When Boards Go Bad

by hlt-admin

September 4, 2018

By Jessica Ticus

While problematic board behavior is all too common, early recognition of issues can help bring a board back on track. Here are a few observations from nonprofit leaders and board members.
Karen Hunt, Managing Director at First Bank & Trust, a division of Byline Bank located in Evanston, has been a member of numerous nonprofits boards over the past twenty years. She describes the early warning signs that a board is wandering, “When I see them talking about operations rather than fundraising and governance… you know they’ve lost focus.” She suggests board members and staff, “Look what’s on the agenda for a board meeting. Here’s where financial information is shared and high-level decisions are being made. Board sub-committees can meet in the off-months and get more into the weeds.”

Marybeth Schroeder, Vice President of Community Program at the Evanston Community Foundation, feels most people aren’t trained for their board responsibilities. “A board member’s job needs to be spelled out in writing.” While board orientations are great, she notices that, “They’re often about the organization’s mission and programs and not your role as a board member.” Bob Thomas, President and CEO of Winnetka Community House, has a particularly challenging time defining board responsibilities since this 107 year-old organization was founded and run by board members. “Changing a board’s culture is hard,” says this experienced businessman turned nonprofit leader. In addition to job descriptions, he’d like board members to evaluate their performance annually. Board self-assessment is seen as best practice for high performance boards, according to BoardSource, the industry leader in nonprofit board management and research.

Rebecca Cacayuran, Program Officer, Evanston Community Foundation, says succession planning is another big issue for boards. They’re often shocked at how much pro-bono time the founder has dedicated to their cause. “Before retiring, I recommend that the founder track actual time allocated to work, and have a robust conversation with the board about the true cost of leadership.” Both leaders and board members cite fundraising as the area in which expectations diverge and boards go bad. Board members may feel their time is their contribution. “One hundred percent of your board should be financially supporting the organization,” Ms. Cacayuran says. “Your organization needs to be in the top three institutions the board member supports. Not all board members need to give the same amount, but their gift needs to be significant to them.” Mr. Thomas notes that while the Winnetka Community House board members are generous as donors as well as with their time and talents, the organization needs to grow their fundraising activities. “Board members can sign letters, open doors or come on calls with me,” coaches Mr. Thomas. Ms. Hunt is a fearless fundraiser. “Because I support an organization, I have no problem asking others to join me. I have people who see me coming and hide under their desk. But, you know what, they can always say no.” Keeping board members focused on serving your organization requires training, coaching and constant vigilance

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