NPO Boards: More than Just Volunteering
August 4, 2023
As many of you know, I have spent the past 30+ years actively working, supporting, and donating to nonprofit organizations. Over those same years, I have served on many boards, in different capacities, and I have also worked for NPO boards, so I believe I have a good understanding of this world. In this post, I’m discussing the role of board members and some of the complexities that exist when working with NPO board as a volunteer.
When NPO boards work well together and are working towards a focused mission, it is crazy how much can be done, and in many cases, without the look or feel of chaos in getting those things done. When those boards do not work well together, then that is a completely different story.
Nonprofit boards play a critical role in the guidance and success of organizations. However, when composed of volunteers, challenges often emerge that can hinder their effectiveness. Some of these complexities include mistrust, competing priorities, individualism vs. collaboration, and wavering commitment to fiduciary responsibilities.
- Lack of Trust: A board without trust is like a ship without a rudder. Mistrust can result from a myriad of factors, from past disputes to differing viewpoints. According to Harvard Business Review, trust is the foundation of every successful team. Without it, boards struggle to make critical decisions and operate efficiently. Harvard Business Review.
- Competing Priorities: Individual board members often come from diverse backgrounds with unique perspectives. While this diversity is valuable, it can lead to competing priorities. Members might prioritize their personal or professional interests over the organization’s mission, creating tension and division. The influence of staff can sometimes add priorities that serve the staff member, but not the organization.
- Lack of Cohesive Collaboration: Teamwork is crucial for a board’s success. However, a study from Stanford Social Innovation Review highlighted that 65% of nonprofit boards exhibited weak dynamics that prevented effective collaboration. Cohesion is compromised when members don’t effectively communicate, or when they operate in silos. Stanford Social Innovation Review.
- Fiduciary Responsibilities: All board members have a duty to the organization’s financial health and mission. Sadly, some neglect these duties due to a lack of understanding or commitment. Such negligence can lead to financial mismanagement and can tarnish the reputation of the organization. With charitable organizations (like a 501(c)(3)), this failure of the board can lead to the lose of their status!
Addressing the Complexities
Overcoming these challenges requires proactive steps:
- Building Trust: Establishing open communication and regular board training sessions can foster an environment of trust. Reducing the one-on-one conversations about matters that the board should be discussing helps build trust, as others not included do not feel left out.
- Aligning Priorities: Regularly revisiting the organization’s mission and vision can help board members align their priorities. Spending some time each year going over the main strategic goals and evaluating the success or failure of the board meeting those goals, helps align priorities and provide a built-in reality check on how the board is doing.
- Promoting Collaboration: Team-building activities and training can nurture a collaborative board environment. Reaching out to collaborate with others or other organizations, also can help overcome challenges.
- Reinforcing Fiduciary Duties: Regular financial reporting and external audits can ensure transparency and reinforce the importance of fiduciary duties. Asking questions about the financials, and seeking a better understanding from other board members who understand the financial reports will help educate oneself more. Numbers (generally) don’t lie, and often you can get a very clear understanding of the status of an organization (e.g. your own board) by spending a little time looking at those numbers.
Noone said serving on a volunteer nonprofit board was easy, and every board will face unique challenges, however, having an awareness of how to recognize and address these complexities as they arise can pave the way for a more effective and harmonious board.
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