Do Nonprofit Boards Really Work?
Yes AND no! In the past month, I've had the opportunity to work with directors for 3 different nonprofits who needed support in a crisis. While I wonʻ t name which, some are Idaho-based and others operate elsewhere.
Each has encountered challenges that stem from a lack of knowledge, accountability, and effective leadership. They will not be standing twelve months from now if a number of things donʻt happen soon.
Pain Points
Imbalance of power held by the Chairperson.
Lack of understanding of the basic duties and responsibilities of directors.
Line between governance and operations gets blurred.
The executive director is not supported.
Solutions
Directors should be recruited to the board because they bring a different perspective. We can't get to better solutions without diverse perspectives. If you sit on a board that does not welcome and encourage a diversity of opinions, the boardroom will become stagnant, and the organization will suffer. It is your job to push back if the chairperson wields an inordinate amount of power, especially if they believe they know best for the organization and will not tolerate discussion from different perspectives.
Do you know there are three basic duties that ALL directors must understand and protect?
Duty of Care: Attend meetings and be prepared. Exercise good and independent judgment - no group thinking. We look to experts when needed. Delegate certain authority and duties to staff and document in policy, by-laws, etc.
Duty of Obedience: Obedient to the mission of the org you lead, committed to, and acting in support of the mission, which includes vision, core values, plans, and objectives. It is your job to set appropriate governance operating policies and ensure compliance with by-laws, executive compensation, board policies, etc. Ensure compliance with laws and regulations through staff reports, financial audits, etc. Last but not least, your personal behavior aligns with laws, policies, and regulations.
Duty of Loyalty: Act in the best interest of the institution, not in personal self-interest or at the direction of others. Conflicts of interest are to be avoided, disclosed and managed (e.g. recusal, resignation). Note: we believe itʻs also critical to understand corporate opportunities, not just the protection of assets (risk).
As a director, you ARE NOT responsible for the operations of the organization unless it is a working board. If there is an executive director, they are responsible for operations. They may request the help of the board, but that means you take off your director hat and put on your volunteer hat. Note: Idaho Partners for Good has a working board because we are not in a position yet to have a paid executive director.
Executive Directors are put into ridiculous situations that are unfair and set them up for failure. Most EDʻs wear every hat needed to operate…leader, program deliver, fiscal manager, operations tech, IT troubleshooter, etc. As a director, how often does the agenda include the topic of care and development of the executive director? Itʻs the job of the board to support the ED not just hire and fire them.
Questions We Ask Potential Directors Before Agreeing To Serve On IP4Gʻs Board
Do I fully understand what is expected of me as a responsible board member?
Can I make the time needed to effectively serve on the board, to do the necessary homework, to attend meetings and retreats, etc.?
What qualifies me to serve on this board? What would I bring to the board regarding my experience, abilities, interests, resources, and relationships?
How long of a commitment am I willing to make to this organization?
Do I believe in this organization and its purpose?
Can I support this organization’s executive and executive staff?
Are there reasons I should not serve?
Does this role connect me to/help me fulfill my ʻwhyʻ (purpose, passion)?
If applicable, is my spouse/significant other supportive of my serving on this board?
Got questions about being an effective director? Join us for the next Coffee Chat. If you need board training, an in-depth assessment of your boardroom, or need a consultant to check out your board policies and procedures, we got you covered. Email: info@IdahoPartners4Good.org to set up a free discovery call.