Governance for Nonprofit Organizations - Quick Tips

Governance for Nonprofit Organizations

From Little Leagues to Big Universities

  

BOARD OF DIRECTORS/TRUSTEES:
PERSONAL QUALITIES OF EFFECTIVE BOARD MEMBERS

ONLINE VERSION: TABLE OF CONTENTS Introduction Governance Documents Board of Directors/Trustees: Board Responsibilities Legal Obligations of the Board Personal Qualities of Effective Board Members Board Structure and Operation Effective Meetings Building and Maintaining an Effective Board Making Board Service Fulfilling Guides and Tips Sample Meeting Rules Agenda Suggestions Tips for Basic Minutes and Reports Governance for Nonprofits: From Little Leagues to Big Universities is also available as a free download in PDF form. Right-click here to download.

a. Fundamental Characteristics

Great boards don't just happen. It takes a lot of work to make a board effective. That work begins with selection of individual board members who, regardless of the type of organization, have certain fundamental characteristics:

• Vision and Leadership: the ability to see the big picture, and to help create and, if necessary, re-set strategy and policy to help the organization achieve its mission.
• Advocacy, Stewardship and Integrity: the ability to serve and promote the interests and goals of the organization without forgetting the interests of the public and the organization's intended beneficiaries.
• Knowledge: the willingness to become thoroughly familiar with the mission and how the organization actually carries out the mission day-to-day through its organizational structure and operations.
• Personal Commitment and Diligence: the willingness to take the necessary time and make the necessary effort to fulfill director responsibilities, including understanding strategic, financial and operational issues facing the organization, asking questions and following up as needed, engaging personally with the organization, whether through financial support, advocacy, networking, personal service, or other personal support activities, and staying current on sound governance principles and working to apply them to the organization.
• Collegiality: the ability to work well with others and to show respect for the ideas and views of fellow board members and staff; the understanding that boards operate as a body.

Beyond these fundamental characteristics, nonprofit boards typically seek directors with particular backgrounds or types of expertise, financial capacity, positions in the community, or access to key constituents or professionals that can be helpful to the organization. In recent years there is a trend for boards to seek individuals representing specific ethnic or minority groups, or women, so that the board has an ethnically or gender diverse membership. One effective way to help make sure that boards are sourcing directors who meet the needs of the organization is for the board, or nominating committee, to create and maintain written criteria for board membership focusing on key characteristics being sought and, in addition, to conduct an annual review of the strengths and weaknesses of the existing board so that future recruiting can focus on the organization's needs. (The Society website has samples of written criteria that have been developed by some nonprofit boards.)

Having a good understanding of a board's criteria for membership, and the specific reasons why the organization has selected you as a director, can go a long way in helping you determine whether service on a particular board is right for you. Don't be afraid to ask! This is particularly true with respect to financial commitment expectations, or for operating boards, anticipated time commitments. Understanding these matters at the outset can help keep embarrassing situations from arising as a result of mutual expectations not being met.

management. Sometimes the sheer size and diversity of members on a board may make communication and consensus difficult. Sometimes the number of "old guard" board members may inhibit participation by new members. Occasionally, lack of staff may limit time and attention that are given to directors or to board matters by management. While none of these issues may be enough to discourage you from joining the board of an organization you care about, understanding how things are can make it easier for you to understand the nature of the task facing the board in achieving good governance.

Similarly, understanding the board dynamic, how board members work together and with staff, is an important topic to explore in advance of joining a board. In the nonprofit world, founders of an organization may still be involved and cast a long shadow over board deliberations. Sometimes organizations may be in a period where there is a disconnect or distrust between the board and current 

b. Personal Commitment

Your own ability to be effective as a director is another factor to take into account in considering board service. Expertise, reputation, financial donations and support may have played a role in your being asked to join a board. They alone do not make you a good director. Although there is no magic formula for being a good director, there are a number of actions and practices which are generally considered to represent excellence in board service, including the following:

• Understanding the mission of your organization and helping to keep it current and relevant.
• Becoming familiar with the organization's basic governance documents.
• Staying current on governance trends.
• Staying current on business and societal issues that may affect the operation or mission of the organization.
• Attending board and committee meetings regularly.
• Actively contributing to the work of the board and the organization.
• Reading board and committee materials in advance.
• Asking questions at meetings on issues you don't understand.
• Offering suggestions and comments in a positive manner.
• Avoiding micromanaging or nit-picking.
• Being respectful of the management team and other directors.
• Being collegial; refraining from dominating meetings or personalizing debate.
• Supporting the chair in efforts to keep meetings moving.
• Keeping questions and comments relevant.
• Knowing key staff and their roles, but refraining from contacting lower level staff without advising the executive director.
• Meeting periodically with the executive director.
• Getting to know the other board members.
• Supporting the organization financially.
• Attending functions of the organization in the community.
• Helping raise funds from others for the organization.
• Being an advocate for the organization in your community.
• Engaging others in the work of the organization.
• Keeping alert for warning signs of potential trouble-disaffected directors, arrogant or ineffectual executive director, sloppy reports, lack of forward momentum, poor accounting, shortage of funds, etc.
• When you have concerns about the organization or board or staff, raising them with sensitivity to the appropriate person (board or committee chair or executive director) and working to correct the problems.
• Knowing when it's time for you to rotate off the board in order to help keep the board fresh and viable.

Comparing your performance against these actions and practices will give you a good idea of whether the organization you serve will consider you a valued and effective director.