developing a nonprofit board

If you serve on the board of directors of a nonprofit organization, your leadership, vision, and initiative are more important than ever.

Are you keeping up with how the sector is both evolving and being impacted by, well, everything as we head into 2021?

Your nonprofit’s approach to its mission may have had to bend and flex in 2020, especially in the face of so much uncertainty.

Now, of course, some of these variables are a little less uncertain—we know who our next U.S. president will be, a couple coronavirus vaccines seem to have efficacy rates above 90 percent, the machinations of our economy and society are still functioning, to name a few—and what remains undone—racial equity, a divided nation, addressing poverty, climate change, among other issues—is more visible than ever. How is your organization moving forward in 2021?

Now is your moment to lead.

Here are four areas where you and your fellow board members would be wise to focus.

1. Issues on the horizon. Take a deep breath and reflect on this long, arduous year. What are the issues your nonprofit is now facing, both internally and externally? Where has this year strengthened your team’s capabilities? Where has it weakened the organization? How is your staff doing? How are your constituents doing? How are your financial reserves? What do your donors and audiences need from your organization moving forward? How will your mission, and thus program strategy, need to evolve?

Action: Be a knockout board member by raising these issues along with ideas on how the organization might address them. Remember to be solution oriented so as not to overwhelm the staff with yet more problems.

• Recasting your strategy. Face it. No matter what may be in your three to five-year strategic plan—this tool itself an antiquated notion—is obsolete. The world has shifted. Our societal priorities have changed. Your staff structure—and thus capabilities—may have changed. Your constituents may have new needs. Therefore, it is time for a new strategy. Preferably a one-year to 18-month strategy. And be ready to refine it every 90-days.

Action: Spearhead a strategy process—on your own, if you have the skills, or with an outside resource who maintains objectivity and will ask tougher questions.

• Diversity, equity, and inclusion. 2020 surely held a mirror up to our nation to confront our past and the ways racism has been woven into key infrastructures of our society—from healthcare to housing, education to environmental justice. It is up to each of us to undo these injustices and create equity, elusive for many for too long.

What are your organization’s hiring practices? What about board governance? Scroll through your organization’s web site and take a look at the headshots of staff and board members. Do you see diversity in ethnicity, age, gender, and sexual orientation? (And if names and photos are missing, consider adding so we know who you are.)

Do you see ways your organization can take on prejudice and discrimination within the context of your mission? What needs to be dismantled or taken on, head on? Are your programs truly open and available to all, despite economic means? Are you providing programs and services that diverse audiences need and will find of value? Or are they simply initiatives that allow your organization to check a box?

Years ago, working on a project that included qualitative research for an arts organization, a focus group participant who represented a regional school district shared the kind of critique that hits you in the gut. She noted that often times Black, African American, and Latinx students have the sense that all the arts education programs offered by the region’s nonprofits were more for the arts organizations than for them. Ouch.

Action: Identify at least one or two initiatives that the organization can take on and achieve success. Encourage the organization to learning and lifting up the cloaks that may blind some to practices that inadvertently cause exclusion to people of color.

• Build relationships. As you know, your personal and professional network is a tremendous asset to your own life and career. When you join a board, this social capital can also be tremendously valuable to the nonprofit. If you’re passionate about the mission and trust the executive director, resource development team, the other board members, and the programs the organization offers, you’ll want to leverage your network here, too.

You may know potential donors. Or you may know professionals in positions to sponsor an event or underwrite a program.

Action: Have a conversation with the organization’s CEO and development officer to brainstorm who the right prospects are, how best to engage them, and what the next steps should be.

Take initiative. Have the mindset that you and the other board members serve the nonprofit; it doesn’t serve you. The organization’s leadership will appreciate it, especially at a time requiring all hands-on deck. Especially if 2021 turns out to be an awesome year.

Nonprofits often exist in a dynamic environment of shifting goals, priorities, external conditions, and constituent needs. Despite the fact that well-governed nonprofits prepare themselves for an ever-changing world, 2020 has tested the limits of the most stable entities throughout the country with a pandemic, massive unemployment, ever-changing equity and debt arrangements, and, in part the focus of this article, massive shifts in land use. Smaller and midsized nonprofits face these challenges even more acutely. However, this 2020 dynamism also offers new opportunities for nonprofits. At this time, then, charitable organizations, and more specifically, board members of such entities, should consider their responsibility to ensure they avoid conflicts of interest as they entertain creative solutions to their 2020 challenges.

