Many nonprofit organizations are struggling because they cannot seem to attract nor retain board members who can help oversee the organization during this downturn economy. It may be time for these boards to step back and create a system by which they identify, recruit, and orient new board members to their mission.
An effective organization creates a strategic plan outlining goals, tactics and timetables for its future. One of the hallmarks of this same effective organization is the use of the strategic plan as an outline for identifying the future talent it will need on the board in order to accomplish its goals. Typically, this organization’s Governance Committee will create a board nominating grid. The set of skills needed to accomplish the strategic plan goals are outlined. Each person currently on the board is assigned one area of primary knowledge. This allows the organization to identify and recruit according to skills needed and to recognize those skills that are no longer needed.
This same effective organization would also conduct a demographic overlay, considering race, gender, age, geography. They will also identify the ideal candidate profile. As an example, they may say they want the number two or three person in a corporation with more than 50 employees and would ideally have the ability to authorize a donation of $10,000 or more from corporate giving.
Once the set of skills and profiles are identified, the Governance Committee will then ask existing board members to identify potential candidates who fit the criteria. This same committee will also reach out to targeted corporations and businesses to help identify new candidates.
Once a candidate is identified, the Governance Committee will schedule an appointment with this person. At this meeting, the set of expectations will be discussed. These expectations will include attendance, committee participation, giving, and identification of donor prospects. The expectation at this meeting is to confirm the candidate’s interest and ability to participate fully as well as to satisfy the candidate’s concerns and questions.
When the candidate has expressed an interest in serving and a willingness to sign the expectations document, this candidate will be placed in nomination at the next board meeting. The candidate is not present for this election. However, a member of the Governance Committee will call the candidate the next day and extend a welcome. During this call, the orientation process will be described.
Tuesday, June 2, 2009
Friday, May 15, 2009
The role of a Board during an economic downturn
The news has been filled with stories of local nonprofits struggling to deliver their mission because of a lack of contributions. One local nonprofit laid off 11 people in one day! The staff of another took a cut in pay and benefits in an attempt to continue the quality of their programming. Yet another decided to reduce the amount of revenue budgeted for the next fiscal year. What is the role of the Board during these challenging times?
All too often, boards decide that they want to cut expenses and spend a majority of their time issuing challenges to the staff to “cut 25% from expenses!” Although it may be a reasonable response to these challenging times, as one Board member stated last week: “The real challenge is how to increase revenue. We seem to be focusing on the wrong side of the equation.”
A reasonable response that might be suggested by a Board is to review the ways in which the organization is currently raising money and to invest more heavily in the identification, cultivation and stewardship of donors. Some things to test:
· Is the organization’s mission still relevant? If so, how is the community being made aware of the need for the mission?
· Is the organization managing the expenses of events? Is there appropriate oversight to ensure that event expenses don’t exceed 30% of gross revenue?
· Are the organization and its Board actively identifying new donor prospects?
· Are donors being continuously involved in an understanding of the mission and activities of the organization?
· Are donors being thanked sufficiently?
This is the time for Boards to review their oversight and involvement in the raising of revenue. And perhaps this is the time to invest in the recruitment of additional donors to the organization. The time is long past for honest conversation between boards and staff regarding how they are raising money, and more important, how much they are spending to raise that money.
All too often, boards decide that they want to cut expenses and spend a majority of their time issuing challenges to the staff to “cut 25% from expenses!” Although it may be a reasonable response to these challenging times, as one Board member stated last week: “The real challenge is how to increase revenue. We seem to be focusing on the wrong side of the equation.”
A reasonable response that might be suggested by a Board is to review the ways in which the organization is currently raising money and to invest more heavily in the identification, cultivation and stewardship of donors. Some things to test:
· Is the organization’s mission still relevant? If so, how is the community being made aware of the need for the mission?
· Is the organization managing the expenses of events? Is there appropriate oversight to ensure that event expenses don’t exceed 30% of gross revenue?
· Are the organization and its Board actively identifying new donor prospects?
· Are donors being continuously involved in an understanding of the mission and activities of the organization?
· Are donors being thanked sufficiently?
This is the time for Boards to review their oversight and involvement in the raising of revenue. And perhaps this is the time to invest in the recruitment of additional donors to the organization. The time is long past for honest conversation between boards and staff regarding how they are raising money, and more important, how much they are spending to raise that money.
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