By Stacy Lloyd, Class 28
Lloyd Media Group
Class 28 Blog: This is a blog series about the experience and impact of Scottsdale Leadership’s Core Program. The views expressed here represent those of class members and not those of Scottsdale Leadership.
It is every man’s obligation to put back into the world at least the equivalent of what he takes out of it. -Albert Einstein
Serving on a nonprofit Board is a great way to “put back.” But first, read this blog!
Our last Scottsdale Leadership class was Boardsmanship Day. Honestly, I was fairly confident; it was going to be bor-ring. Imagine my surprise, when it was the exact opposite.
Our panel – charged with teaching us the roles, responsibilities and expectations of serving on nonprofit Boards – was a who’s who in the world of Arizona nonprofits. Steve Davidson, Class 10 (CEO, Boys & Girls Clubs of Greater Scottsdale), Pam Gaber (CEO, Gabriel’s Angels), Patricia Lewis (ASU Lodestar Center for Philanthropy & Nonprofit Innovation) and Eileen Rogers, Class 2 (nonprofit Board all-star) emphasized that it’s important to do your homework before serving on a Board.
Say you’ve found the nonprofit of your dreams. You’ve heard wonderful things about it. You’re eager to join the Board. Whoa… not so fast! Having passion for a nonprofit is critical, but so is doing your due diligence. There are essential things to grasp before joining a Board for the first time. Here goes….
You definitely want to meet the Executive Director.
It’s imperative to know that as a Board member, you are a fiduciary. You’re managing assets for another party, often with the legal authority and duty to make decisions regarding financial matters on behalf of the other party. No matter how the organization is structured or the degree of authority delegated to staff or committees, the Board and therefore the individual members are ultimately accountable.
Inquire if the organization has proper insurance coverage. Patricia Lewis said, “Don’t join a Board unless it has directors’ and officers’ liability insurance.”
Ask financial questions as it’s your responsibility to understand the Board’s financial statements. If you notice any red flags, stay away.
Board members must understand the facts and circumstances of accounting issues and the overall financial health of the organization. To do this, Board members must be actively engaged in the governance process. This means getting educated on Board governance and the nonprofit’s bylaws.
Ask about the Board term length and the expected time commitment. Don’t join something if you don’t have the time to serve. Oh, and be careful of any conflicts of interest.
Wait – you’re not done yet. Our experts said to test-drive the Board first. Join one of the nonprofit’s committees. You can see firsthand the organization’s inner workings. Plus decide if the current Board members are people you want to work alongside.
Don’t go blindly into joining a nonprofit Board. Put on your extra-strength spectacles and do your due diligence.