Non-Profit Boards: Do we expect too much

Non-profit Boards: Do we expect too much?

Okay, here’s the theory: non-profit organizations are not owned by anyone. But they are supported by the public through tax-exempt donations, so the public has a right to ensure that these organizations have oversight and are using their funds well. So, a volunteer board of governors, trustees or directors is required of the government for non-profit organizations.

The basic responsibilities of these boards are these six:
Ensure that the organization has a clear mission and a plan of action to pursue mission success.
Ensure that the organization has the resources necessary to carry out its plan of action: people, facilities, equipment, information and money.
Ensure that the organization is indeed implementing its plan of action and making progress toward its mission.
Ensure that the organization is run in a financially sound manner.
Maintain the organization’s sound reputation with beneficiaries, donors, partners, the media and other key audiences.
Promote the organization.

Sound simple? Maybe.

These are the governance functions of the board. In many (most?) non-profit organizations, the work of the board does not end with governance. Board members and board committees often take on more work in addition to straight-up governance tasks. They may undertake program activities (e.g. conservation land transactions, serving meals, helping with tax returns, etc.). That’s the work of at-large (i.e. non-board member) volunteers. And as long as we keep tactical volunteer activities separate from governance, I think we are okay.

The rub often comes in fundraising. The board is responsible to see that the organization has the resources it needs (function #2 above). Oftentimes, that means the board is not only directing the organization to raise money, but also is actively engaged in raising that money. Many board members are selected to join the board because of their personal wealth and connections to other people with the means and interest to give to the organization.

There is an old formula for board members: the 4Ws and the 3Gs. The 4Gs are what we want in a board member: work, wit, wisdom and wealth. Usually, if the four add up to 100%, having wealth can provide most of that 100%. The 3Gs pertain specifically to fundraising. Give, get, or get off. Kinda harsh, but there it is.

We often expect the board to get very engaged in fundraising. To give a cash gift every year, and one that is as large as their largest charitable contribution to any of their causes. If they are on the board, they should be as committed to this organization as any. Also, we expect board members to help identify prospective donors, cultivate relationships with those prospects, help solicit gifts from them, and thank them for their support, which renews the relationship and sets the stage for the next gift.

Not many board members understand, appreciate or like the fundraising part of their service. But most board members want to be helpful, so they often gravitate toward other tasks not involving fundraising. And sometimes not involving governance.

Then where is your board headed?