Your boss just asked if you’d be willing to be nominated for a seat on the board of the local YMCA. You are flattered to be asked. You enjoy working out at the Y. You think this is great – maybe board members get to attend classes for free! You tell your boss you are interested, and a meeting is set up with the YMCA executive director.

As the meeting draws closer you realize you are unsure about what it means to be a board member. What exactly are the roles and responsibilities of a board member?

Your first responsibility is to find out the expectations of a board member and ensure you can meet those expectations. Learn all you can about the organization. Are their mission and values consistent with yours, such that you will become a passionate advocate for the organization? As a board member you’ll be asked to make your service to this organization your priority for the next several years.

You have a responsibility to give them your time, talent and treasure, the three “T’s.” What is the time commitment of a board member? You have a responsibility to prepare for and attend all board meetings. In addition to board meetings, both in person and remotely via conference calls, a board member is expected to participate in committee meetings/calls. There may also be events and community activities that board members are asked to attend. Understanding the time commitment prior to agreeing to serve is important. If a board member does not fully participate, they let their fellow board members and the organization down.

Giving your talent is your next responsibility. A well-planned board recruitment strategy results in a diversified board with skillsets needed to fulfill the mission of the organization. That likely means board members with finance, investing, communications, marketing, legal, human resource, strategic planning, event planning, fundraising, technology and/or programming expertise are needed at various times. When you meet with the organization’s director prior to agreeing to be nominated, determine if your expertise fits with a skillset needed on the board.

The last “T” represents your treasure or the financial commitment that comes with serving on the board. Every non-profit expects the board to take a leadership role in fundraising. Asking others to give without setting the example is difficult and may make the potential donor question why they should give if the board is not giving. Some boards have a minimum donation they ask from all board members. Others may ask each board member to give to their personal capacity.

So: you’ve met with the executive director, you know you can meet the expectations and enthusiastically agree to serve. Your first meeting is approaching, and in reviewing the pre-meeting materials, you feel a bit overwhelmed and start to doubt yourself. The financial statements look like they are in a foreign language. There is an investment presentation included that is confusing. The agenda includes program topics you were not even aware were part of the organization’s offerings. Don’t worry there is a board orientation before your first meeting. And you have been assigned a mentor who has requested a call prior to the meeting.

Set up a time to speak with your mentor. They will help you navigate the board meeting and help you feel comfortable. Also, you can ask them questions prior to meeting that you might be afraid to ask during the meeting.

Your First Meeting

Prior to your first meeting review all the materials provided in advance. Ask your mentor or the executive director any questions. Attend the orientation where you will likely hear about the history of the organization, review the financial statements, be provided with key documents such as the by-laws and key policy statements, meet staff and hear about which areas they are responsible for, and meet the officers of the board. The officers may explain the committee structure and their responsibilities. They may invite you sit in on the committees so you can decide which committees you would like to serve on. Or they may appoint you to a committee that fits your skillset.

Hopefully during the orientation, they will explain your roles and responsibilities. The primary legal responsibility of every board member is referred to as “fiduciary responsibility.” A board member should never do anything this or may be perceived as violating fiduciary responsibility or duty. It is your responsibility as a board member to serve as a fiduciary of the organization to ensure to the best of your ability its long-term viability.

The Cornell Law School Legal Information Institute website (http://www.law.cornell.edu/wex/fiduciary_duty) defines fiduciary duty as follows:

A fiduciary duty is a legal duty to act solely in another party’s interest. Parties owing this duty are called fiduciaries. The individuals to whom they owe a duty are called principals. Fiduciaries may not profit from their relationship with their principals unless they have the principals’ express informed consent. They also have a duty to avoid any conflicts of interest between themselves and their principals or between their principals and the fiduciaries’ other clients. A fiduciary duty is the strictest duty of care recognized by the US legal system.

In your situation as a board member, you are a fiduciary for the organization who is the principal in the above definition. Whenever you are acting as a board member, you should ask yourself if you are acting solely for the benefit of the organization.

Most well-run organizations conduct their meetings in accordance with parliamentary procedure outlined in The Eleventh Edition of Robert’s Rules of Order Newly Revised. Often an organization’s by-laws specify that meetings and conventions be conducted in accordance with the latest edition of Robert’s Rules of Order. Prior to your first meeting, familiarize yourself with parliamentary procedure.

Familiarity with the basic parliamentary rules for meetings will make any new board member more comfortable in making motions, understanding when a “second” is required for a motion, understanding the rules of debate, and knowing how to end them by “calling for the question,” etc. Sounds like a foreign language, but once you understand the basics as outlined in the above short book, you will understand how to take part in the meetings more effectively.

Staff vs Board Member Responsibilities

Strong committee and board performance results from a partnership between staff and volunteer board members. Effective organizations have a clear understanding of their respective roles as they move the organization forward. To be clear, the only staff member who reports directly to the board is the executive director.

Generally, the board is responsible for hiring the executive director, providing feedback to the executive director, communicating expectations, conducting annual personnel evaluations, and rewarding their performance. When external issues arise, the board has the role of analyzing the situation and working with the executive director to handle public relations and respond as one voice supporting the executive director.

The key to success in the leadership team of the executive director and the board is the ability to understand the expectations of each other and to communicate frequently. Joint responsibilities include establishing the priorities of the organization based on the overall strategic plan. They also include defining the who, what, when, where and how’s of execution of the priorities. Jointly evaluating the activities and results is also important. Was the latest project worth the effort?

The best way to build relationships is to spend time together, even if it is telephonically. No surprises builds trust. Things will not always go as planned, but if the board member is kept informed, both parties can use their specialized knowledge to resolve issues together.

Volunteers have much to learn from staff, and staff have much to learn from volunteers. Each is in their position because of their specialized experience, knowledge, and skills. Many board members have experiences gained in the for-profit world that are applicable in the not-for-profit world. However, board members need to understand that they are not the CEO/CFO or chief anything of the non-profit and that the organization’s staff are not their staff. Mutual respect is critical for a successful board and staff partnership. Both groups are passionate about the mission of the organization, and only by working together can they fulfill the mission. The following chart clarifies board vs staff responsibilities:

Remember, your responsibility as a board member is to help set the strategic direction of the organization and oversee the financial results and controls—not to manage day-to-day operations. Your role is to develop the strategy, policies and procedures for the staff to execute. Stay out of the weeds and focus on the big picture and mission of the organization. Now go forth and serve, moving your organization forward.

The real challenge for directors of nonprofit boards isn’t regulatory compliance—it’s high performance. Most who serve on a nonprofit board have a passion for the organization’s mission, and they show up filled with good intentions. Too often, however, they don’t have clearly defined responsibilities, or directors disagree with management about what those responsibilities should be, or someone defined these duties long ago, and they no longer seem relevant. Now, more than ever, directors are taking their responsibilities seriously, speaking up, and striving for results; but in many cases, the evolving relationship between the organization’s management and the board has not found the right symmetry. Finding it will depend on everyone systematically examining how board members can have both high impact and high involvement.

The key to better board performance lies in the working relationships between directors and executives, in the dynamics of board interaction, and in the competence, integrity, and constructive involvement of individual members. Most people understand what boards should be: sources of challenge and inquiry that add value without meddling—champions of the organization that make CEOs more effective but not all-powerful. The high-performance board, like any high-performance team, is competent, coordinated, cohesive, and focused. Such entities do not simply evolve, however. An exacting blueprint—a plan for both high impact and high involvement must guide their construction.

This model addresses how directors and executives need to view nonprofit directors’ involvement and their role in overall effectiveness. Sometimes boards can enjoy effectiveness, even with low involvement. Boards that have their fingers in when they shouldn’t will be only minimally more effective than boards that stay out of everything. The key lies in appropriateness of involvement.

When involvement is inappropriately low, effectiveness will be low, too. Organizations in the Passive Board quadrant experience minimal board participation in decision-making. These directors also have limited accountability among themselves and find their primary duty to be ratifying the CEO’s decisions.

