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Your Board Members Have Got to Go (eventually)…

I was talking to a friend the other day about his involvement with a local nonprofit organization. He proudly noted that he has been on this organization’s board of directors for over 20 years, and was taken aback when my jaw dropped and I exclaimed,  “WHY WOULD YOU EVER??” Once I recovered from my shock, I explained to my friend that board service is not intended to be a life sentence, and that he and the organization’s leadership are doing the nonprofit a disservice by allowing board members to stick around that long. I have heard several arguments in support of long-term or even permanent board service. One is that long-term board members are valuable because they bring institutional memory that can help inform current and future decisions. Another is that board member recruitment is so challenging that it’s easier to just hold on to the board members that are willing to stay involved. The most egregious reason I’ve heard is that it’s easier to manage a nonprofit board when there are fewer new personalities to learn and navigate. Seriously, friends. While some reasons may sound better than others, they’re all just excuses for bad nonprofit management behavior. Simple and plain. First of all, it floors me that anyone would want to serve on a nonprofit board for 20 years…heck, I’m amazed that I am able to get some of my board members to serve the six years that are allowed by my organization’s bylaws. Board service is a volunteer duty that should have a fixed start and end point. Board members should know what to expect, what is expected of them, and understand that they are not intended as permanent fixtures in the organization. Next, the nonprofit executive director who allows herself to slip into this sort of comfort zone with her board is failing at one of the most important leadership qualities there is: VISION. It is the executive director’s role to lead the nonprofit, and one of the most important aspects of this role is ensuring that the future of the organization is secure. The expertise your organization needed when it first started 5 or 10 years ago, for example, is not the same expertise it needs today. Nor should it be what you are looking for in a board member 5 or 10 years down the road. Nonprofits change, grow, and develop over their lifespan…and this requires a changing, growing and developing board to govern it. Finally, and most importantly: I have never seen a set of nonprofit bylaws that intentionally allow for permanent board service. Every set of nonprofit bylaws includes language about board member election, terms, and most also include language about term limits. The bylaws are the primary governing document for any nonprofit, and failing to govern the organization according to the provisions therein is a huge problem. Two quick asides:  The truth is that most board members do not keep track of their terms and when their service is supposed to expire. They rightfully rely on the organization’s executive director (or whoever the leader is in an all-volunteer organization) to make sure this issue is managed correctly. So, if the leader fails to pay attention or doesn’t prioritize board management, board members can easily be stuck with the organization far longer than they ever intended. And the organization can be equally stuck with them. So friends, please take some time to review your bylaws and see what they say about board member terms. If you’re not following these provisions, figure out how to fix that. Depending on how bad the problem is, you may need to create a phased solution…but ignoring the issue of permanent board members will only create more problems in the future. Nobody wants a stagnant nonprofit organization. Keeping your nonprofit fresh and current involves more than just introducing a new program or initiative every now and then. Preventing stagnation starts with the organization’s governance, ie: the board of directors. New blood creates new ideas and new opportunities. Don’t get so tied to any of your existing board members that you can’t imagine the organization without them. That’s contrary to best practice and harmful to any organization. Good board management is good nonprofit management. Do this part right and everything else in your organization will be better for it. I promise.

This is (supposed to be) Serious Business

I can’t tell you how many times I’ve been subjected to this type of nonprofit board recruitment conversation: “Hey, L. I’m on the board of XYZ Organization and I’d really love it if you’d consider joining. There’s no real work to do, just show up at a few meetings. No, really, you don’t have to do anything…oh, but their events are really fun! Shall I tell them you’re interested?” Umm….how about NO. Sounds like a total waste of time to me. And if this is how your organization approaches board member recruitment, please step into my office because we need to talk. Don’t Sell Your Organization Short….The Board is There to Work  A nonprofit board of directors is the most important group of volunteers an organization has. The board of directors is the governing body. The board is ethically, fiscally, and legally responsible for everything the organization does. Equally importantly, this group plays an integral role in creating and nurturing organizational culture – and this can be either positive or negative.  While board members are not typically involved in running the day-to-day operations, they are responsible for setting policy, hiring & managing paid executive staff, and overseeing the organization’s finances. Board members should also be the most vocal advocates for the nonprofit they represent, working to bring increased visibility to the organization’s programs and services and expanded funding opportunities to sustain the work.  How is it possible that all of this responsibility can be condensed into “just showing up at a few meetings”?? How can these important duties be dismissed as “not having to do anything”?? I don’t know…but it happens all the time.  A functional and cohesive board can be the lifeblood of a successful organization. But a board that is not fully aligned and committed to the very real work that comes with running a nonprofit business can cause significant issues for the organization’s health. These issues can include negative community reputations, reduced funding opportunities, and even a loss of the nonprofit status in the most egregious of cases.  So, what are some best practices when it comes to building a strong board of directors? Here’s a few of my tried and true strategies: Always remember, a nonprofit is a business. Every nonprofit is born out of a passion to do good. But, if everyone is busy building and expanding services and programs, who is keeping an eye on the business? A nonprofit board should be recruited based, at least in part, on the business expertise that is required to run a successful nonprofit organization. Sure, we all want our board members to participate in our events and help implement our programs, but their first and most important duty is ensuring a healthy business.  Let your bylaws be your guide. Every nonprofit should be governed according to its bylaws, and this includes the recruitment and service of its board. When recruiting board members, it is important to have a clear understanding of what your bylaws say in terms of the board’s size and composition, board members’ terms of service, and any other rules governing how the board manages itself and the organization. Following your bylaws is not only a good business practice, it can also help lead the organization through tricky governance issues that arise from time to time.  This is not a place for all your friends. Too many nonprofit organizations rely on the personal networks of existing board members to recruit new board members. What tends to happen in these cases is that the board becomes homogeneous, both in terms of representation and culture, and this is never good for the longevity of an organization. While it is perfectly fine to recruit from board members’ personal networks, this should not be the primary mode of identifying the people who will govern the organization. More important is identifying the right people, which should be done in accordance with the mission, goals, and business needs of the organization.  Always remember your mission. In addition to recruiting according to the business needs of the organization, it is also imperative to have board members who wholeheartedly support and believe in the mission. It is not enough to identify people with great connections or deep pockets, it is much more important to recruit board members who believe in what the organization is working to accomplish. It is only through this mission connectivity that you will get the most out of your board members in terms of commitment, participation and advocacy. Clear expectations should lead the way. If you do not have a board member job description, get one in a hurry. Board members should come to your organization with a clear understanding of their role, duties, and what is expected of them. Does your organization have a board member giving requirement? Do you want board members to perform volunteer work in addition to attending board meetings? Be clear and up front with expectations so your board members join the organization with a full picture of what they will be responsible for.  The worst thing you can do as a nonprofit leader is diminish the important role of your board of directors. And the next worst thing is having existing board members who fail to understand or embrace their fiduciary and legal responsibilities to the organization. Remember: This is (supposed to be) serious business. Treat it accordingly.