programs, and took their work to a new level. Jack blurts out: “How does it look for a nonprofit to increase salaries when so many corporate people are hurting? No way!" The rest of the Board is silent. Heads down, staring at their phones. The awkward silence is broken by the Board Chair moving on to Item #3.

Item #3: Transporting food to local schools, church basements and community halls requires three half-ton trucks. It’s time to purchase 3 new vehicles. The Executive Director presents the quotes from two dealers with specs and prices. Jack leans into the table and pounds his fist: "It’s time to bring that business my way. I've been on this Board for a long time and I haven't gotten a lick of business from here. You didn’t get a quote from my dealership. Get rid of those quotes. I'll get the trucks." Awkward silence. The Board Chair looks around the room and asks that this decision be deferred. The next morning, two Board members email their resignations citing work demands and family needs prompting their exit. Jack wins.

- - - - - -

Long before that Board meeting, Jack is scrolling emails on his phone. "Congratulations!" pops up in one of the subject lines, and Jack opens that one. The Business Association is awarding him "Entrepreneur of the Year" at the awards gala next month. Jack leans back in his lazy boy, puts his hands behind his head, and basks in the aura of recognition - while eyeing where he will display his upcoming award.

The next morning, an Executive Director at a local charity reads the announcement about Jack's award from the Business Association. She adds a post-it note on her computer screen: "Talk to the Board Chair about inviting Jack to join our Board".

It just so happens as the Executive Director writes the post-it note, Jack is about to tee off at Hole #1. Walter and his buddies arrived half an hour ago, and they're scheduled for Hole #1 right now. Walter questions Jack and is met with a quip: "I’m here, you’re not". Walter heads into the pro shop to speak about this with Mark.

As a first-year college student working his first-ever job at the country club, Mark aims to please. Walter complains to Mark about Jack jumping the queue. Just about to swing, Jack sees Mark heading towards him and slams his golf club into the turf: “What do you want?” Mark stammers: "Ummm, sir, I'm sorry but Walter is scheduled before you". Jack responds sternly: "What did you think I gave you that $100 bill for... candy? That was to get me out on the first hole early. Get outta here, kid. I'm teeing off."

3 months before the Business Association award and the country club incident, Jack is having his usual early morning start at the plant where he is CEO. He walks briskly past about 40 workers on the early shift - head down and scrolling his phone. He arrives at his office and throws his keys on the desk.

Robert, the Comptroller, walks into Jack's office with a folder and sits down: "Listen, Jack, these four payables are over 50 days. I know you told Marilyn to pause payment. But these companies did the work for us. We have strong cash flow, the work was done 6 weeks ago, and they need to be paid". Jack looks over his glasses: “I decide when bills get paid. They will wait 120 days". Defeated, Robert walks back to his office.

That same day, Marilyn asks Jack to decide on three different requests from local charities. Jack grumbles: "How much do they want?” Marilyn begins to read the letters as she passes him copies. He swipes them out of her hand and shoves them into the wastebasket underneath his desk. Marilyn is stunned. He leans across the desk: “Did you forget I’m building a marina for my sailboat? No to all three! Every week there are letters and calls for handouts. I’m not their ATM.” Marilyn gets up quietly and walks back to her desk. Disheartened, she will email decline letters to all three charities tomorrow.

As the workday is ending, Jack remembers he’s on his own tonight for dinner with his two teenage sons. He orders Gil's Pizza online and bolts from the office to pick it up on the way home. Sitting at the red light, he’s fuming about those charities asking for money: "It never ends! $1000 for this and $3000 for that. They expect me to fork out money every time they need it. Not a chance!"

Jack pulls into Gil's Pizza and parks in the only accessible parking spot. He throws his Ford F-150 into park and walks in the door. Along comes Henry and Mabel to dine at Gil's for their 60th anniversary. She uses a wheelchair. Henry pulls in and sees a huge Ford F-150 squarely planted in the wheelchair accessible parking spot. Disappointed, Henry and Mabel leave and go find a drive-thru. They'll have to eat at home tonight.

- - - - - -

Now tell me - do you want Jack on your Board??

You needn't answer - because I know for a fact you have a Jack on your Board right now. Every nonprofit organization does. Here's how he got there...

- Someone knew someone who told someone to get Jack on the Board. Suddenly, Jack was on the Board.

- A current Board member pushed HARD for Jack. "He's a CEO, he's influential, everyone respects him, we need him." Suddenly, Jack was on the Board.

- There was a vacancy on the Board followed by a "race to YES". Suddenly, Jack was on the Board.

- A meeting was held. Many pleasantries were exchanged along with some name dropping, a few backslaps, and a bunch of atta boys. Suddenly, Jack was on the Board.

I could list out another 10 scenarios, and they'd all add up to the same thing. Jack was brought into the Boardroom with no vetting, no rigorous process, no questioning, and no due diligence. What does an organization end up with when they bring Jack into the Boardroom like this? Surprises. And surprises are costly and very hard to get rid of.

You need to get in a room and put in the work up front to identify and decide on what constitutes a fit on your Board. Because once you are in the Boardroom, you will be derailed by the very Board member you didn’t bother to vet and verify their fitness for the Mission. It doesn't matter if "they run a really successful business". Nor does it matter if "so-and-so knows them from other Boards".

Here is the discipline required to vet Board candidates:

- A one-to-one meeting with the Executive Director/CEO

- A one-to-one meeting with the current Board Chair

- A one-to-one meeting (in person, private) with at least 3 key people in the community for their input (and especially their reaction) to this particular name being considered for the Board

- A one-to-one meeting (in person, private) with at least 2 people who work for or with this particular name being considered for the Board

- A reach-out to the leader(s) of other organization Board(s) this particular name has served on, if applicable

Once you've done this work, summarize what you learned from the individual being considered plus what you gleaned from conversations and feedback with others about this person.

The goal is to validate whether or not this person is a good fit for the Board and the Mission. You will achieve this if you seek to answer two questions:

- “Who is this person really?"

- "How can we expect them to show up in the Boardroom?”

Nonprofit Leaders: The Mission demands empathy. When you have a Jack on your Board, he has both the power and ability to suck empathy right out of the Boardroom. In my consulting work, I've yet to see a Board actively stand up against Jack's egotism, arrogance, and selfishness. And unfortunately, it's the Mission that pays the ultimate price.