The Nonprofit FAQ

Can a single board member wield too much power?
Robert D. Shriner ([email protected]) wrote April 1, 1996, to
soc.org.nonprofit:

I wouldn't say this is a trend or that it is related to the East
Coast.
I would say it happens occasionally in nonprofits all over the
country
(and all over the world, probably).

We work with many nonprofits in many different places; and it isn't
unusual to find that an influential local individual -- usually with
the
best of intentions -- exercises his clout in hopes of "straightening
out" an organization to fit his/her own conceptions of what the
organization should be doing and how it should work. Often the
organization already has serious difficulties, either financial or
because of conflicts about strategic direction and mission; and the
"angel" is largely trying to "fix" the problems. Too many times,
however, this is done without adequate communication with other
constituents of the organization.

In some cases, however, the "angel" has correctly diagnosed the
problem
and is blocked from carrying out necessary changes by an entrenched
coalition of staff and board members who are unwilling to face the
reality that the organization must be a "NOT FOR LOSS" organization
as
well as a non-profit organization; and they have refused to make the
necessary changes in programs. This can be a disastrous situation!!!
I
know of a number of cases in which such organizations have
ultimately
been forced into bankruptcy or to simply close because they were
months
behind in paying bills, payroll, etc., yet continued to operate as
if
they had money for all their programs.

Without knowing more facts about the specific situation you're
talking
about, it's hard to know whether this was a "good thing gone bad" or
a
"bad thing from the core". The fact that consultants were hired to
try
to deal with problems is certainly not an indication of
"corruption";
but one can and should be suspicious if the "angel" and the
"consultant"
are business partners (or similar).

I certainly don't see this as a "trend" -- it's an age-old problem .
. .
for for-profit organizations and for non-profit organizations . . .
and
for government organizations. People with strong ideas work hard to
put
their ideas into practice, even when they turn out to be wrong.
Unfortunate? yes! Corruption? not necessarily. More accurately, it's
mostly human nature.

Best of luck in your situation.


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Robert D. Shriner ([email protected])
SHRINER-MIDLAND COMPANY
Falls Church, Virginia, USA
Management & Economic Consultants
Tel: 703/237-8135 Fax: 703/533-9103
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