Passive boards meet at scheduled times but seldom schedule anything outside of those meetings. They overlook or ignore opportunities to meet with internal and external auditors, general counsel, or key managers. They don’t seek active participation in strategy formulation or attend to the leadership pipeline. Members fail to make themselves available to the executives in the company, so the experience and expertise of the directors languishes

Boards operating in the Laissez-faire quadrant manage to enjoy some effectiveness because they have learned to be involved on critical issues. For instance, they may devote time and attention to strategy formulation but then leave implementation to the company’s executives. Directors oversee CEO succession planning but trust most of the rest of the leadership pipeline to management. If the company has hired strong executives, directors don’t need much more engagement than the Laissez-faire Board offers.

Directors on these kinds of boards maintain credibility with stakeholders because they know the difference between the important and the unimportant and show up for the important. The board certifies that the business is managed properly and that the CEO meets the board’s requirements. Many CEOs have come to appreciate and desire a Laissez-faire Board, even though it’s not the most effective of the four options.

The expression among many executives is that directors should be “Noses in, fingers out.” In other words, these executives want directors who know what goes on but who stay out of the day-to-day management of the company.

Fingers-In Boards can exist in any situation, but they tend to surface during crisis. The board becomes deeply involved in making key decisions about the company and holds frequent, intense meetings. They intrude inappropriately, compromising both morale and effectiveness. They bother people. Frequently the Fingers-In Board focuses on tactics, not strategy. They can waste an entire meeting discussing a new label or brand—something that even the VP of marketing wouldn’t ordinarily spend time on.

These kinds of directors have been known to bypass the CEO and give direction to employees. They want deep involvement with decisions. They convene frequently, often without a clear purpose in mind. They lack effectiveness, primarily because they squander their time and energy on the non-critical instead of zeroing in on the critical efforts they should be addressing.

Directors on Stellar Boards serve as the CEO’s partners. They provide insight, advice, and support on key decisions. They recognize their responsibilities for overseeing CEO and company performance. Board members conduct substantive discussions on key issues and actively define their roles and boundaries. They fill gaps in executives’ experience and expertise, so they serve as a constant source of advice and wisdom.

When Stellar Boards meet, their agendas limit presentation time and maximize discussion time. Directors and executives take advantage of informal interaction among directors. Board members are honest yet constructive. They stand ready to ask questions, challenge leadership, and oversee CEO and organizational performance. Directors tell executives what they need to know and hold them accountable for results. Board members also actively seek out other directors’ views and contributions. They prioritize well and spend appropriate time on important issues.

Top performance on nonprofit boards starts with strong leadership—persuasive management leadership and influential board leadership. Too often, however, directors assume the role of sponges who simply absorb that which management puts in front of them. One of the key responsibilities of each director involves asking questions and showing independent thinking. These questions should stimulate dialogue and guide the process of making the implicit explicit—of making knowledge pragmatic advice.

To do that, board members need to receive the agenda and related materials in time to review them prior to meetings. During the meeting, board members should request and encourage discussion, not presentations. Between scheduled meetings, management should keep directors informed of major changes and important issues.

The next major leadership duty is to move the discussion to decisions—not necessarily consensus. The discussion should uncover all kinds of differing points of view, but ultimately the board needs to ask, “How will management use these insights to make necessary changes?”
Active, compliant boards and executives no longer offer organizations enough. Companies need and demand stellar performance from both individual contributors and the board as a whole.

History has taught us that the prerequisites of nonprofit board success—courageous leadership, bold direction, clear goals, and a systematic approach to implementation—can also provide a recipe for disaster. The reason? Decision-makers must make choices with far-reaching consequences based on assumptions about what that future will look like. Of course, this paradox has always existed—nothing new about an inability to prophesize about the future. But one thing has drastically complicated the landscape—the future arrives much more quickly now than it used to, and many of the guests it tows along are neither invited nor welcome.

Many board members feel unsure about their ability to create a credible strategy to boost their own performance and to influence the performance of those working in the organization. Yet, the best plans to improve productivity come from pragmatic business leaders who willingly consider alternative futures for their organizations. This doesn’t happen automatically, however. Board members must painstakingly address how to link mission to margins to create a stellar board that capitalizes on the organization’s unique contribution.

