Nonprofit Board Basics, Part One

Recruiting & Retaining a Dynamic Board

Nonprofit Board Basics, Part One:

September 23, 2021

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Presenter

Dan Prater Senior Managing [email protected]

1. Infancy

2. Toddler

3. Adolescent

4. Prime

5. Stable

6. Aristocracy

7. Bureaucracy

Seven Stages of Organizational Life Cycle

https://www.clipartkey.com/view/iiwJoiT_adolescent-icon/

Infancy Toddler› Founder’s vision & energy

› Few systems/policies in place

› Angel board, friends, & family

› Raise money, use personal funds

› Publicity due to newness of idea

› Hires first paid staff

› Moves from “crisis” mode

› Focus still on activities

› People spread thin, feel overwhelmed

› See need for planning, structure


Adolescent Prime› Conflict – passion or structure

› Set goals, formalize system

› Threat – shift from founder

› Fundraising more organized

› Board/volunteers still lack depth of

understanding for policies

› Staff work well, mutual respect

› Systems support growth & innovation

› Focus on results, reaching stated mission

› Decisions based on facts, risk assessment

› Development staff skilled

› Board/volunteers have needed expertise &

connections


Stable Aristocracy› Programs/services recognized

by peers

› Widespread financial support

› Employees take pride & satisfaction

› Employees have competitive salaries & benefits


› Money directed to image vs. services

› Focus on how things are done more

than on what is being done

› Endowments used to offset shortfall

› Little attention paid to lower-level gifts;

focus is on top contributors only

Bureaucracy› Resources drying up, decline is obvious

› Lacks focus; becomes myopic, inward focus

› Energy spent on fighting internally rather than fighting for organization’s mission

› Staff layoffs, eventually CEO fired

› If new leadership does not emerge, funds run out, & organization eventually closes. The END

http://www.managingamericans.com/BlogFeed/Operations/Workplace-Bureaucracy-Learn-to-Break-Through-the-Red-Tape.htm

The board has the ultimate authority & responsibility

for the performance of the organization, even if it employs

people in executive leadership roles

The board is accountable to the community

& the people they serve

Starting-Point Truths About Nonprofit Boards

› There is no one-size-fits-all › Leading experts agree there are certain structures, policies, &

practices that consistently work better than others› All organizations experience a metamorphosis that requires

fine-tuning & sometimes a major overhaul

Starting-Point Myths About Nonprofit Boards › When people join nonprofit boards

• They know what to do & how to do it

• They know how to be good board members

• They know how to be engaged

› Being successful in a for-profit business or other industry almost guarantees one will be successful in helping a nonprofit

› Serving on a board somewhere else qualifies one to serve on your board

Forming the Board Structure: Getting Started

It’s time to grow up, move on

What kind of organization does this community need now?

What kind of board can help us be that organization?

START

HERE:


Board Matrix of Current Members› Skills/connections

› Term limits

Develop Clear Titles & Descriptions› Roles & responsibilities

› Benefits & expectations

Other Items to Clarify› Term limits

› Authority of board

› Attendance at meetings/events

› Financial commitments


Create a Diverse Board› Race, ethnicity

› Gender, age

› Education, economics


Forming the Board Structure: Recruitment

WHO is responsible for

recruitment?

Recruitment is primarily a board’s responsibility – not the executive director’s

Five WsWant (passionate about the cause)

Willingness (willing to make commitment)

Wisdom (smart, know cause, sound judgment)

Wallet (can bring resources—not just money—to organization)

Wallop (have influence with key people)

GreatBoard

Members


Selection or Nominating Committee › Start with your own members for names› Committees (minor leagues)› Recruiting event › Newsletter, email› Young professionals’ network

Screening interview

No promises – requires full board approval


Forming the Board Structure: Younger Members

57% 50 & older

17% 39 & younger

› Political engagement & clout› Tech savvy› Connect well with younger generations

Millennials & Generation Z› Various types of engagement› Committees first› Mentor with older member

Recruiting› Social media (not FB)› Workplace (blending of work,

volunteering, changing world)

Forming the Board Structure: Younger Members

Forming the Board Structure: Orientation

Don’t forget the WHY

People aren’t motivated to join a cause unless they BELIEVE in it

People are sold on your purpose, passion, & performance

THE NEEDDIFFERENTIATORRESULTS

› Packet• Bylaws, financials, policies• Org chart• Board & committee lists• Description of programs & services• PR materials• Strategic plan, annual report• Schedule of upcoming meetings & events

Mandatory Process

Forming the Board Structure: Orientation

Forming the Board Structure: Belonging

› Introductions

› Events

› Fulfillment

Connect them quickly

Belonging: Feeling as though we are a valued part of something bigger & more important than ourselves

Retaining Board Members: Culture

Board culture plays a major role in retaining top members› Builds cohesion

› Encourages cooperation & engagement

› Freedom to be creative & innovative

Culture exists & persists only because people act in ways that uphold its principles

Retaining Board Members: Culture

Board culture plays a major role in retaining top members› Encourage varying ideas

› Share responsibility

› Prioritize transparency & communication

› Call out disruptors & dominators

› Reject favoritism

Retaining Board Members: Retaining

Four keys to retaining top members1. One-on-one meetings

2. Biannual follow-ups

3. Annual retreats

4. Assessments

Board Members: Strategies for Growth

1. Forward thinking – planning aheadStrategic planPolicies & proceduresResources

2. AssessmentsBoard culture toolkitChampions of change

Board Members: Strategies for Growth3. Steward current members

Treat them as well as your big donors

4. Communicate with confidenceClarify their importance to & impact on your workTell your members’ storiesTrain them to tell their stories

Board Members: Strategies for Growth

5. Provide training› Legal & core responsibilities

› Public relations

› Information/updates about cause or issue

Transitioning

Board Members: Graduation

Governing

CommitteeAdvisory

Board Members: Transitioning

Five reasons to resign from a board

1. Member has conflict of interest that is hurting (or could hurt)

2. Organization’s values or activities no longer align with your own

3. Organization not operating within law or own policies

4. Persistent damaging issues are intentionally ignored

5. Member is no longer able to meet fiduciary responsibilities

Yourlogo

Poor performers … It’s not fair to other board members

It’s not fair to staffIt’s not fair to your organization

What happens when board members don’t do what

they are supposed to do?

Pitfalls of Boards

IgnoranceInflexibilityIndifference

Questions?

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CPE Credit

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

Thank You!

Nonprofit Board Basics, Part One

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