This article will focus on how board members should pay close attention to their role in real estate transactions where conflicts may arise. First, organizations should understand the nature and scope of its board’s fiduciary duties. Second, they should understand the nature of the specific real estate transaction contemplated. Third, entities and their boards should identify whether and where conflicts exist by memorializing an articulation of their process for doing so. Fourth, nonprofits should document their method of minimizing those conflicts and ensuring compliance with applicable laws, customs and traditions, and regulations. Hopefully, following these four steps will not only help charities to properly close significant transactions but also strengthen their governance in the process.

The Nature and Scope of Fiduciary Duty

When serving on a board, members should learn about their duty to the organization and its constituents and continue to update their understanding throughout their term. Most discussions of fiduciary duty start with renowned Judge Benjamin N. Cardozo’s opinion in the landmark case Meinhard v. Salmon, 164 N.E. 545, 546 (N.Y. 1928):

A trustee is held to something stricter than the morals of the marketplace. Not honesty alone, but the punctilio of an honor the most sensitive, is then the standard of behavior.

Meaning transactions between individuals who owe a fiduciary duty either to each other or one to the other are not “arms-length” transactions but rather “insider” or “related” transactions in nonprofits. Therefore, fiduciaries must understand the various duties they owe in this context: (1) duty of care; (2) duty of loyalty; (3) duty of good faith and fair dealing; and (4) duty of obedience. These duties function interdependently, meaning the duty of care primarily concerns itself with the reception of the requisite amount of information in order to make decisions that a reasonably prudent director would make. In short, a board member cannot satisfy its fiduciary duties by ignoring important facts relevant to the organization. Having the requisite knowledge then impacts how a board member fulfills its duty of loyalty because it imposes on the board member the duty to act in the best interest of the organization irrespective of the board member’s personal interest. Sometimes, scholars and cases incorporate the duty of good faith and fair dealing into the duties of care and loyalty. Generally, the duty of good faith takes into account the fiduciary’s subjective understanding of a particular transaction. “Good” faith does not just mean the absence of bad faith but rather encompasses a higher duty to make decisions in the best interests of the organization. Related to the duty of good faith, the obedience duty requires fidelity from the board member to the mission of the nonprofit. In this context, we will look at important considerations for real estate transactions and how these duties play out in board decision-making processes.

Requisite Information Necessary for Real Estate Transactions

With respect to their duty of care, the board member should consider what information they need for a decision relating to a real estate transaction. The information collection requires a review of a board member’s own financial and familial interests, the identity of all “interested” parties, and any necessary incidental transactions.

A board member must identify their own ownership interests and those of close family members, who, if involved, would constitute “interested” parties. A board member cannot excuse failure to disclose such conflicts based on a simple lack of knowledge without proper diligence. Most statutes focus on “full disclosure” of conflicts when considering whether a particular transaction is voidable (capable of invalidation). However, if a board member does not investigate and disclose either their own or close family interests to the board, such disclosures will not have been made and the entire transaction could be threatened, or worse, the organization could lose its charitable status.

Related to the identity of a board member’s ownership interest, boards must investigate the identity of the entities involved in the real estate transaction. These terms may vary depending on the type of transaction involved. Questions to investigate include: (1) what entities are involved in financing the transaction? (2) What affiliates, subsidiaries or parents own the entity involved in the transaction? (3) What natural persons advised, consulted, or otherwise have a relationship directly involved in the transaction? If either the board member or a close family relationship has an interest in any of the identified entities, the interested board member should disclose these facts to the board.

Finally, the board should also consider important incidental aspects to the transaction. For example, does the transaction involve historic preservation, environmentally sustainable improvements, or other special expertise that may implicate board members during the completion of the project? If so, the board should disclose and memorialize such conflicts.

Memorialization of Conflicts

Once the board has identified and disclosed those conflicts, they should memorialize them through both meeting minutes and requisite corporate resolutions when necessary. The board must identify which members of the board are disinterested and which are not and ensure that, when relevant, deliberations are held separate from the interested board members and that a majority of disinterested board members approve the relevant transaction. The board should memorialize the process and use it consistently.

Generally, the process should have three steps, a fact-finding step, wherein the organization and its board members locate the conflicts; disclose and memorialize those conflicts; and agree upon the implementation of deliberation and decision-making processes wherein the conflicted board members do not have influence on the organization’s decisions. Preferably in the corporate bylaws, organizations have implemented such conflict of interest policies long before the discovery of a conflict.