It all starts with the organization’s mission—but it can’t end there. Before board members influence leaders on strategy formulation, they should have a clear understanding of the mission of the organization and how to tie margins to it.

A mission statement should play the same role in an organization that the Holy Grail did in the Crusades. The mission defines the organization’s reason for being—the touchstone against which everyone evaluates strategy, activities, and expectations for overcoming the competition or making a unique contribution. Without one, members will diffuse resources, enable individual units of the organization to operate in silos, create conflicting tactics, and confuse customers, suppliers, financiers, and employees.

Conversely, when you have a well-articulated sense of purpose, you build a firm foundation that provides clear guidance for all significant decisions and establishes a point of reference for setting strategy and planning its execution. An effective mission statement answers these questions:

• Why do we exist?
• Who are our best customers?
• What do they expect of us?
• Who would miss us if we went away?

In addition to defining the organization’s identity, the mission guides its development over time. Although the mission should be resistant to capriciousness, as the external landscape changes, leaders must tweak the mission statement as they recognize how to translate purpose into practice—and how to take in enough money to keep the mission relevant and alive.

Most nonprofits don’t suffer because their board members don’t understand the organization’s mission. On the contrary, they miss the mark when they don’t figure out how to honor the mission while making money. I consistently repeat two mantras to my nonprofit clients: “No margins, no mission,” and “Nonprofit doesn’t mean not-for-money.”

Most boards understand how to make what I call “Mission Income.” This money comes from the products and services the organization provides. For example, a nonprofit hospital board knows that reimbursement is key, and they may also understand how to generate income from non-hospital amenities, like coffee and gift shops. But too often they leave other revenue streams like grants, individual contributions, corporate gifts, and government funding untapped.

Board productivity requires that decision makers at all levels of the organizations have the financial acumen to know what to do with the money once they have it, too. But if board members have overlooked these quantitative skills when they have recruited new members, the board will continue to struggle. Simply put, members need to know what the numbers mean, how to make sense of them, and how to use them to make sophisticated business decisions.

I have often said that on any board—public, private, or nonprofit—if you can sit on an audit committee, the organization will likely build a statue in your honor. If you can chair one, they will notify the Vatican of the miracle, and you will meet the requisite criteria for canonization. That’s not too much of an exaggeration.

In most cases, the real challenge for directors and executives in nonprofit organizations isn’t regulatory compliance or abandonment of the mission—it’s high performance. To achieve it, directors and executives need to systematically examine the five constructs of a successful, stellar board.

Board productivity depends on strong leadership and tone at the top. Therefore, I recommend that the chair and CEO roles remain separate. Both directors and the CEO can be more effective when the roles and duties of the chair differ from those of the chief executive. Also, when different people have these roles, the chair can act as a lubricant between the board and senior leaders in the organization, especially when inevitable conflict occurs.

Board success starts with the relationships between the directors and the CEO.  The the CEO should regularly disagree with the board, and robust debate should occur, but never at the expense of good rapport. Embrace tension. Move beyond the outdated thinking that the board is a necessary evil and realize that a certain degree of tension is both healthy and desirable.

Contention, however, is not productive. The CEO should ask questions and question answers but all in a climate of candor and responsiveness. Trust, respect, and open communication form the foundation of any strong relationship; board relationships are no exception. Once the board has established rapport among themselves and with the leadership of the organization, everyone can focus on strategy.        

Too often board members don’t understand when and how they should be involved in strategy. Stellar Boards don’t formulate strategy, but they maintain a clear focus on it. They assess and critique it. Like the princess in the story about the pea, members need to detect flaws deep in the strategy—not to execute but to notice and report.

To safeguard the leadership pipeline, members will also want to influence succession planning—especially of C-suite positions. Members will certainly want to discuss the retirement plans for senior leaders plans, but they need to do more. They can play a more active role in setting criteria for hiring and promotion, identifying the stars in the organization, and creating opportunities to keep these people challenged and engaged. It’s all part of governance.

