Your nonprofit board of directors plays a crucial role within your organization. For instance, the board is responsible for policies, governance, and oversight of management. Moreover, with the fundraising landscape changing, a lot of work needs to be done. It could be a big challenge for many nonprofits, but it doesn’t have to be that way.
You see, a nonprofit board has to be managed. What do I mean by that? In my experience as a fundraiser, I viewed boards as partners in a relationship. The role of management is to partner with a board of directors, and that means bringing your nonprofit experience to the table. Many people who aren’t experienced nonprofit board members often lean on executives for guidance.
Nonprofit board membership involves various roles, responsibilities, and leadership positions, including chairperson, treasurer, and secretary. A board will also include multiple committees, such as the fundraising, marketing, finance, and program committees, with each of these groups having a chair and members working to ensure proper oversight.
Structure of a Nonprofit Board of Directors
A nonprofit board has fiduciary obligations to the organization and its mission. The board isn’t like an advisory board, and they have an obligation to help lead and ensure the mission and work. Remember that nonprofits have a special privilege in our country. They don’t pay taxes on fundraising revenue if they’re a 501(c)(3), and generally, donors receive a tax deduction. You can consider a nonprofit board like the bridge between the community and the organization, ensuring that it does things right.
The structure of a board of directors can vary somewhat, but generally speaking, they follow a similar model. To begin, a board has a board chair who is responsible for leading and guiding the board. They help determine issues brought to the broader board, and they facilitate collaboration among board members and management. Typically, the board chair also leads the executive committee, which deals with governance and coordinates critical issues from the other committees.
A strong board also has other committees to support critical areas of the nonprofit. In turn, each of these committees has a chair, and in some cases, as in the board of directors, you can have co-chairs. Committees include marketing, board recruitment, programs, and, of course, my favorite, the development committee that aims to help with profitable fundraisers. Each of these committees is responsible for providing board support to its respective areas, encompassing the entire nonprofit.
Finally, it’s important to remember that a nonprofit board of directors vote on policies and issues related to its board oversight. That means they play a key role in a nonprofit, supporting its mission through work by providing expertise, resources, and guidance. The board’s nonprofit bylaws guide them to maintain accountability and stay focused. When done well, a strong board is an invaluable experience that helps ensure an organization thrives.
Committee Chairs and Their Responsibilities
Nonprofit boards are only as effective as the people who are voted to serve on them. When I attended grad school, I learned something that I haven’t forgotten. It’s the idea that management (e.g., EDs, CEOs) not only manages down, but also manages across and up. Yes, that means your nonprofit board of directors. It is the responsibility of the organization’s leader to maintain a strong relationship with the chair and committee chairs.
So, what does that mean in practice? Well, the first thing to remember when working with a board is that they are volunteers. In other words, they don’t know the day-to-day about everything happening in the organization. As a result, a strong management leader partners with the chair and the committee chairs to ensure they understand the implications of the issues. Moreover, for those committee chairs without experience, it’s the ED or CEO’s responsibility to help them shine and get comfortable in the role.
In my experience, with a well-run nonprofit, there are typically several strong and active committees. Those include the development or fundraising committee, the executive committee dealing with governance, and, of course, the finance committee. Again, my favorite is the fundraising committee because they help provide the essential financial resources for a nonprofit. If you’re new to boards, then a key takeaway is their strategic role and responsibilities.
Their role is to ensure their fiduciary role for the organization. That is first and foremost. However, the chair and committee chairs help their groups operate well by setting clear agendas, and helping to facilitate discussions around critical topics that need to be brought to the full board. They also serve as a link with the community, which is why many organizations use board members for fundraising. Board members are critical to strong operations, decision-making, and success.
Successful Boards and Their Support of Nonprofits
When you have a great board, the chances are that you have a successful organization. So, what are the elements of a successful nonprofit board of directors? As I stated, if you’re the leader of the organization, it’s essential to have strong relationships with the chair and the committee chairs. That means visiting with them regularly, engaging, and asking for their opinions. In my experience, asking for opinions, thoughts, and ideas helps build rapport.
As a former fundraiser, I believe it’s essential to involve board members in the fundraising efforts. Why? When donors know that board members give, it helps build trust in the organization because board members are volunteers. They choose to be board members and, remember, they represent the community, as well as the nonprofit. However, there are other key ways that boards can effectively support their favorite nonprofits.
1. Mini-Strategic Plan Approved by Your Board of Directors
Perhaps your strategic plan is off-target. That’s okay. One of the big lessons to realize is that we don’t know what can happen. Sure, we live in a very quick-paced world, yet we are facing a pandemic. As a result, for nonprofits to thrive, flexibility is essential. Work with your board of directors to develop mini-plans that align with your broader objectives. For example, take your longer-term strategic plan and break that down into smaller parts. Perhaps you decide to focus on growing your fundraising for the rest of the year.
