The other day I had a conversation with a woman who, like me, has been involved in the nonprofit sector for more years than we care to count. We were talking about what nonprofits need to be more successful, and that very quickly led to a discussion of boards and what would be helpful to them. We agreed that, unfortunately, boards are not always effective as leadership groups. It’s not that they don’t care. In fact, in all of the hundreds of boards with which I’ve worked, only once or twice have I encountered a person who isn’t there because of their passion for the mission of the organization.
So, if the passion is there, what’s the problem? I chalk it up to human nature. Many board members are unwilling to admit that they do not know what their role is. So they create it based on their life experience. Here are some examples.
Human Resources
One board member is an HR professional working in a governmental organization. So he insists that it is the board’s job to do all the HR work for the nonprofit. Not so. The only HR responsibility held by the board is that of selecting, supporting, supervising and, if necessary, terminating the Executive Director. Just that one person. All other staff of the organization are the responsibility of the ED and other managers.
The Board Treasurer
The most challenging example is that found in the definition of the role of Board Treasurer. A literal interpretation of standard bylaws would lead one to believe that the Treasurer must have complete control over all financial matters. The great need for nonprofit accountability, however, argues otherwise. In practice, the Treasurer must provide the fiscal oversight that assures that the nonprofit is managing and using its funds appropriately and effectively. He or she must also should help the rest of the board understand the financial reports and practices. Treasurers should not be check signers. They should not be bookkeepers for their nonprofits. They should not manage their nonprofit’s investments. They are the guardian of the financial credibility of the nonprofit.
Passion is essential. But so is knowledge of governance. With these two things, boards can be highly effective leaders for their nonprofits.
