To Board or Not to Board
A Philosophical
& Practical Look at
A BIG Question
Peg Tallet
principal, Peg Tallet Strategic Consulting
What makes a NFP great?
• A clear, well-articulated mission that drives
everything its staff, board and volunteers do
• A realization that fund raising is part of the
mission – a big part!
• A top flight professional staff with both
mission-focused skills and business acumen
• A board that knows its place, role and value,
has great passion, connections and discretion
What makes a board great?
“Boards and board members perform best when they
exercise their responsibilities primarily by asking good
and timely questions rather than by ‘running’ programs
or implementing their own policies.
Board/staff relationships are what they should be
when mutual expectations
are agreed upon and issues and responsibilities are
clearly defined.”
Richard Ingram, in
Ten Basic Responsibilities of Nonprofit Boards
The Board Member
• Place – at the board room table, on the front line
at donor/public focused events, in front of the
desks of the professional staff, not behind it
• Role – care deeply and show it, talk about the
organization well and often, make connections on
its behalf, give money, time and counsel
• Value – be the face of the organization in your
personal community, help the professional staff
and volunteers, but don’t try to run the
organization
What am I getting into?
“Being a trust holder of the community means serving
as would a good steward.
The good steward views the community as a gift from
previous generations, but a gift with strings
attached. One is obligated to pass the gift
to future generations in a better state than that
in which it was received. The community is both
our inheritance and our legacy.”
National Association of Community Leadership,
Taking Leadership to Heart (1996)
Put the commitment in committee
Going on a non-profit board should be a lifetime commitment!
When you join, you should do so with the
expectation that your involvement will go way
beyond your term(s) on the governing board
What does should a NFP board do?
• Serve as guardian of the public trust
• Oversee the financial operations of the organization
• Maintain the legal and ethical standing of the
organization and its staff
• Provide leadership and strategic direction for the
organization
• Set policy but step back and allow the staff to
implement that policy
• Ensure that an organization remains accountable to its
donors and to the general public
Which board is right for you?
Things to think seriously about:
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Do you have an affinity for the organization and its mission?
Is the topic of importance to you?
Are there articulated expectations for your time and money?
Would the time and money you are about to dedicate to the cause
make you happy? Satisfy something in your soul?
Do your skills, contacts and interests align with the organization’s
needs?
Does its work style mesh well with your own?
Does the institution’s board and staff reflect a level of diversity
comfortable for you?
Is there an enforced conflict of interest statement for board and
staff?
Legal, ethical and moral
responsibilities
• Governance = Risk
• You have a right to expect transparency and to
understand the extent of risk board members
are subjected to
• (Important question: Does the organization
have officer & directors insurance?)
What must a board do?
• Define and monitor the long-term strategy by
which the organization fulfills its mission
• Periodic checks on the performance of the team
in implementing the strategy
• Approve budgets, financial plans and financial
statements; approve capital allocations and
expenditures; monitor and ensure the integrity of
the organization’s financial reporting processes
• Balance constituency interests in a manner that is
consistent with the mission
More to do
• Thoroughly understand and manage risks
• Ensure compliance with all applicable laws,
regulations, policies and ethical standards
• Assist in obtaining resources through making
personally meaningful financial contributions,
providing access to those who can support and
assist staff in cultivating and soliciting donors
• Establish the composition of the board and its
committees, and determine governance practices
Giving is very time consuming
• Why should already busy people serve on a
board of a not-for-profit?
• Desire to make the community/world a better
place
• Passion for a cause
• Transfer your skills and contacts to improve
the success of an organization and its mission
Resume Builder OR Life Changer
• Making board service work for you is okay, but
you have to distinguish yourself as a great
board member to do so
• Amazing networking opportunities – must go
both ways
• You must give more than you take …
intellectually, emotionally and financially
• Relationship building can go both ways but
not as a primary motivator
Give, Get OR Get Out
• You must provide financial support – annual
gift, patronage of fund-raising events, capital
or special campaign donation, and possibly a
planned gift
• You must help the staff and board create
relationships with potential donors and
cultivate those relationships
• If not, you must resign from the board
Do your due diligence – diligently!
High Functioning or Hardly
Functioning?
Something(s) to consider …
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Can I see the strategic and operating plans?
Can I see the P & L on fund raising events and programs?
Can I meet with several members of the board?
How long is a term of service? Is there a limit to how many terms
a director can serve?
What is the average length of service of existing board members?
Who provides legal counsel to the organization? To the board? Is
that person paid or providing pro bono services? Are they on the
board or on the staff?
Who audits the organization?
What is the Guidestar rating? If not exceptional, can the
organization tell you why?
Do staff leaders, other than the CEO, attend and report at board
meetings?
Before you say yes
• Volunteer in a meaningful capacity for the
organization in a way that allows you to
– Get to know how the organization fulfills its mission
– Become familiar with the leadership --- both staff and
volunteers
– Discover how the organization works and if it is in sync
with your interests, particularly with respect to:
• Oversight
• Welcoming new ideas and ways of doing things
• Inclusiveness
• Ask questions and expect answers!
BEWARE
Inviting a person previously uninvolved in an
organization to join the board is either an act of
desperation or a cry for help … or both
• Almost one-half of nonprofit leaders report that
it is difficult to recruit new members.
• Almost one-third of chief executives report that
they do not have the right board members to
effectively govern their organizations.
•(2012 BoardSource Nonprofit Governance Index)
Sufficiently concerned?
• Say yes if all of your questions are answered
and you honestly believe you can help the
organization
• Say yes if you believe the NFP provides valueadded to the community
• Say yes if you have the time, connections and
resources to fulfill your obligations
Sufficiently motivated?
• Go for the gusto!
• Non-profits make their communities … and
the world … a better place!
• You will be greatly enriched by the experience
as will the NFP you choose to work with!
• Let me know if I can help you make a decision
and or provide external engagement counsel
to the organization you select!
Peg Tallet
Principal
Peg Tallet Strategic Consulting
248-259-5000
[email protected]