The Nonprofit FAQ

What are some ways to strengthen the leadership role of the board?
The board-staff relationship is a paradoxical one. When acting in
their
governing role, the board must stand above staff and be the "boss."
But
when acting in their supporting role, board members act to support
and
assist staff-led work.

Some boards become so excited about their roles as governors that
they
mistake governance for close supervision of management and begin
meddling in minor management affairs. In other cases, as boards
govern
more, they shirk their supporting role. The challenge is to fulfill
both
roles, not simply switch from one to the other.

In short, boards have some inherent limitations in their ability to
govern, including lack of time, lack of familiarity with the field,
and
lack of material stake. These limitations have been supplemented by
the
sector's nearly exclusive emphasis on the board's supporting role
and by
a human tendency to avoid conflict. A first step towards an
effective
board is acknowledgment of the paradox, and the need to perform both
functions equally well. A failure to govern as well as support is a
transgression both against clients and the wider community.

Here are some practical ways to strengthen governance:

1.Have auditors and program evaluators report to the board. Agencies
frequently hire two types of independent evaluators: CPA auditors
and
program evaluators. But in both cases these independent
professionals
are typically chosen by staff (often with just a cursory approval by
the
board), report to staff, and work as partners to staff in the
staff's
relationship with the board. Instead, such evaluators should make
their
reports directly to the board and to the staff. Auditors should be
selected by and report to the board or the board audit committee.

2.Hire independent management evaluators. In addition to auditors
and
program evaluators, boards need unbiased sources of information
about
management as well. One of the most difficult tasks for boards is
the
evaluation of the CEO. On one hand a board can't interview staff
about
their opinions, but on the other hand, problems are created when a
board
obtains all its information from the person being evaluated. An
independent evaluator might interview staff, and, for example, if
there
were several allegations of sexual harassment, would report to the
board
that such charges exist.

3.Make governance an explicit part of meetings. Boards should affirm
their responsibilities in both support and governance. Board agendas
should be clearly marked "Governance Items," and "Supporting Items."
Among the qualities we should seek and reward in board members are
critical thought, discernment, questioning attitude. When someone
raises
an objection or concern, or votes against the majority, the board
president should make a point of going up to that person and
expressing
appreciation for the seriousness and courage to make the point.

4.Consider board stipends. To give a signal about the importance and
seriousness of board work, we should take another look at the
corporate
practice of payments for board service. Much of the nonprofit sector
has
summarily dismissed such stipends: isn't the board supposed to raise
money? Some large nonprofit institutions already pay board members
$200/meeting, but smaller organizations could consider small
stipends
such as $15/meeting. Such stipends reimburse board members for
expenses,
and demonstrate visibly that the agency places a real value on board
support and governance. (Some board members may choose to contribute
their stipends back to their organizations.)

5.Consider a paid secretary to the board. Local government councils
and
commissions often have their own staff, separate from the agency
staff
that reports to the Chief Administrative Officer. Boards of many
nonprofits have far-reaching responsibilities, and board officers
may
not have personal secretaries they can assign to board support. A
paid
board secretary, perhaps working only a few hours a week, can act as
the
board's facilitator, reminder, educator. Duties might include: board
correspondence, obtaining information from staff or others at board
request, clipping from professional journals for the board, minutes
and
follow-up for the board, meeting arrangements, and helping new
officers
with their responsibilities. Having their "own" staff can help board
m
embers be better supporters as well as governors.

6.Recruit governors. When recruiting, boards should seek members who
are
good governors as well as those who are good supporters: people who
know
clients as well as people who know philanthropists, people familiar
with
nonprofit management as well as those familiar with business,
operational volunteers as well as fundraising volunteers, people who
ask
critical questions as well as people who cheer. A diverse board such
as
this will keep the agency rooted in the world it serves as well as
in
the world in which it raises funds. In many cases, governors and
supporters may turn out to be the same people once governing
responsibilities are recognized and valued as much as supporting
responsibilities are.

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