Conflict Mitigation

To minimize conflicts, nonprofits need to demonstrate two important items: (1) disclosure and proper safeguards from interested directors (as discussed above) and (2) fairness to the corporation. With respect to the second item, corporations use a variety of ways to demonstrate fairness, but generally, courts look for the payment of “market rates.” If the transaction is the acquisition of real estate, that can mean a proper appraisal. If it pertains to services related to a piece of real estate, it could mean a bidding process. If board members anticipate a conflict, they can decide between an open, blind, or double-blind bidding process to mitigate potential conflicts. At bottom, however, the board should try to have systems for mitigating conflicts long before they are even anticipated.

Conclusion

While the world has only gotten more dynamic particularly when it comes to real estate in the nonprofit sector, these general considerations should help boards make decisions in a compliant and well-governed manner. Board members should think first and foremost of their fiduciary duties and implement decisions in a manner that documents and honors those duties through clear and effective procedures that provide fairness to their corporate beneficiaries.

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Your nonprofit’s board is one of your most valuable assets. A successful board will play an important part in fundraising initiatives, generate community support, and create energy for your mission.

Although governance models vary based on the needs and goals of every nonprofit, the underlying concept is the same. Your board members should provide key advice and amplify your impact. 

But in order to fully leverage the power of your board members, you need to spend time improving board leadership and building a high-impact team. Without the right leadership in place, your board may lack a unified direction or struggle to move your mission forward.

With many ongoing responsibilities, executive directors often encounter challenges with developing a highly motivated, productive board. 

However, leadership can make or break your board’s effectiveness, so to help, we’ve gathered a few proven best practices for effective nonprofit board leadership, including:

1. Understand your role and your goal.
2. Create structures for a strong foundation. 
3. Set clear expectations and hold members accountable.
4. Cultivate connections and establish a collaborative culture.
5. Respect the value of your board members.
6. Keep your eye on the big picture.

By putting these strategies into action, you’ll be better prepared to steer your nonprofit board in a direction that effectively supports your mission. Let’s get started.

1. Understand your role and your goal.

Running your nonprofit board successfully is about more than just planning retreats and running effective virtual board meetings—though of course, those are important too! 

Taking the time to define and understand your job will set you apart from other nonprofit leaders. And we mean this literally: an estimated 51% of board chairs do nothing specific to prepare for the role.

The exact nature of your role will depend on your title. There are two main titles that have a hand in board leadership, and while they may sound interchangeable, they are actually very different. The “leader” in nonprofit board leadership refers to two primary positions, including:

• The executive director. This individual is in charge of a nonprofit’s day-to-day operations. They do the on-the-ground work of directing employees and volunteers to fulfill a nonprofit’s mission. Typically, this role has less turnover over time.
  
• The board chair. This person focuses more on big-picture goals and initiatives, and they usually don’t have any operational responsibilities. However, one big obligation handled by the board (and the chair) rather than the ED is fiduciary responsibility. Finally, board chairs usually serve for a specified term of just a few years.

The responsibilities of the board chair and executive director do often overlap, and nonprofits will be most successful when they work in agreement. Both are key to running a sustainable and effective nonprofit, which is why clearly defining each role is so important. 

Once you understand your role and responsibilities, identify what success in this position would look like for you. Consider the overall goals of your organization and how you hope to mobilize your board to reach them. You’ll likely have some measurable indicators in place to track the entire board’s progress, but it’s also wise to set personal goals for your leadership.

2. Create structures for a strong foundation.

The best way to ensure long-term growth of your nonprofit board is by establishing a strong starting point. A few important building blocks involve training, communication, and key systems. Having these in place from the outset will save you time and frustration down the line.

First, it’s always a good idea to provide information and training resources to new board members. But even if you’re working with a more experienced board, consider formalizing key protocols so that everyone is on the same page. 

By laying the groundwork for training and development, you’ll set your board members on a path for continuous improvement.

Strategic communication is also a key element of board leadership. We recommend implementing communication best practices including:

• Providing a roadmap. Make sure everyone understands roughly when and how often they’ll hear from you. Sticking to a schedule will help your board stay engaged and help you stay on track.
  
• Surveying current needs. Especially if you’ve just taken the helm of your nonprofit board, you’ll want to assess the current communication plans to see what is working well and what needs to be revamped.
  
• Listening. In any sector, a good leader is one who listens. Establish clear channels so that your board members always know how to approach you. And when they do, practice active listening and take action on their suggestions!
  

You’ll also want to work with your team to decide what tools you’ll use to stay in touch and execute tasks. You could use a group messaging system, email, or something with more features. We recommend dedicated board management software to keep everything in one place.

