Making the Most of Your Board: Your Expectations & Their Obligations

Nonprofit organizations often overlook the value of a diverse, diligent, responsible, and accountable Board of Directors. Instead, they use Board appointments to reward major donors and/or past lay leaders for their past support, without requiring their ongoing efforts. In short, the Board becomes an honorary group rather than an active working Board with planning and oversight responsibilities, whose members support the organization financially and otherwise. 

At a minimum, management must establish 1) standards and requirements for service as a member of the Board; 2) a protocol for recruitment of new Board members who possess diverse skills and experience; and 3) a document which memorializes a commitment from each Board member to adhere to the standards and requirements established by the organization.

A vibrant, involved Board works with management in many ways. It should:

·      Help compose, if not, review and approve the organization’s Mission.

·      Utilize the expertise of its members to advise management when the nonprofit is engaged in strategic planning.

·      Participate in the recruiting of CEO/Executive Director candidates; it must approve of the candidate recommended by management.

·      Oversee the resources of the nonprofit and monitor its capacity to finance business expenses.

·      Expect, if not require, its members to:

o   Provide financial support for the nonprofit, and engage in fundraising from individuals, for profit businesses, foundations, government programs, etc.

o   Act as Ambassadors of the nonprofit within the community at large.

o   Seek well qualified businesspersons to serve as his/her successor(s). 

Today, a Director/Trustee on the Board of a nonprofit organization assumes responsibility as an integral participant in the governance of a nonprofit organization. In fact, new Board members are often asked to acknowledge their obligations to the nonprofit in writing. These lists may specify how many Board meetings one must attend annually. Ditto as to the nonprofit organization’s programs, events, committee and task force meetings, outreach activities and other public appearances. It’s a lot of work. 

Why? Directors have fiduciary responsibilities like owners of a for profit business. They must secure financial resources in support of the organization’s mission, but they must also make certain that the nonprofit they serve is compliant with all laws and adheres to ethical standards and practices. In order to fulfill these responsibilities, they must be informed and involved.

If your nonprofit has yet to create a separate entity for recognition of major donors and/or volunteers who are not equipped to assume the responsibilities of a Director, do so now! Call it an Advisory Board, a Circle of Honorees, or whatever seems appropriate. Board membership should be reserved for leaders and prospective leaders who are passionate about the nonprofit’s Mission, and have the time, talent and vision to advance the institution’s mission.   

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For more information or assistance regarding your selection and education of prospective Board members, or your expectations and performance requirements of those selected, please contact me at stuart@srsconsults.com or 561-908-2868.