Thinking of serving on a nonprofit board?

Mary Beth Harrington, CVA

Recently, one of our local nonprofits has been receiving some negative media attention.

Since I am not privy to the full story, I cannot commit on the details. Nevertheless, this does provide the opportunity to discuss the work of a nonprofit board.

Board Service

I expect many of you have NOT been a member of a nonprofit board. I can assure you if you have seen one nonprofit board, you have seen one nonprofit board. Too often, individuals are recruited as potential new board members because of their experience on a previous nonprofit board. Unfortunately, this results in misconceptions of what it means to be a nonprofit board member.

What is the Board?

Let’s start by discussing what is a nonprofit board and why is it important. Simply put, the Internal Revenue Service believes that a well-governed nonprofit is more likely to obey the tax laws, safeguard charitable assets, and serve charitable interests. For this reason, when filing for tax-exempt status, a nonprofit must identify a knowledgeable and committed governing body; that is a nonprofit board with a minimum of three individuals.

Since no one “owns a nonprofit” the board represents the community and oversees the nonprofit to ensure that the organization is following its mission and conducting its work in accordance with the IRS and the corporate business practices of the State. Even when a nonprofit has paid staff, the board is the final decision-making body for the organization. The staff oversees day-to-day management of the organization and the board takes a more visionary or futuristic outlook.

Nonprofit Board Top 10 List

As I said, one of the challenges with nonprofit boards is that individuals are often asked to serve on a board following their service on a prior nonprofit board. This assumes that the prior nonprofit board was upholding its responsibilities – which is often not the case.

Therefore, to help articulate their responsibilities to nonprofit board members, I developed a presentation called 10 Things Every Board Member Should Know – But Often Don’t! The following is a summary of the major points.

1 – Board service is a JOB

Being a board member of a nonprofit requires 100% commitment by 100% of the board members 100% of the time. It is more than just attending board meetings and should at times feel like a part-time job.

2 – Board members should stay in their lane

When an organization has paid employees, the board supervises and evaluates the Executive Director and sets their salary but does not have any authority over the other members of the staff.

3 – Board orientation should be required every year

Conducting an annual board orientation reminds the board of their roles and responsibilities. Very often this is done as part of a Board Retreat and includes the development of the strategic plan for the organization.

4 - Board members can be personally responsible for mismanagement

I have seen board members have to write personal checks to cover the transgressions of an organization.

5 - Board management is the responsibility of the board members 

If you are serving on a nonprofit board where a member of the staff is taking the minutes for your board meetings – we need to talk!

6 - Don’t ask your friends to join the board – To ensure that your nonprofit board reflects the community you serve, it is better to invite individuals who bring new relationships, ideas, and skills to the board.

7 - You don’t have to be a board member to be involved

Nonprofit boards should invite individuals with specific talents and skills not currently serving on the board to serve on committees to grow the reputation of the organization in the community as well as to serve as a recruitment source for new board members.

8 - Fundraising and advocacy are part of the job

I have worked with a few boards that did not require their members to do any fundraising, but every board member is compelled to advocate for their organization in the community.

9 - Annual evaluations should be conducted for everyone

Every board member should be part of the evaluation process for the Executive Director as well as themselves and the board as a whole.

10 - Attributes of an effective nonprofit board member

• Commitment to the mission of the organization.
• Understanding of the board’s governance roles.
• Active involvement in board activities, committees.
• Thinking and acting strategically; not involved in day-to-day management of the organization.
• Abiding by the Duties of Care, Loyalty and Honesty.
• Supporting the organization both financially and through advocacy.

If some of the information offered today comes as a surprise to you, feel free to reach out to me. I would be happy to explain it further.

Soliciting your ideas

If you know of a nonprofit that is doing something great, celebrating a success, needs some outstanding volunteers or hosting an event, let me know! This column (aside from a little education) celebrates nonprofits! 

Mary Beth Harrington, CVA (Certified Volunteer Administrator) lives in Tumwater. She travels the country speaking at conferences and to individual organizations articulating issues facing nonprofits. Send your ideas to her at  MaryBeth@theJOLTnews.com