3. Set clear expectations and hold members accountable.

To be successful, everyone on your board needs to understand what is expected of them. Before joining the board, there should be a frank discussion about the necessary time commitment so that nobody is taken by surprise.

But that should be just the start of the conversation. Set clear expectations for all levels of involvement, including big-picture responsibilities as well as the minutiae of day-to-day tasks. 

Each board member will have their own set of responsibilities depending on their own specialized skills and the needs of your nonprofit. Take the time to define these so that there’s no uncertainty.

And when smaller tasks come up, have a plan in place for assigning them. Many of us have experienced the challenge of wondering, who was supposed to take care of that?

This is especially critical for one-off projects or needs that arise in the middle of a meeting. As Boardable explains in their guide to board meeting minutes, dedicated board software can help you clearly define even small responsibilities so that nothing falls through the cracks.

Once everything is defined, you’ll be well-positioned to follow up with members and ensure they are achieving their individual goals. This will keep the overall board moving in the right direction.

4. Cultivate connections and establish a collaborative culture.

Efficiency is important, but a truly successful board is driven by a sense of community. Strong leaders provide opportunities for board members to connect with each other and engage with the mission.

One way to accomplish this is by holding an in-person or virtual board retreat where members dedicate an afternoon or a weekend to your nonprofit. Depending on your plans for the retreat, this can knock out several goals at once, including strategic planning and culture building. 

For a year-round approach, create a mentor system among your board members. Newer members will appreciate having a veteran to show them the ropes, and more seasoned individuals will enjoy being able to provide advice and expertise. This can also boost motivation and accountability for both parties.

Finally, there’s also the tried-and-true method of doing an icebreaker activity at board meetings. Although some of the ideas out there may be a little corny, they really do help your members engage on a personal level. Even a simple conversation prompt like sharing a favorite memory with the nonprofit can help form connections and get the conversation flowing.

5. Respect the value of your board members.

Your board members lead busy lives and often have limited time and energy. Respect the commitment they’ve made to your nonprofit by honoring their valuable time. 

One key way to do this is by running efficient and well-planned board meetings. Your board members should never finish a lengthy meeting and think, That could have been sent in an email. Ineffective meetings are a recipe for burnout and disengagement.

Luckily, it’s simple for board chairs to avoid those outcomes with the right strategies in place. This guide to board meeting agendas offers some key tips for planning your next meeting:

• Set and distribute an agenda ahead of time. This gives your board members the opportunity to prepare effectively. You don’t want to blindside someone by asking for a project briefing that they weren’t expecting to give! This will also help everyone come to the table with insightful ideas and thought-provoking questions.
  
• Create a logical order. A well-organized agenda will keep your board from jumping around randomly to different topics. You could organize by type of item, by the associated board member, or by importance.
  
• Note goals for each item. For every point of discussion, your agenda should say whether the goal is to inform, generate ideas, or reach a consensus. This makes it clear whether the meeting has accomplished everything you intended.
  
• Limit length. Each item on the agenda should have a prescribed length of time for discussion—keep it as short as possible! This rule of thumb also applies to the length of the agenda as a whole. 

Incorporating these tips into your board leadership strategy will help keep meetings productive and on-track. Ultimately, this will convey that you value your board members’ time, encouraging them to stay engaged.

6. Keep your eye on the big picture.

While it’s important to keep routine responsibilities like meeting planning running smoothly, that’s just a small part of your role.

As board chair, you’ll have a key role in strategic planning for your nonprofit. While the exact nature of each plan varies, it will include measurable goals, initiatives to prioritize, an assessment of strengths and weaknesses, and a roadmap for the future.

According to Bloomerang, your board should meet to revisit your strategic plan every 3-5 years. But as the leader of the board, your big-picture strategic plan should always be in the back of your mind.

As you help your board oversee the details of event organizing, campaign planning, and resource allocation, try to view everything through the lens of your strategic plan. Ask yourself: Is this course of action taking us closer or further away from our organization’s goals?

With practice, this perspective will become second nature, and you’ll be able to confidently lead your board in the right direction.

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Especially in a time of uncertainty for many organizations, nonprofit boards need skilled leaders to drive success. These actionable strategies will help you provide board members with the environment and tools they need to support your mission. Good luck!

Want to take your nonprofit to the next level? Your board can help you do that. A strong nonprofit board offers insights and resources that help the organization solve complex problems and achieve bold goals.

However, recruiting smart leaders and planning productive meetings isn’t enough. Developing an effective board requires strategic engagement and consistent communication.