“Governance” is one of those all-encompassing words that people use but that few can explain in concrete terms. For nonprofit boards, it usually means general board oversight. Governance underpins the board’s ability to do all the aspects of its job. While strategy and succession planning address specific “What?” questions, governance deals with the “How?” It includes but is not limited to decisions about the board’s size, frequency of meetings, director selection, stakeholder relations, and social responsibility. When a board has a governance committee, those directors initiate action plans with specific timelines for implementation of recommendations. This committee should have the authority to shape and recommend policy and structure.

Why do board members so frequently fail at linking missions and margins? As noted, it’s not because they don’t understand the mission. They do. Boards run into problems for one reason. Most people who serve on nonprofit boards have a clear passion for their organizations, but they lack strong financial acumen that would help them make the margins that would ensure the mission. The remedy? Set the strategy, define goals for moving the organization forward, and become more self-directed than grant-driven.

Development committees can be critical to the success of any non-profit’s fundraising efforts. A great development committee can drive an annual fund campaign to success, secure new sponsors for special events, and play an integral role in cultivating and stewarding donor relationships. In short—they can be every Development Director or CEO’s secret to fundraising success!

So, who belongs on a development committee? It’s true that any one passionate board member could be a productive, contributing member, but just like any strong board of directors, a development committee requires a certain set of skills and resources be combined for best results.

In my experience, here are the five people you’ll find on the most successful development committees:

1. The Business Owner or Chief Executive

I once had a professor (who also happened to be a seasoned executive with years of experience at the helm of one of our nation’s non-profit giants) sum up board development in one sentence: “You want the number 1’s or the number 2’s,” she would say, referring to business owners and corporate leaders in top positions. She believed strongly that when you engage corporate leadership, they bring with them more than just their own resources and teams—they bring along their partners, their vendors and suppliers, and they open doors to resources you may never have imagined. In my experience, I have known this to be true.

For the smaller non-profit, this might be intimidating. However, look at the composition of your own board. Do you have top leaders of local businesses or corporations? Who has access to the strongest networks? These individuals need to be engaged on a development committee.

2. The Marketing Professional

 Often times, marketing departments are a luxury only afforded to larger non-profits or those few that are willing to invest in them as a means to strengthen fundraising efforts. However, whether it’s a marketing professional from your board of directors or your internal team, your development committee needs their participation.

The right marketing professionals can aid in developing a cohesive communications strategy, help raise brand awareness, and can take your sponsorship materials and marketing collateral to the next level. At a time when so many non-profits are competing for event attendees and individual donors, delivering a polished professional image and engaging materials could be the key that helps you stand out to donors.

3. The Salesman (or Woman)

 Let’s face it. Not everyone is comfortable soliciting donations, even when they love and care for the cause. What good is access to strong networks and awesome marketing materials if you can’t muster up the courage to ask for support? The key to a successful development committee is making sure it’s made up of individuals who aren’t afraid to make the ask! I refer to them here as salesmen and women; however, in reality, they are any members of your board with the passion and confidence needed to connect with prospective donors and ask them for support. When it comes to inviting members of your board to join the development committee, start with those you know fit this description and then utilize them at every stage of fundraising—cultivation, solicitation and stewardship.

4. The Board Treasurer

Every development committee should have a good understanding of the financial position and needs of the organization. Having the board treasurer sit on the committee is a good way to ensure that the committee receives regular financial statements, and can closely monitor income and expenses. The board treasurer can provide valuable insight and answer questions relating to the budget and financial history of the organization. And, besides, everyone needs a good numbers guy!

5. The Development Director or Executive Director

As a best practice, the development committee should be chaired by a board member. However, the chief development officer or executive director (or in some cases both) should be a key member of the development committee. Not only do they ensure the committee has access to necessary internal reports, but it is ultimately their responsibility to implement the development plan with support and guidance from the committee.

The success of a nonprofit hinges on several factors. Expenses must be managed. Staff must be able to work effectively and promote the organization’s mission. And you need the right board of directors that can provide more than just financial support.