Develop a plan for the next 3 to 6 months, focusing on one or two key areas. Then, ensure that you clearly outline how the organization plans to achieve its goals, including the timeline and performance metrics. By revisiting your larger plan, you have the opportunity to focus on smaller, more achievable goals during a time of uncertainty. Your nonprofit directors play a critical role in helping you focus on the top priorities.
2. Staff Performance Review to Ensure You Have Full Resources
Your board of directors should take a look at the performance of the officers of the nonprofit. During a time of considerable uncertainty, you need to have all hands on deck. However, as a nonprofit leader, you also have to ensure that you have the right people at the more junior levels. Your nonprofit directors have a responsibility to assess the performance of the executive director, which is you. And, if they decide that it’s necessary to do it at this time, that’s a good thing. Some people are fantastic at directing in times of great crisis, but others are not.
Provided you and the nonprofit directors feel comfortable that you could guide your nonprofit through this shaky period, you need to look at your team. Again, you want to have on your side a group of top performers. And, you certainly don’t want to have people on your team who could undermine what you need to do. So, motivate and highlight individual, group, and organizational successes, but speak to focus on areas for improvement. Any work plan needs performance metrics that include staff performance and timelines to make evaluation easier. If possible, reward your employees with merit-based bonuses.
3. Financial Reviews by Nonprofit Directors
Many nonprofits start their fiscal year in July, so obviously, many will see a decline in fundraising. However, you and your board of directors have to remember that we will soon be in the holiday season and Giving Tuesday activities. And, as you know, this is an opportunity to attract new donors. First, work with your CFO and the appropriate board directors to prepare, review, and analyze all annual and fiscal reporting. It should include reviewing your budget, making any adjustments, and making preparations for the next fiscal year.
Once you have a perfect sense of the financial picture and monies you need to raise, it’s time to focus on fundraising. Yes, you still need to prioritize fundraising. And, one of the things you should do is to get creative on your fundraising. Meaning, look at new and innovative ideas and don’t just do business as usual. And, if you want to take a deep dive into fundraising ideas, then also take a look at these unique fundraising ideas.
4. Review of Your Brand’s Image in the Community
When was the last time you updated your brand? If it’s been a long time, taking the time to review and update your collateral material, or preparing to move into a period of creative brand repositioning, may be a good idea. If your content and material look tired or dated—and the chances are your nonprofit directors will mention it—the time has come to update. Donors, prospects, the general public, and media get exposed to thousands of images daily. To keep ahead of the curve, you need a clean look that effectively conveys your message with compelling visuals and content.
While your board of directors may say that the climate is too uncertain for a brand change, that is not the truth—particularly if it’s in great need of an overhaul. Think of it this way: there’s a lot of competition now for fundraising dollars. As a result of the economic climate, donors are retrenching. What that means is that they will give more selectively, and they have to see a measurable impact. First, your brand captures attention with its brand identity, and then with the facts. So, to dominate in fundraising and cut through the noise of lots of nonprofits seeking funds from retrenching donors, now’s the time for your group to be bold.
5. Internal Review of the Board of Directors
Finally, just as your and the team’s performance should be reviewed, so too is it vital to assess the board of directors. Remember, this is about trust capital within your community. Each board member’s performance should be reviewed individually, as well as in aggregate. If an individual has not met their obligations, discussions should occur with the director to determine the next steps. Perhaps it’s simply a matter of developing supportive measures to help board members fulfill their responsibilities.
For any board member rotating off the board in the coming year, a pipeline of prospective candidates who meet the vetting criteria should exist. In other words, the nonprofit committee of your board of directors has work to do. Remember, due to this significant uncertainty, you may have board members who now need to focus on other demands. Therefore, don’t assume that your board remains unchanged from its previous state.
By taking the time to review the areas above, you will position yourself to succeed better in the latter part of the year. Partnering with your board of directors will help get your nonprofit gain a proactive and solid footing for this year and the next amid uncertainty.
Next Steps for Your Nonprofit Board
In conclusion, the board of directors plays a critical role in your organization’s governance and operations. Moreover, they can be a great tool for your fundraising efforts. When you have a good relationship with a nonprofit board of directors, you can set a strong strategic direction and make a significant impact in your community.
As we wrap things up, let’s explore some quick tips for board success.
- Be thoughtful about who you want to serve on your board. Find individuals with experience in marketing, fundraising, legal, and financial fields.
- Ensure transparency and open communication between your team and the board. How? Have strong relationships, even when you disagree.
- Provide board members with performance and updates about your nonprofit. Remember, they should serve you strategically, and they’re not meant to be in the weeds.
- Appreciate your board volunteers. They don’t have to support your organization and give you the time. They do it because they care about the mission, so thank them.
Embrace best practices about boards. Fortunately, numerous excellent nonprofit board organizations and professionals are available to guide you in creating a strong board. Some of those groups include the Nonprofit Council of Nonprofits, BoardSource, and the Foundation Group.
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