Random Notes
Over the last four months I have written about board membership and governance of our community institutions. The role of the board of directors is a very important role in maintaining the organizations that provide special services and resources to our community. They are the services that do not fall within the responsibility of our levels of government and they provide services that are not reliably profit generating, and so they are not attractive properties for private sector business organizations. However, these services and institutions give our communities their character and their heart. We cannot imagine living in a community without services and care for our most vulnerable populations, without a service to care for abandoned pets, without amateur sports teams and training institutions, without art galleries, festivals, theatres, orchestras, and dance ensembles. All of these organizations are part of what is known as the voluntary sector. The institutions and services would not exist without the generous contributions of time and financial resources from community members. Among the important roles for volunteers in these organizations is the role of board member.
When we serve on community boards, we are entrusted with the care and nurturing of institutions that play a vital role in the quality of life in our regions. While these organizations may seem financially fragile at times, it is worth noting that the average life of a charitable organization is longer than for profit businesses. A 2016 study by McKinsey found that the average life-span of companies listed in Standard & Poor’s 500 was 61 years in 1958. In 2016 it was less than 18 years. The authors of the study predicted that 75 percent of the companies listed on the S&P 500 in 2016 would not exist in 2027.
Saying thank you
When you are on a board, there are many things to learn, and it can be time consuming. We serve on volunteer boards with our very scarce time, and it is normal that we would also want to be thanked for our service. A wise and well-structured organization will have developed a range of ways to thank their volunteer board members. This may be through board member recognition in programs and on the web-site. It may be a special board appreciation dinner or an invitation to a special event. Organizations should also be mindful of saying thank you to board members when their term of service is completed. This can be done in a number of ways that board members tend to appreciate.
Board members, perhaps because they are serving with generosity of their “free” time, often forget to thank the staff members in the organization. While board members are volunteers and staff members are paid, it is important for the board to remember to show appreciation and respect for the employees of the organization. Staff members of not for profits are often conquering significant challenges of many types without adequate resources and often with salaries that are not competitive relative to salaries in government or the private sector. Treat the staff with respect and courtesy, and remember to show appreciation for the work accomplished.
Treat your executive director fairly
Many board members are managers or employers in their personal lives, but sometimes they don’t bring their sensitivity of management issues to their work on boards. One of the board’s primary responsibilities is the hiring of the CEO or Executive Director of the organization. Boards want to hire talented, well trained, hard-working senior leaders for their organization. There must be consideration for nurturing and supporting that person once the hiring has been accomplished. It is far too easy for boards to take the senior staff person for granted or even to treat the person with hostility and very poor personnel management skills.
Serving as the executive director of a charitable organization is complicated work. One of the well-recognized risks is the risk of reporting to a board of directors. Unless there are very good systems within the organization outlining the treatment of the executive director, clear guidelines for regular assessment and feedback, and a fair and experienced board chair, the organization can easily get into real challenges in its relationship with the executive director. If the board chair does not set firm guidelines for the meeting, it is very possible for a board meeting to descend into a situation in which the executive director feels under attack by a large group of people. This is a particular challenge during difficult circumstances that all organizations can face.
One year when I was reviewing the terms of the Director’s Liability Insurance with the insurance agent, I asked the agent how the Director’s Liability Insurance is most frequently used. He said he had just attended a symposium on uses of various types of insurance, and he had learned that Director’s Liability Insurance is most frequently used for boards who are being sued by former executive directors for wrongful dismissal. Creating a fair and reasonable work environment for the senior staff person is very important, and it also sets an example of the way in which the board expects all of the employees of the organization to be treated.
For organizations, treat your board members well
It is also important for organizations to have unrealistic expectations of their board members. It is always important to remember to create an environment in which board members can contribute their ideas and experience to the work of the organization in a respectful environment. Board members should not be selected on the perceived health of their bank accounts. Wonderful contributions to the life and health of the organization can be made by people of moderate means. So board members should not be selected for their perceived capacity to make major gifts to the organization. Board members are not ATM machines for organizations perpetually low on funds. All board members should make a donation that feels significant to organizations on which they serve on the board, but the organization must also have reasonable expectations of the charitable capacity of their board members. There is an important role for board members to play in resource development needs of the charity, but board members are sensitive about being continually requested to ask their friends and acquaintances for funds for the organization.
Perhaps the duties and responsibilities of board membership may seem daunting and complicated, but despite the potential pitfalls, there is great value in serving on the board of an organization you care about. One of the best things is a shared sense of purpose with a group of community members who may not be people you have had the opportunity to work with in the past. Board members of charities tend to be skilled, bright, and kind individuals who have a generous spirit and concern for their community. The rewards of this community work are immense, and the good that you can do is very satisfying.
Trudy Schroeder provides project planning and management services to the community through Arts and Heritage Solutions.