Choosing the right board members is crucial to the viability of the organization. Perform a thought exercise and image if you could pick any public figure or business executive for your board. How would you select that person? Beyond just their financial potential, what type of person comes to mind? A titan of the tech industry that is a leader in innovation and promotes sustainability? A veteran executive with thousands of contacts within business and politics that can prove invaluable for your organization’s growth? Think broader than these types of characterizations and consider what type of person is ideally suited to be a director.

Choosing a short-term solution in the form of a deep-pocketed but disinterested director won’t pay large dividends down the road. You want to recruit board members that truly embrace your message and can effectively pair that enthusiasm with their multiple layers of personal connections.

The trick is knowing what to look out for when building the best long-term board. Here are four tips for spotting these individuals who are connected and effective:

Thought Leader Status

“Thought leader” is a term applied to nearly every senior executive and business owner, but what does it truly mean? To determine if the person is a go-to person in their space, you have to look beyond their company bio. Is your director prospect frequently quoted in the news regarding their industry opinion? Are they speaking at the top conferences and receiving recognition for their work? Talk to other top people in the industry to gauge your prospect’s standing. Are they well-respected due to accomplishments and knowledge, or are they using blustery self-promotion? You want a subject matter expert and a strategic thinker that you can turn to when challenges present themselves.

Social Network Reach

It’s 2017, which means social connections matter, not just the “Rolodex”. Does your prospect engage with other individuals via social networks? Do they have a following of people that want insights and a glimpse into the prospect’s persona? All of these peers and friends can be later leveraged as connections, giving your organization a massive reach to contributors and potential donors.

Relevant Nonprofit Experience

If you have a donor in mind based on their prior giving, were they also involved in the nonprofit in some manner? Previous board members or those that have led partnerships are good candidates because they understand how to fundraise and how to generate support for nonprofit missions. Prior experience also means they already have nonprofit connections, whether it’s with other organizations or a donor network. You certainly shouldn’t discount an interested board member who brings money and connections to the table, but it is helpful if they have a clear understanding of the peculiarities and subtleties of the nonprofit landscape.

The Intangible

Judging the “passion” of an individual is difficult, but not impossible. Do your research about potential directors to see if your interests align. For example, are they a CEO of a firm that strives for maximum sustainability, which would tie-in nicely with your organization’s environmental and recycling mission? Did they previously do a stint in the Peace Corps in South America? How does that relate to your goals and the mindset you need for a new director? This research takes time, but thankfully there are technology tools out there that are helping nonprofits to see not only the giving patterns of individuals, but also their “relationship capital” in terms of how connected they are with the people that get things done.

Managing a nonprofit is challenging enough, and can be downright impossible with a set of disinterested directors in place. While of course you need board members that can contribute financially and provide introductions to other philanthropically-minded individuals, it’s also vital for directors to possess certain traits. Selectively reviewing prospects for these traits and for their expansive network of connections will ease some of the burdens of nonprofit management by providing your organization with incoming donations and trusted strategic partners.

When nonprofit boards underperform against the expectations given, it’s a natural reaction for those in charge to want to terminate board members who sandbag.  But there’s no quick fix for turning around inactive or ineffective boards, so the planning of board member selection needs to be done strategically with deliberate action of injecting cultural and professional diversity.  It’s through diversity that you can increase board performance from the beginning.

Here in the United States, nonprofit organizations are required by law to have a board of directors for the governance of their operations.  Individual states set the requirements that dictate a minimum number of members needed, their duties and responsibilities to the public, and policies they’re mandated to draft.  But depending on the state in question, this may differ.  While forming an organization and acquiring tax exempt status is an arduous task, establishing an effective board of directors remains even more challenging for many.  I’ve seen this first hand.  Someone with a great idea wants to satisfy a need in society, so he or she hastily forms a nonprofit organization to fill that void, oftentimes overlooking program longevity.  The founders of these startup nonprofits recruit board members from their immediate circle of influence including their friends, family, or acquaintances to satisfy those pesky legal requirements.  These are people they trust, which adds a certain amount of comfort in bringing them on board, but over time, what seemed like a great idea turns into a nightmare with challenges around fundraising, recruiting volunteers, managing finances, appointing a CEO, developing programs, and the list goes on.  The board has passion and wants to support.  After all, this is their friend.  But what went wrong?  The answer is simple, what the board of directors lacks in professional know-how, business sense, and social capital, cannot be made up through any amount of passion alone.

