Over the years, I worked with both large and small boards of directors and boards of different ethnicities and religions. What I found was that size, ethnicity or religion were not determinants of effectiveness. What remained critical was whether boards unambiguously understood their roles and responsibilities. It was their resolve to follow universally acknowledged best practices and accepted principles of governance, advocacy and philanthropy (the latter of which means to both “give and get”) that determined their success.
The crucial role of a nonprofit board has intensified over time as the numbers have increased. In 1940, there were only 12,500 charities registered with the Internal Revenue Service. Today, we estimate that 2.3 million nonprofit organizations operate in the United States, with approximately 1.6 million registered with the IRS. Since 2000, we have seen a nearly 30% increase in such entities.
Board members now are the lawful fiduciaries of the nonprofit institution, and govern by steering the organization towards a sustainable future by adopting sound ethical, legal and financial management policies, as well as making sure the nonprofit has adequate resources to advance its mission.
Board members are uniquely positioned to be successful advocates and ambassadors for their missions. As business leaders, community volunteers, philanthropists and influential leaders, they have the connections, the confidence and the respect needed to speak on behalf of their organizations. When policy decisions are enacted that might affect the organization’s ability to achieve its mission, they can defend their cause.
Over 16 years ago, Ronald LaRose, an eminent fundraising consultant, presented a seminar I attended entitled “Building a Fundraising Board.” He described 12 types of nonprofit boards. What follows is a direct attribution of his brilliant lecture. In my experience, I have come across every version described. Let’s discuss the grim realities as presented by LaRose.
‘Some Do and Most Don’t’ Board
First, there’s the “Some Do and Most Don’t” board. This type of board may have 12 to 18 members on it, but philanthropy (“giving and getting”) becomes limited to three to four members with the capacity to do major good. Unfortunately, the burden of carrying the ball falls on the shoulders of the few, which doesn’t portend well for the nonprofit.
‘We Have Never Done This Before’ Board
Then there is the “We Have Never Done This Before” board. OMG! This type of board may have well-intentioned folks serving on it, but members have no resource development history or philanthropic capacity. The nonprofit won’t stand a chance to evolve and grow, because of future financial and fundraising limitations.
‘I’m Not a Fundraising Type of Guy’ Board
The third type is the “I’m Not a Fundraising Type of Guy” board. There may be folks here with philanthropic ability, but they have no desire or even a minute willingness to undertake their fundraising duties. It is hard to make forward progress unless one can change these board members’ unconstructive inclinations.
‘All Aboard’ Board
The “All Aboard” board is a large group—maybe 45 to 50 members—with 12 to 15 proactive donors and ambitious people. Certainly it benefits the organization to have active board members, but a larger group can be cumbersome and needs specific fundraising guidance.
‘Not Quite Prime Time’ Board
Some nonprofits have the “Not Quite Prime Time” board with a heavy concentration of mid-level corporate and community leaders. These folks have great potential but need leadership training to help them maximize their potential.
‘A Good Talent Pool’ Board
A sixth board is the one with “A Good Talent Pool.” This is a desirable board to have because there is a delightful mixture of balanced talent distributed to working committees, with fundraising consigned to a specific committee. This board can get the job done with nominal direction.
‘No Dinero’ Board
Of course, many of us are quite familiar with the “No Dinero” board. You will often hear them say, “We give our time and talents,” and have respectable people on it. But they don’t give dinero. Not helpful because a balance of generous giving and talent is essential.
‘An Evening of Reruns’ Board
You may have encountered the “An Evening of Reruns” board. This board comprises the old guard, who describe themselves as “tired and tapped out.” Usually, they have no term limits and, historically, have a noticeable absence of younger members. Just not helpful.
‘What Kind of Wood Are We Using for the Fence?’ Board
Senior executives can speak volumes about the “What Kind of Wood Are We Using for the Fence?” board. This is a board that exists to oversee the staff and, often, micromanages the organization. Frankly, if you hire a competent professional and capable staff, this type of board can be quite counterproductive to the best interests of the organization.
‘My First Commitment Is to My Alma Mater’ Board
Then there is the “My First Commitment Is to My Alma Mater” board. The allegiances and loyalties of this board are questionable. They seem to make other institutions the priority and not the ones on which they serve. So, my question is this: What motivated them to serve on the board of this nonprofit in the first place? Just not a helpful group.
‘Who Is in the Driver’s Seat Anyway?’ Board
Another group is the “Who Is in the Driver’s Seat Anyway?” board. This nonprofit may have a board of directors and a board of trustees, or two distinct groups representing different communities and, hence, different constituencies. Loyalties and priorities may be at cross purposes, and this is not useful.
‘Devoted to Playing Small Ball’ Board
Finally, there is the “Devoted to Playing Small Ball” board. Here you find individuals who love to support special events, which are often labor intensive, and/or not great for the ROI (return on investment), but they do not get involved in major gift solicitations or other indispensable fundraising activities. This group also needs direction to set its priorities.
So, which board do you have, and are they prepared for change and ready to undertake their true mission?
Norman B. Gildin is the author of the popular book on nonprofit fundraising “Learn From My Experiences.” He is the president of Strategic Fundraising Group, whose singular mission is to assist nonprofits to raise critical funds for their organization. His website is www.normangildin.com.