Laws governing a nonprofit organization require that it is accountable to the public and specifically to its population served. This is accomplished by establishing an effective board of directors. There are many factors that can influence a board's effectiveness. Among the many factors of influence are chemistry, apathy, and inexperience.
Board Chemistry
Poor chemistry among its members can lead a board down a long path of one way communication and rivalries. Members of this dynamic will often participate in counterproductive triangulation and undermining of collective authority. Motives become skewed and productivity obsolete.
Board Apathy
Apathetic board members are not engaged in the organization. These board members are typically unaware of what is going on in the organization, and worse yet don't attempt to find out. Board apathy is easily identified by poor turnout to or participation in board meetings.
Board Inexperience
Not all effective board members come to the table with previous experience, but they should arrive with the desire to understand their responsibility. A common problem for board members is that they just don't know what their job entails.
These are common and seemingly obvious causes for struggle. However, many organizations carry on in this fashion just long enough to stop noticing imminent failure. If you are a board member, identifying warning signs can help your group to make crucial strides toward repair. If you are a donor, assessing a board's effectiveness can help you to make informed charitable investments.
Warning Signs of a Struggling Nonprofit Board
- Frequent turnover of Executive Directors and board members;
- Difficulty recruiting qualified board members;
- Poor board and committee meeting attendance;
- Lack of participation or poorly planned meetings;
- Triangulation, gossiping, or 'meetings' after the meeting;
- Recurring and unplanned deficits;
- External request for an audit;
- Lack of communication between the Executive Director and the Board;
- The absence of or infrequently addressed Conflict of Issue Policy;
- Meetings are run by one person talking or "rubber stamping" of the Executive Directors recommendations;
- Disregard for board policy and procedures.
As a board member, if any of these warning signs are present among your group, it might be time to revive it. You can begin with defining the roles of the collective board, as well as those of each individual member. Consider board training and consulting. Finally, compile all that you have learned into a board member handbook. This tool can empower effective functioning among future board members.
As a donor, ask to be invited to a board meeting. This is a step that is not taken by any of the Charity Rating Companies. Guidstar, Charity Navigator, and the Better Business Bureau primarily rate financials and the 'word' of the organization. If you want accurate insight into the legitimacy and credibility of your prospective grant recipient, you will want to observe the governing process and the basic dynamics among the board and executive director. You might find an overpowering Executive Director running the show. Alternatively, you might find a strong-arming Board of Directors. Either way, uninformed members will struggle to put on a performance.
Nonprofit organizations require the optimal co-functioning of donors, an executive team/staff, a governing board, and the population at large. Understanding this delicate balance is key to success, while complacency to it can result in ineffectiveness or unethical practices. Whether you are a donor or a board member, you have front row access into these dynamics, thus enabling you to identify areas of strength and weakness and the opportunity to respond accordingly.
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