What I’m about to say here isn’t new, nor will it shock you, but most people surround themselves with others like them.  While this isn’t a bad thing, and even though these friends (the newly appointed board) are well intentioned, there’s an increased likelihood these “friends turned board members” have similar values, points of views, and perspectives.  The board likely has cohesion, and while not always the case, there’s a possibility that this can result in social behaviors like groupthink.  This is when decision making becomes impaired by cognitive inhibitors due in part to lack of openness and perspective.  The appointing of the board of directors has greater implications on the tone, culture, and overall performance of the non-profit they govern.  Forming the board is one of the first steps in founding a non-profit organization, and it’s also the most important.  Forming the board needs to be done through diversity, because in the end it affects performance.

Strength through diversity

Josefa Iloilo, the former President of the Republic of Fiji once said, “We need to reach that happy stage of our development when differences and diversity are not seen as sources of division and distrust, but of strength and inspiration.”  While this was said in the context of diversity as a sovereign nation, the same can be applied to any workplace, volunteer corps, and board of directors.  There’s a certain agility that comes from having ethnic, gender, and professional diversity.  Having diversity creates a permissive environment for shared openness, different perspectives, a wide array of professional expertise, and social capital.  Pew Research Center projects the disappearance of a single racial or ethnic majority in the United States by 2055, so with a more diverse America, a board that can think and act through the lens of the communities they serve provides advantages.  This is the bottom line; having a diverse board creates an environment where creativity and innovation flourishes.

Why diversity matters in the long run

It’s always the easy choice for organizations to recruit board members from their pool of members and associates (and even friends and family).  However, it’s not always the best idea.  The board has a primary function of ensuring the organization fulfills its commitment and responsibility to the public as stated through their mission, code of ethics, and charter.  They achieve this through a check and balance system where accountability plays a vital role.  Diverse thought and experience will benefit the board when creating policies around whistleblowers, conflicts of interest, and financial auditing and management because diverse groups are likelier to have stronger accountability measures.

Another function of the board is resource acquisition.  When acquiring resources for longevity of organizational success, you also increase the avenues in which you look for support, thus increasing one’s networks.  Some of the resources in question may include human capital or be related to finances, but through diversity, acquiring said resources can be accomplished with social capital.  This can include the board’s access to personal and professional contacts that have the necessary resources for the organization.  A diverse board will be able to satisfy the acquisition of resources through their reputation or credibility (this is mostly true with members who have high visibility).  High visibility board members can create a sense of “legitimacy” to the organization’s stakeholders and the public.

More importantly for organizations that are focused on social reform and advocacy work, there’s also the consideration of board members who have political clout.  Political capital that exists amongst the board (think connections with local, state or federal governance) can work wonders when advocating or trying to change legislation that impacts those you serve.  Diversity can also assist in setting the organization apart from others.  There’s an added benefit of being held in higher esteem by the public versus organizations that aren’t diverse.  Boards that are diverse are adhering to social norms and acceptance, sometimes resulting in garnering more support.

Tips to increase diversity

Whether your board is already formed, or you’re starting from scratch, it’s not too late.  Try some of these practices to develop a board that’s inclusive and starting off on the right foot.

• Implement and enforce board terms and term limits.  Have a set number of years per term, and also limit members to a set number of terms.  This forces selection of “new blood.”  With the introduction of new members comes new ideas, different perspective, skills, and access to resources that can be acquired through a member’s social capital.

• Avoid generalized screening methods.  Implement a process that screens for particular skills and expertise in areas where you have requirements.  With a more stringent vetting process, you weed out those who may be well intentioned, but lack management skills or those who may be incompetent.  This results in onboarding of members who exercise critical thinking and sound decision making and who work effectively.

