Every successful nonprofit can trace its success back to a
founder that had the foresight to assemble an effective board of directors.
Good boards are not born, they are cultivated and grown.
There are boards, and then there are BOARDS. Good boards are
not like a pile of cut lumber. They are more like branches of a tree, in that
they constantly nurture the mother plant, evolve to meet changing conditions,
and send out seeds or runners to stay alive and viable. Once a pile of lumber
is used up, it's just gone. It's static, because the pile will only produce a
pre-conceived structure. A tree keeps producing living tissue for decades, even
centuries.
Developing good boards takes the skill of a master arborist.
You have to know how to select the right seed stock, when to prune away the
dead wood, and how to nurture it so it can produce the best fruit, before your
nonprofit can collect a successful crop. Here are some of the indicators that your board is growing well.
A good board provides
structure for the nonprofit.
It maintains a coherent mission-centered direction, imposes reasonable
limitations on behavior and finances, and oversees and guides mission
accomplishment. Board members are legally responsible for the conduct and
financial integrity of the nonprofit, as well as the success of the mission.
Good boards
participate financially.
Every board member should have some financial investment in
the organization. That doesn't mean the board is, should, or can be the sole
support of your NPO. It does mean that they should give an annual sum that
shows they are personally invested in success. Grantors often ask for the
amount each board member contributes annually. That amount should show real
commitment relative to the size of the nonprofit and its mission. For very
small or new nonprofits maybe that's a few hundred dollars a year for the whole
board, while larger organizations might expect a minimum four-figure donation
from each member. After all, if the board doesn't support their own
organization, why should anyone else?
Good boards set goals
and make decisions.
The board must have performance standards and clear goals
for the organization. If the same action items are on every agenda, or there is
no or little progress being made in achieving predetermined goals, the board
must be willing and able to take corrective action.
Good boards understand the requirements of fundraising.
Every board member should understand how much needs to be
raised, why it needs to be raised, and have a basic understanding of the
process involved in soliciting funds.
Good boards get
involved in fundraising.
There are many ways for the board to participate in
fundraising. Perhaps they show up at events and pressers. Maybe they sign
thank-you letters to donors. They can publicize the nonprofit through their
business and personal connections. They can serve on phone lines at telethons. They
may plan fundraising events. Whatever their contributions, they are active in
the fundraising process at some point.
Good boards
understand that there is a cost to fundraising.
"Free" money doesn't exist. Someone has to write
the grants, research funding opportunities, attend events where there may be
sympathetic prospective contributors, and manage the grants. Paper, printing,
and distribution of fundraising documents or other marketing costs actual
money. Controlling fundraising costs
can't be limited to "if it costs money we ain't doin' it". Pick a
reasonable percentage of the budget to devote to fundraising, monitor its ROI effectiveness,
and accept that cost without complaint.
Good boards show up.
Good boards have strict meeting attendance and conduct policies
and enforce them. The board chair must take attendance and educate, caution,
and finally eliminate no-show, unreasonably disruptive or overly passive board
members and recruit new ones that will take their responsibilities more
seriously.
Good boards invite civil
discussions on issues.
Boards should not be rubber-stamps for the founder, board
chair or president. No member should feel that they can't offer a suggestion or
request clarification of a point. On the other hand, a good board chair does
not allow these discussions to degenerate into shouting matches. Meetings
should be run under Robert's Rules of Order, and after a reasonable discussion
period any new information or dissenting opinions should be either voted upon,
tabled and considered in the next meeting, or assigned to a committee for
further investigation.
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