Your board members won’t be able to offer meaningful help unless your organization makes them feel connected, appreciated and informed. And for them to feel this way, you have to invest in thoughtful onboarding when they join your team and outreach throughout their time of service.

Each board member must understand how their strengths intersect with your needs. They require tools that allow them to share their passion for your work. And they need an authentic relationship with your organization that motivates them to roll up their sleeves when it matters most.

Build a Strong Foundation From the Beginning

Set clear expectations. Ask your board members for help with co-creating a board performance policy. The policy should outline the key ways you expect each member to support your nonprofit. Be explicit about how you would like them to use their resources to elevate your work. Include a copy of the policy in your board toolkit, explained below.

Provide a board toolkit. As part of on-boarding, give new board members the tools to understand and promote your work. Providing digital and print materials such as:

• Your nonprofit’s elevator speech
• One pagers on fundable programs
• Attractive and inspiring flyers and brochures
• Merchandise featuring your brand
• Social media content to share on their channels

Since social media is a key way for them to engage their networks, include social media tools such as suggested post copy, graphics and photos for social posts, profile cover photos, and profile frames. Give your board members content they can use throughout the year and special assets for holidays and campaigns.

Explain their role in your culture of philanthropy. Ensure that your board understands the importance of fundraising to your organization’s financial health and community leadership. Explain the key role everyone plays—including board members—in meeting your fundraising goals. When you share fundraising updates with them, emphasize the connection between your achievements and their individual efforts.

Build authentic connections. Create opportunities for your board members to build relationships with the people inside your organization. This will help them forge a deeper connection to your mission. It will also help them better understand various facets of your work.

Familiarize board members with the populations you serve. The best way to do this depends on the nature of your work, but board volunteering days can make a big impact, emotionally and intellectually.

When appropriate, invite them to staff activities like lunch and learn seminars, happy hours, or quarterly meetings. However, if your board will be in attendance, be sure to notify staff beforehand and give them background information on the members who will be there.

Keep Them Engaged Over Time

Develop a board communication plan. Map out an annual calendar that outlines when and how you’ll communicate with your board. This will ensure this key group of stakeholders doesn’t fall through the cracks as you reach out to key audiences. It will also keep you accountable to sending them regularly scheduled updates.

Don’t just share major announcements and board meeting materials. Reach out with compelling news and updates from across your organization. Your communications will keep them interested while also reducing any blind spots they may have about how you operate.

Create an email newsletter. Make an email newsletter one of the key communications in your board communication plan. Your board members are already accustomed to building and maintaining relationships via email, so use this important channel to share helpful tools and information with them. By repurposing your nonprofit’s existing communications when possible, develop a brief, attractive newsletter with content such as:

• Relevant news stories
• Recent press releases
• Top-performing blog posts
• Short, simple program updates
• Major fundraising achievements
• Expressions of gratitude (highlighted below)

Keep asking for input. Request your board members’ help when you see a connection between their resources and your needs. Just be sure your leadership team is aligned on the ask before you reach out.

For example, ask board members for help with donor identification and cultivation. Be open, letting them know that you would be grateful if they’d strategically reach out to any contacts who may have an interest in your cause. Invite them to participate in conversations with like-minded donors. They can strengthen your outreach to donors with similar backgrounds.

And if other opportunities come up where board members can make a meaningful difference, don’t be afraid to ask. If you don’t ask, they may not realize how they could be supporting you.

Honor and thank your board. Weave gratitude into all of your board communications. When new members join, proudly announce their appointments internally and externally. This will demonstrate your appreciation to new members, acquaint staff with the board, and elevate your organization’s thought leadership in the public eye.

Share success stories with your board often, connecting mission impact with their dedication and support. Help them see themselves among the heroes in your organization’s story.

Follow your board members online to stay in-the-know about what’s going on in their lives. Connect with them on LinkedIn and create Google alerts for their names so you don’t miss anything. Congratulate them on their accomplishments to show that you are invested in their success.

Commit to Invest in Your Board

An effective board helps a mission-driven organization reach new heights. But to build an successful board, you must develop cohesive communication and engagement plans.

It’s crucial to reach out to your board with transparent, informative and authentic communications. And you need to provide every member with tools and opportunities to share your work with their communities.

The good news is that if you invest in creating an environment where your board can thrive, you’ll also be helping your nonprofit’s mission thrive.

There are volumes written on staying engaged with your professional work, how to motivate employees, and communication in the workplace. That’s great for businesses, but how do nonprofits keep volunteer board members engaged in their work? Busy professionals who are donating their time to a cause want to do well in their board service, but they may need a little help. Here are some ways to keep them excited, involved, and effective with nonprofit board work all year round, even if they are remote or only meet quarterly.

Make It Personal

Humans are hard-wired to pay more attention to human faces than any amount of text or audio presented in a meeting. If many of your board members are remote or rarely meet in person, it is crucial to maintain that human element in your communication and meetings.There are a number of ways you can do this. Provide a people directory with everyone’s photo to help new members feel familiar with the other board members. If you have remote meetings, ask everyone to use their video cameras during the meeting. You might be surprised at how much this simple measure does to personalize the experience.

Create even more rapport by developing a buddy or board mentor system. Sometimes just the accountability of knowing even one person will be working with you on specific goals or looking for your attendance at the meeting is enough to get that extra effort from a board member. Additionally, it is a great opportunity for members to learn from each other and discuss how they can advance initiatives. This works especially well at knitting a geographically far-flung board closer together.

Communicate, Communicate, Communicate

Have you ever heard the advertising adage that a person needs seven impressions of your brand before it “sticks” in their mind? Obviously, you don’t want to bother your board members seven times about every initiative, but it is hard to underestimate the value of multiple nudges. Some board members will favor email while others may prefer to keep tabs on goals with your board portal. Regardless of the medium, don’t be shy about sending a variety of updates, reminders, and nudges for key deadlines. The first reminder might catch a board member at a busy time, but the second could allow them to take action on the goal.

It isn’t enough to just communicate regularly, however. It is also helpful to make the communication as specific as possible. Many people will ignore an email to the whole board, but it is much harder to sleep on an email that starts out with their name and has information specific to something that board member is working on at that time. Be sure to keep it balanced between reminders or asks and recognition or celebration. If every time you contact your board members it is to nag them about some initiative, they will quickly learn to dread (and eventually ignore) your communication. Everyone appreciates someone noticing their hard work and small successes. Get to know your board members well enough to know if they’d appreciate a public shout-out or prefer a personal note.

Progress Should Be Visible

Similar to our propensity to react to human faces, people love visually scannable information when possible. There are two big advantages to this. First of all, with publicly visible graphs or charts, it is simple for your busy board members to glance at the dashboard and see how things are trending. You could send a three page report that no one has time to read, or you could provide three visuals that get eyes on them every time.

Second of all, visuals have a wonderful way of “gamefying” board service.Is it halfway to your big event and only a fraction of the tables are sponsored? Time to kick it into high gear. Are you just dollars away from reaching the campaign goal? Every board member wants to be the one that closes the gap. Celebrate progress and ask for help as transparently as possible with a real-time, visual representation of your goals.

Keep It About the Mission

We all know about creating “mission moments” in a meeting to keep board members in touch with the effects of their work. You can take this a step further to increase the connection. Have board members take turns every month reporting on a specific chapter or organization and some interesting results they’ve had in the recent past. Board members also feel more connected to something that they can articulate themselves. Research activities you can do with your board, such as practicing elevator pitches of why they’re invested in the organization, brainstorming sessions on the vision of the nonprofit, or interviewing each other about how they came to the organization and summarizing it in a sentence or two for the board. Not only do activities like these get board members thinking about why they volunteer their time for board service, it also offers great discussion material during meetings about the direction of the organization.

Connection Is Crucial

It can be a huge challenge to keep a group of perhaps spread out, busy, volunteer board members thinking about their board service between meetings. It’s not impossible, though. With some effort around building rapport, making information easily digestible, and motivating for progress, your board can stay a productivity machine all year long.

 

About Boardable:

Boardable is an online board management portal that centralizes communication, document storage, meeting planning, and everything else that goes into running a board of directors.

 

 

So you want to join a nonprofit board. Whoa, back up, really? That’s terrific, but can we explore the why before we get to the how? Hopefully you are driven to seek a seat at the table in order to take personal action using your experiences, skills and connections to solve a problem or address a challenge in your community or anywhere else on the planet. Think hunger, homelessness, poverty, a particular health crisis, uneven educational opportunities, unsafe relationships, aftermath of wars, as a start. Let’s begin with the assumption that you are joining others driven by the same degree of passion. If they aren’t . . . that is a topic for another day. You are going to develop an intimate knowledge of how your fellow board members analyze opportunities, how they communicate, what talents they bring to the table, and how you might learn from them, and utilize their connections to expand your own network. These are good things, and you will be bringing your own value adds to share.

