Nonprofit boards are complex entities. At the most basic level, they are a group of passionate volunteers. What makes them complex is the scope of their responsibility as volunteers and the impact they have on the organization they serve. The mission of a nonprofit organization is its north star. All business decisions the organization makes should be to help the organization achieve its mission. The board has the ability to change that mission and that is powerful. At the highest level, it feels existential. Having an effective board and executive leadership team working together is central factor in successful organizations.
In most nonprofit organizations, boards have fiduciary responsibility over the nonprofit. You can read more about that from the National Council of Nonprofits. The board has the responsibility to hire, review, and change the CEO as needed to deliver the mission of the organization. They are typically removed from day-to-day operations but commonly serve on committees that help them carry out their duties as fiduciaries. What’s in the scope of fiduciary responsibility? If you are new to nonprofit service, or do not work directly with the board, how they operate might seem mysterious. Fiduciary responsibility at its core is simple, the board needs to make decisions in the best interest of the organization. Most of those are either financial in nature or related to the organization’s strategic direction. While the board is not involved in the day-to-day actions of nonprofit professionals, they set the course for why nonprofit professionals do the work they do. Actions, at the staff level, stem from strategic direction set by the board to ensure the organization thrives.
How are board members appointed? That varies by organization. Some organizations have board committees dedicated to recruiting and vetting new members. Other boards take the recommendation of executive leadership. Some boards solicit nominations from the public or member base. All boards approve new members in a way that aligns with the rules established in the organization’s bylaws. The number of board members, leadership roles, and length of service for each board member and board officer is also outlined in the bylaws.
Engagement with the board by nonprofit staff is different in every organization. In smaller nonprofits, the board is often very engaged as volunteers in addition to their service as leaders. They often take an active role leading key events and serving as fundraisers for the organization. In larger nonprofits, boards typically work in committees that partner with executive leaders to understand, advise, and support the needs of the organization in consultation with that staff leader. Read an example of that here from a past post. The board’s sole employee is the CEO, or top executive. That person is responsible for the hiring and leadership of all other staff positions.
In a healthy nonprofit, there is a clear understanding of the roles and responsibilities of the board and chief executive. The board understands its purview as fiduciary and allows the CEO to freely execute the strategy the board sets. The organization’s strategy is commonly set in partnership with the CEO and includes input from staff and key stakeholders. Ensuring everyone, board and staff, remain in the appropriate lanes falls to the responsibility of the CEO and board chair.
The relationship between the board chair and the CEO is one of the most important professional relationships in a nonprofit organization. There is a clear reporting relationship but the board chair also functions as an important thought partner and sounding board for the CEO. Chemistry is particularly helpful with this particular pairing, respect, professionalism, and shared understanding of goals is critical to ensure a high functioning organization. Because of the nature of boards, the individual serving as board chair changes with board terms. Often this change occurs multiple times over a CEO’s tenure. Each individual assuming the role as board chair should bring individual strengths that both inspire and support the CEO.
Having been a staff-level nonprofit employee and having been a senior executive, I’ve come to think differently about the role of a boss. When I was younger, I feared my boss. I saw them as a person to take direction from; I was afraid to make them unhappy. Now, I think of my boss as a professional thought partner. Sure, I will take direction from the CEO but I’m also comfortable challenging their ideas and delivering respectful pushback when I have a different opinion about how to best serve the needs of the organization. The confidence to push back as an organizational leader is important. CEO’s should be surrounded by people who partner with them to make the organization successful. Hiring people who always agree with you does not inspire growth. Decisions should ultimately be made to serve the organization’s mission and good ideas can come from anywhere. As a CEO, it’s important to surround yourself with people who challenge you, people who are comfortable pushing back, and people who you know at the end of the day share the same goals as you in service to the mission.
I heard a great quote earlier this year, “feedback is a gift.” It came from someone 15 years younger than me and I adopted it immediately. She was asking for feedback in her role. I admired her openness to hear how things were going. She was open to change, she wanted to do great work, and she wanted our team to be successful. What an inspiring mindset! As a senior leader, I want feedback. I want to know what I can do to be better and I want those conversations to be foundational in my relationship with colleagues and volunteers. Feedback is a central element to partnership. When you think of feedback as criticism, it can be scary. But when you look at it as advice and partnership, or as someone rolling up their sleeves and joining you to spur growth and foster a culture of continual improvement, feedback is a gift.
