#246 Musings Beyond the Bunker (Wednesday January 12)
Good morning!
THE RESPONSIBILITIES OF NON-PROFIT BOARD MEMBERS
This is the latest in a continuing series on non-profit boards. I have had a lot of response to the prior summaries of the duties and responsibilities of board members. Some have asked for a specific list of “dos and don’ts” for non-profit board members. I have read a lot on the subject and have come up with my list, with the help and advice over the years of David Mersky and Ed Nahmias:
DETERMINE MISSION AND PURPOSE
Establishing or reiterating the mission of the organization, in coordination with all stakeholders (those served, those that fund, societal needs)
Mission will drive the priorities of the board and management.
The mission statement should be reviewed periodically to be useful, honest, valid and current
SELECT THE CEO
Arguably the most important job of the board.
The CEO should be chosen based upon objective management, fundraising, and other measures, but also in connection with the current culture and circumstances, and perceived needs
There should be a succession plan and redundancies in tasks throughout the organization
There should be an emergency transition plan
SUPPORT AND EVALUATE THE CEO
There must be mutual respect and distinct responsibilities assigned to both the CEO and the board
There should be annual, written performance assessment by a small HR or similar committee
As important as review is support. The board MUST support the CEO and not become embroiled in internal management issues. It must be predictable, cannot micromanage, must allow the CEO to act and must have his or her back.
ENGAGE IN EFFECTIVE STRATEGIC PLANNING
Regularly revisit the activities of the organization, translating mission into goals and objectives
Recommend priorities for physical and programmatic expansion (or closure)
Once strategies and desired outcomes are established, continue to focus on the “big picture” while management deals with implementation and operational matters
Report on the plan periodically through the year
MONITOR AND STRENGTHEN SERVICES
Help staff in reviewing what are the goals and how to assess effectiveness
Have a committee structure that supports programs
ENSURE ADEQUATE FINANCIAL RESOURCES
Everyone must participate in development
100% of the Board must participate
Development committee must help identify sources of funding, open doors, solicit gifts
Support planned giving
Steward relationships and give thanks regularly
PROTECT ASSETS AND PROVIDE FINANCIAL OVERSIGHT
Fiduciaries must safeguard the financial health of the organization
Ensure policies to balance short and long term needs
Invest endowment and long-term funds wisely
Verify systems and practices are “best practices”
Provide risk-management review
Ensure adequate reserves
BUILD A COMPETENT BOARD
Imagine continuing what you have and strive to make it better
Keep track of strengths and skill sets of existing board and try to fill holes in skills
Diversity, age, gender, demography
Establish clear expectations
Annual self-evaluation of board members and follow-up by governance committee
ENSURE LEGAL AND ETHICAL INTEGRITY
Review legal structure and bylaws regularly to ensure legal compliance and appropriateness in current realities
Understand the law and be transparent and accountable
Adopt policy of transparency
Adhere to conflict-of-interest policy
ENHANCE THE ORGANIZATION’S STANDING
Speak to friends and publicly about the work of the organization
Be ambassadors to the world
Try to identify opportunities for CEO and others to speak at conferences or write articles
Be able to tell your own story of involvement
Participate regularly in events
AND WHAT YOU SHOULDN’T DO
YOU CAN’T MANAGE. ONLY MANAGEMENT MANAGES
Set policies, provide some guidance and let competent management do their job
If there is disagreement on management decisions, handle in private
STAY OUT OF PERSONNEL MATTERS
The only person the board should review is the CEO. Everything else is merely advice.
Communications with staff should only be with the CEO
LEAVE YOUR EGO AT THE DOOR
It’s not about you. Don’t take offense.
Be open with the board chair or the CEO if you have issues with staff or direction
DON’T BE STUBBORN
Be prepared to be proven wrong—be open to a healthy conversation
Disagree gracefully but in the end support the outcome
Those are my rules. Curious about other people’s experiences…
Have a great day,
Glenn
From the archives: