To Board or Not to Board A Philosophical

To Board or Not to Board A Philosophical & Practical Look at A BIG Question Peg Tallet principal, Peg Tallet Strategic Consulting

What makes a NFP great? • A clear, well-articulated mission that drives everything its staff, board and volunteers do • A realization that fund raising is part of the mission – a big part! • A top flight professional staff with both mission-focused skills and business acumen • A board that knows its place, role and value, has great passion, connections and discretion

What makes a board great? “Boards and board members perform best when they exercise their responsibilities primarily by asking good and timely questions rather than by ‘running’ programs or implementing their own policies. Board/staff relationships are what they should be when mutual expectations are agreed upon and issues and responsibilities are clearly defined. ” Richard Ingram, in Ten Basic Responsibilities of Nonprofit Boards

The Board Member • Place – at the board room table, on the front line at donor/public focused events, in front of the desks of the professional staff, not behind it • Role – care deeply and show it, talk about the organization well and often, make connections on its behalf, give money, time and counsel • Value – be the face of the organization in your personal community, help the professional staff and volunteers, but don’t try to run the organization

What am I getting into? “Being a trust holder of the community means serving as would a good steward. The good steward views the community as a gift from previous generations, but a gift with strings attached. One is obligated to pass the gift to future generations in a better state than that in which it was received. The community is both our inheritance and our legacy. ” National Association of Community Leadership, Taking Leadership to Heart (1996)

Put the commitment in committee Going on a non-profit board should be a lifetime commitment! When you join, you should do so with the expectation that your involvement will go way beyond your term(s) on the governing board

What does should a NFP board do? • Serve as guardian of the public trust • Oversee the financial operations of the organization • Maintain the legal and ethical standing of the organization and its staff • Provide leadership and strategic direction for the organization • Set policy but step back and allow the staff to implement that policy • Ensure that an organization remains accountable to its donors and to the general public

Which board is right for you? Things to think seriously about: • • Do you have an affinity for the organization and its mission? Is the topic of importance to you? Are there articulated expectations for your time and money? Would the time and money you are about to dedicate to the cause make you happy? Satisfy something in your soul? Do your skills, contacts and interests align with the organization’s needs? Does its work style mesh well with your own? Does the institution’s board and staff reflect a level of diversity comfortable for you? Is there an enforced conflict of interest statement for board and staff?

Legal, ethical and moral responsibilities • Governance = Risk • You have a right to expect transparency and to understand the extent of risk board members are subjected to • (Important question: Does the organization have officer & directors insurance? )

What must a board do? • Define and monitor the long-term strategy by which the organization fulfills its mission • Periodic checks on the performance of the team in implementing the strategy • Approve budgets, financial plans and financial statements; approve capital allocations and expenditures; monitor and ensure the integrity of the organization’s financial reporting processes • Balance constituency interests in a manner that is consistent with the mission

More to do • Thoroughly understand manage risks • Ensure compliance with all applicable laws, regulations, policies and ethical standards • Assist in obtaining resources through making personally meaningful financial contributions, providing access to those who can support and assist staff in cultivating and soliciting donors • Establish the composition of the board and its committees, and determine governance practices

Giving is very time consuming • Why should already busy people serve on a board of a not-for-profit? • Desire to make the community/world a better place • Passion for a cause • Transfer your skills and contacts to improve the success of an organization and its mission

Resume Builder OR Life Changer • Making board service work for you is okay, but you have to distinguish yourself as a great board member to do so • Amazing networking opportunities – must go both ways • You must give more than you take … intellectually, emotionally and financially • Relationship building can go both ways but not as a primary motivator

Give, Get OR Get Out • You must provide financial support – annual gift, patronage of fund-raising events, capital or special campaign donation, and possibly a planned gift • You must help the staff and board create relationships with potential donors and cultivate those relationships • If not, you must resign from the board

Do your due diligence – diligently!

High Functioning or Hardly Functioning?

Something(s) to consider … • • • Can I see the strategic and operating plans? Can I see the P & L on fund raising events and programs? Can I meet with several members of the board? How long is a term of service? Is there a limit to how many terms a director can serve? What is the average length of service of existing board members? Who provides legal counsel to the organization? To the board? Is that person paid or providing pro bono services? Are they on the board or on the staff? Who audits the organization? What is the Guidestar rating? If not exceptional, can the organization tell you why? Do staff leaders, other than the CEO, attend and report at board meetings?

Before you say yes • Volunteer in a meaningful capacity for the organization in a way that allows you to – Get to know how the organization fulfills its mission – Become familiar with the leadership --- both staff and volunteers – Discover how the organization works and if it is in sync with your interests, particularly with respect to: • Oversight • Welcoming new ideas and ways of doing things • Inclusiveness • Ask questions and expect answers!

BEWARE Inviting a person previously uninvolved in an organization to join the board is either an act of desperation or a cry for help … or both • Almost one-half of nonprofit leaders report that it is difficult to recruit new members. • Almost one-third of chief executives report that they do not have the right board members to effectively govern their organizations. • (2012 Board. Source Nonprofit Governance Index)

Sufficiently concerned? • Say yes if all of your questions are answered and you honestly believe you can help the organization • Say yes if you believe the NFP provides valueadded to the community • Say yes if you have the time, connections and resources to fulfill your obligations

Sufficiently motivated? • Go for the gusto! • Non-profits make their communities … and the world … a better place! • You will be greatly enriched by the experience as will the NFP you choose to work with! • Let me know if I can help you make a decision and or provide external engagement counsel to the organization you select!

Peg Tallet Principal Peg Tallet Strategic Consulting 248 -259 -5000 mtallet@ymail. com