• Provide diversity training.  Invest time and money into training your board of directors like you would for other volunteers or paid staff.  Like skills training, other forms of training will benefit the governing board.  Even though the effectiveness of diversity training is largely debated, there’s evidence that training helps create empathy, reducing discriminatory behavior.  Training alone isn’t the cure, but it’s a great step towards minimizing discriminatory behavior that negatively impacts the board’s satisfaction.

• Include others in a diversity strategy.  Diversity means inclusion, so take an inclusive approach, allowing others to be part of a holistic strategy beyond a single person or decision maker.  This can take the form of working closer with cultural centers, community partners, and other reputable nonprofits who specialize in diversity and inclusion.  By working with partners who may be subject matter experts, you can increase immersion into the cultures you’re trying to better understand and serve.

Diversity isn’t the “end all,” it’s just the start

While diversity in and of itself won’t lead to success, this is a great start.  By implementing a selection process, adopting governance policy, and investing in workforce training, you take necessary measures to set up the board for success.  These steps will encourage and foster an environment of inclusion for the organization’s other aspects.  The impact will transcend staff, even increasing diversity in the volunteer corps.  Boards with cultural, ethnic, gender, and professional diversity tend to have a more diverse leadership cadre, resulting in diversified resources.  Just be sure to err on the side of caution, don’t get overzealous and select polar opposites; this may create the perfect environment for conflict.  Doing so could act as a pitfall if not navigated in a thoughtful manner, but when done correctly will increase the likelihood of success from the onset.  Diversity in nonprofit governance will continue to be a sought after “must have,” and not just for the obvious reasons of cultural and societal norms.  Diversity also impacts long term performance of an organization, so get ahead of the curve and plan for the future today.

I knew that question would arise. My last article was entitled “Diversity on Nonprofit Boards.”

The question I received was “You have convinced me that diversity is important. But how do I go about achieving diversity on my board?” I knew that excellent question would arise.

First, identify the diversity you would like to include on your board. Perhaps you realize the need for young people on your board or African-Americans or program participants.

Then tell your board and staff members about this need. Ask them to send you information about the individuals they are recommending.

If you do not receive sufficient names of applicants this way, check with groups in your community which serve individuals in whichever diversity you are seeking. Ask the local boy scout or girl scout troop for recommendation of young people. Ask the NAACP President to recommend African-Americans. Check with the Hispanic Community Center or the pastor of the Hispanic Church to obtain names of possible Hispanic board members.

If you would like program participants specifically to join your board, send a brief note to all present and past program participants, asking them to volunteer or to recommend others.

Give the board’s Nominating Committee the responsibility of reviewing the various recommendations you have received. Then have a member of the Nominating Committee set up appointments with prospective members. You might want to hold the meetings in the organization’s office and include a tour e.g., day care program, senior citizen center. Holding the meetings at a local coffee shop may work as well.

Make appointments to see several individuals in each category. Leave enough time to set up the appointments and to hold them before board nominations are due. Remember that many individuals you visit may decline an invitation to serve on your board.

Start by telling the prospective board member about the services provided by the organization.
Tell the individual about the board’s role in setting policy. Give the individual a copy of a board member job description. Make sure you emphasize that all new board members will receive an orientation.

If you are going to recommend that the individual be offered a board position, tell them you will
contact them soon. If you decide that you are not going to recommend them for a position, just be positive and thank them for the opportunity to tell them about your program.

One recommendation I have dubbed the “Noah” approach. If your board is not diverse, try to name two African-Americans or Hispanics or young people to the board at the same time. Then the new individual might feel a little more comfortable.

At each new board member’s first meeting, make the new board member welcome. Make sure to have all present board members introduce themselves. It is not necessary to identify their “diversity.” They will know right away that they are the only program participants or African-Americans without you having to announce it to the entire board.

After the meeting, make sure the Nominating Committee member who met with the individual, now a board member, calls that individual on the telephone. Answer any questions the individual might have. Thank them again for attending. Remind them of the date of the next board meeting.

You will find that diversities disappear. The new board member who may have seemed “different” now is just a board colleague who has an interest in promoting your organization or program.