Do you know what it means to be a board member for a public charity? Do you understand the fiduciary, fundraising, volunteering and advocacy responsibilities that are expected by law and by the public? Not all boards introduce and onboard with the same degree of clarity, so you need to know what kind of a board and what kind of participant you want to be. There are online resources to learn more and help you answer these questions, and in some communities you will find organizations that offer related workshops for preparing to become a nonprofit board member.

When you join a nonprofit board, you will have motivating ideas of how you can support the organization and even what you might gain by doing so. You may rightfully anticipate the connections you can make to further your ability to put your passions to work with a team of like-minded individuals. Board service can expand your business and community networks, as you learn from others with a variety of experiences that have shaped their attitudes and paths. You may see board participation as a chance to stretch your leadership style in ways that everyday life and work experiences don’t readily offer. You may be hoping for a place to leave legacy footprints, making a purposeful difference where it matters most to you. The right board match can help you achieve these goals.

On some corporate boards members can be compensated for their participation. “Compensation” looks very different and special for nonprofit board members. As a nonprofit board member you are expected to make a financial contribution, beg your friends to donate as well, spend hours (mostly evenings) in meetings, buy tickets and tables to events, and operate often without an exit strategy of when to step away from this “privilege.” If you are not deterred, then thank you! Nonprofit board service can be the most intense, important and satisfying volunteer commitment you can undertake. And quite honestly, there are many, many benefits you should enjoy as a result.

Don’t shy away from the win-win of board service. If you are going to spend that much time, energy and philanthropic dollars, you better get something in return. It can be a warm feeling in your heart, a warm lead to a new customer, or the satisfaction that you actually took action to solve a thorny problem. Go for it.

Now as for how to join a board, please keep in mind that there are a variety of nonprofits just as there are a variety of for-profit businesses. How you proceed to join a “Fortune 500” nonprofit board will be different than the path to joining one that is a startup. The bigger the budget of an organization, the broader its geographic reach, the more “prestigious” the current board, the more likely it is that you will need to be willing to write a big personal check or deliver a sizable donation from your company on a regular basis. You may already be a significant donor. You may already have a large reputation for direct involvement in the organization’s mission or in a related area.  The closer to a Fortune 500 type nonprofit, the more likely it is that you will be head-hunted for the board because nonprofits of this size and scope understand that many others are fishing in the same pond for potential additions. They have determined that it is worth the investment to professionally search for key thought leaders and those who could add cache in some way. If you want to be considered for one of these boards, you likely already know how to go about it.

The path to joining any nonprofit board, but certainly one of a small to mid-sized or startup organization, must start with passion. Ask yourself, “What do I care about; what keeps me up at night?” and then look for organizations working on solutions. If your passion is solving a problem that is halfway around the world, you are honestly less likely to find a board opportunity in your backyard, but you can certainly find ways to donate money or volunteer your time. For example, Google “solving water pollution.” You will find organizations that tell you how to donate, volunteer and advocate to this end. This may never lead to a board position, but you might find your engagement to be equally satisfying.

The closer your interests are to local problem solving, the better the chances of eventual board service.  You want to get to know an organization from the inside as early as possible to confirm that this is a place where you want to invest your time and resources more deeply. Maybe you already have your eye on a local nonprofit. Explore their website and see who is on the board and who is in leadership on staff. You may already have connections so that you can learn more about how the board operates and what the expectations of a member. In the meantime, note any volunteer opportunities posted on the website or reach out to see if there are ways that your skills (marketing, HR, accounting, legal, etc.) could be utilized on a committee or special project. See if there is an event where you could participate in its planning or execution. Ask if there is a need for advocates to speak out or write on behalf of the organization. All these activities will give you a chance to get to know the organization and, equally important, give the board and staff a chance to know you and what you can bring to the table.

If you have the interest but don’t have connections or don’t know where to begin, don’t despair. Read local media with an eye to organizational leadership commenting on issues you care about. Use LinkedIn, Facebook, Instagram and Twitter to see which organizations and people are engaged. See if there is a volunteer connector organization or local affiliate of Points of Light in your area and explore volunteer opportunities. Ask local thought leaders in government, civic organizations, business networking groups, and faith-based institutions for names of nonprofits doing good work and introductions to learn more.

