Selecting Effective Nonprofit Board Members
While speaking at a recent nonprofit executive conference, I was asked, "What makes an effective board member?"
A good question.
If ever nonprofit organizations need effective board members, it's today. Board work is important in a nonprofit organization. More important perhaps, than many board members believe.
Consider what should happen in the nonprofit board room: It's here that corporate policy is made, where project priorities and goals are set, where capital (yes, nonprofits have capital) is allocated and where the values of American society are
exemplified.
These board room "happenings" are the substance of board member's fiduciary responsibilities, the evidence of board member's commitment to accountable governance. And they are occurring with increasing frequency in nonprofit
board rooms across America.
None too soon. Recent lapses in board oversight in several prominent nonprofits have focused public attention on the importance of board oversight and executive accountability.
Because the board has responsibility to manage the nonprofit's business and affairs, individual board members must be selected with care. But, to put the question in the words of my questioner, what makes an effective nonprofit board member? I
submit that persons possessing the following characteristics will likely distinguish themselves as being effective board members:
1. Commitment. Effective board members are committed to the nonprofit's mission and to fulfilling it in their generation. They understand the mission, identify with it, articulate it, and defend it with passion.
2. Knowledge. An effective board member understands the essential workings of a corporate organization and knows the basics of a tax-exempt corporation.
3. Participation. Effective board members listen, request information, read what they receive, ask questions, weigh answers, and make reasoned decisions.
4. Listens to Advisors. Advisors may not always be right, but highly effective board members know when to seek professional advice, and they listen when advisors speak. Professional advice need not always be followed, but
if rejected, it should be rejected for understandable reasons.
5. Alert. The effective board member is alert to signs of trouble - financial trouble, management trouble, operational trouble, personnel trouble, litigation trouble, or IRS trouble. And, when signs of trouble are observed,
effective board members take steps to resolve the trouble.
6. Avoids Conflicts of Interest. Effective board members avoid doing business with the nonprofit; but, if done, is done only on an arm's length basis and with full disclosure to the board.
7. Establishes Management Performance Standards. Effective board members establish management performance standards and hold management accountable to meet those standards. This sometimes difficult task must be
done as a matter of fiduciary obligation. The effective board member does not allow deference to friendship interfere with responsibilities to assess, select, demand, and support effective management.
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