After spending thoughtful time, if you are still interested in joining the organization’s board, let it be known. Usually a conversation with the Executive Director, Board Chair, Governance Committee Chair or a key program officer will get the ball rolling, but it doesn’t guarantee an instant or eventual place at the table. The best boards aren’t just looking for warm bodies with deep pockets, to be crass. The best ones are looking for new additions who are passionate about the mission; can fill particular skills and knowledge gaps around the table; bring diversity of opinions, backgrounds and experiences; understand what their role will be; recognize they will be expected to make financial contributions and introductions to others; anticipate that there will be personal and professional fulfillment; and are ready to roll up their sleeves and make a difference.

Not every date leads to a permanent lasting relationship, but good things will always come from getting to know key nonprofits and the boards that lead them. Enjoy the search for a great board to join. It’s out there, and the benefits are going to be as personally rewarding for you as they will be to the nonprofit.

Members of a nonprofit board of directors are wonderful people. They are often accomplished professionals, visionary leaders, and passionate supporters of the cause. Interestingly, these characteristics of excellent directors can also set the stage for tension in the boardroom. Let’s look at four tips for defusing any conflicts.

Clearly define roles and rules of conduct.

The most effective boards and meetings have one thing in common: clear expectations. Board conflict prevention starts with everyone knowing who is in charge and what is expected. I encourage boards to actually make a board member commitment “contract” that spells out the roles and responsibilities of being a director. There should be a similar description for each of the board officers, too. That way, no one is confused about who should be reporting on which areas and who is responsible for certain decisions. Make sure there are also procedures spelled out for meeting discussions and votes. If everyone is aware of the rules ahead of time, it is much easier to address conflict later.

Be hard on ideas, not people.

This is a great mantra I learned from our board governance coach, Kim Donahue. It’s all about cultivating a culture that can pick apart ideas as needed without making it personal. This is a fairly intuitive way to behave, but reminding board members about it in a fun informational session can go a long way towards boardroom decorum. Additionally, make sure that your board is building in enough social time to grow real trust and respect between members. It is much easier to express an opposing view if you believe that your fellow board directors all have the organization’s best interest in mind.

Enlist the troublemakers.

I use the word “troublemakers” loosely here to mean the people who might be more inclined to dominate a discussion or always be the first to offer their opinion. Sometimes this happens organically as other directors look to a few strong leaders to see how they feel about an issue before weighing in. If you find your meetings always revolving around the opinions of one person, elist this person to lower tension in the boardroom. Try pulling them aside and saying something like, “Brenda, everyone values your point of view so much. I wonder if we could try an experiment in this meeting. I really want some feedback from the others on this agenda item, so it would be interesting to see what would happen if you withheld your ideas for a minute to see what they come up with.” Win the more opinionated board members over to your side and you might find that the people who were previously a challenge become the peacekeepers.

While some dissent is healthy, everyone needs to come together after a vote.

 Disagreement is a part of discussion, but everyone should understand that the vote on the motion should be the end of that discussion. The board will vote yes or no, and all board members should know that is the time to accept the decision of the board. This can sometimes be difficult for board members who disagree. Consensus means that even though I may disagree, I can support this decision because the majority of board members believe it is the right thing to do. It is not a bad idea to remind board members that the decision of the board should be supported by everyone in the room. Being considerate of dissenting opinions will go a long way toward resolving any differences.

Conflict in the boardroom can take time to resolve.

Don’t be discouraged if it seems like certain disagreements keep flaring up over and over. There will be times that people simply don’t like each other that much, and that’s okay. As long as you have started implementing the four steps above, you will be on the way to reining in any disputes. Don’t be afraid to periodically take a step back and ask board members what is working and what isn’t. With some careful thought, board feedback, and proactive practices, your board will be on the right track.

 

About Boardable:

Boardable is an online board management portal that centralizes communication, document storage, meeting planning, and everything else that goes into running a board of directors. Founded in 2016 by nonprofit leaders and founders, Boardable has a mission to improve board engagement for nonprofits. Boardable is based in Indianapolis, Indiana.

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:

Board Responsibilities	Staff Responsibilities
Manage the strategic decision-making process	Provide information to assist in the decision-making process
Review data	Gather, analyze and present data
Set priorities and establishes goals and objectives	Develop action plans to implement goals and objectives
Establish relationships and seek support from external stakeholders such as donors and related organizations	Provide research and document results of those solicitations and relationships
Evaluate risk and review policies and procedures for compliance with legal and regulatory requirements	Establish procedures and systems for carrying out activities
Approve budgets	Recommend allocation of resources
Monitor progress and quality of programmatic and administrative support activities	Direct day-to-day operations
Recruit, motivate, and thank volunteers	Supervise staff and volunteers
Establish criteria for measuring the effectiveness and efficiency of the activities	Present data and recommend revisions to programming

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.