Tag: fiduciary responsibilities

September 2, 2011 DonorDreams Board development, volunteers

Secret board development memo

For the last four days, this blog focused on board development by sharing input from real, live board members thanks to an online survey I randomly sent out to people in my email address book who I know currently serve on a non-profit board. During the week, one volunteer sent me an “internal memo” from their company encouraging their employees to join non-profit boards.

As a non-profit leader, I always wanted to be a “fly on the wall” in the corporate boardroom. So, I found this memo to be an interesting glimpse into what motivates companies that encourage their employees to “sit” on boards. Here is a copy of that memo (note: I’ve changed names to protect the volunteer who forwarded this to me. Please know that this is a very large firm, which is similar to the example written about in Monday’s blog):

One of [Company X’s] strategic goals are to elevate the Firm’s visibility through leadership in our communities. A key component of this goal is to encourage employees at all levels to become involved with philanthropic and charitable boards. Joining a not-for-profit board:

•   Offers an opportunity to give back to the community in which you live and work
•   Provides networking opportunities with other dedicated community leaders
•   Enhances personal relationships beyond one’s technical circle of colleagues
•   Develops valuable business management skills

If you think you might be interested in joining a not-for-profit board, you are not alone. Most [Company X] employees are not board members, but there is no stopping those with a little passion, dedication and commitment.

Please join Not-for-profit Partner [John Doe] on Wednesday from 8:30 p.m. to 10:00 a.m. in the training room, when he presents “Board Training and Placement”. He will outline everything you need to know to join a not-for-profit board, including:

•   Duties of a board member
•   What to expect as a board member
•   How not-for-profits differ from other organizations
•   How to find an appropriate board to join

The session is open to all, regardless of your position with [Company X]. All you need to bring is the desire to get involved. If you are interested in attending this session please use the voting button above to confirm your attendance and … if you are already on a board; please join us to share your experiences.

For your convenience a calendar invitation has been attached, just double-click it to add this session to your calendar.

I find this memo very interesting because it helps me see more clearly why some people feel compelled by their employers to “sit” on a non-profit board. It is also interesting to see what perceived benefits companies think they receive through their employees board involvement.

If I were still an executive director, I might memorize the contents of this memo, and vocalize these perceived benefits of board membership during the recruitment process. Of course, I’d probably beat a dead horse when it came to talking about board roles and responsibilities (esp around fundraising).

What does this memo tell you? Was there anything you found interesting in the content? If you could, how would you change your agency’s board development processes? Do you see a role for donors in the board development process? If so, what does that look like? Please use the comment box to share your thoughts because we can all learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

September 1, 2011 DonorDreams Board development, volunteers

Board volunteers bark back: Part 3 of 3

Monday’s blog post titled “Hey board members: Sit – Lay Down – Roll Over” looked at board members who agree to “sit” on non-profit boards but don’t seem to understand they’ve been asked to “serve” on those boards. For the last two days, I shared some of the feedback that I’ve received from actual board volunteers. While I will share a few last tidbits of feedback today, I plan on sharing an “internal memo” from a very large company to its employees about why it encourages them to sit/serve on non-profit boards. I suspect the memo will be eye-opening for some of you. Stay tuned!

As you know, I sent an online survey to a number of board volunteers a few days ago with questions about board development. The final question I asked board volunteers was an open-ended question: “There is always room for improvement, even in highly functioning non-profit organizations! What are some things you wish your non-profit board would do (or do better) to get highly motivated and engaged individuals sitting around your boardroom table?” Here were some interesting responses:

“I would start by changing the question to ‘serving’ instead of sitting 😉 Next, is to set the expectation during the recruiting process. I still find that he 80/20 rule applies even when everyone participates. So, the next step is to recruit more and be willing to cut fat at the end of a term. As the quality of participation grows it will spread throughout the board. This is my hope anyway.”

“I think a good bit of it comes from expectations established by leaders on the board. The board members will only work as hard as the leadership team.”

“. . . assign an older board member to mentor new members ( preferably not close friends ), and orient new board members on organization’s day-to-day activities and relationship between national and local organizations.”

“Consistency. We have a board development plan (as well as other plans), but do not operate with it consistently. That is why I answered “no” to question #1. I think our board has great ideas; we just have issues with follow-through/up.”

“First things first, we have to keep the current board members engaged and motivated! This is always an issue. Depending on how your organization is run, you have to shop for board members that have a personal tie to you. I have served as the President of our board with the Boys and Girls Club. When I was little [childhood member], I was at the Boys Club everyday! That’s what keeps me going. In summary, you have to find people who either have a tie to the organization or have a passion for similar organizations. You can’t simply bring in people who are nice!”

“Involved them in committees. If they don’t participate in committees, ask them how they can contribute. If they don’t, they should be removed from the board.”

“We brought on consultants to work with the executive committee. We worked closely with our national organization.”

I think these board volunteers have a number of great suggestions. I especially liked the last one about bringing on a consultant; however, I suspect that you can probably see through my bias. LOL

Please use the comment box below to share what you’re doing at your agency. Are you firing volunteers? Assigning mentors to new members? Using committees to engage existing board members as well as prospective future board volunteers? Are you doing a better job with prospecting and recruiting? We can all learn from each other! I hope you enjoyed the last few days of hearing directly from board volunteers.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 31, 2011 DonorDreams Board development, volunteers

Board volunteers bark back: Part 2 of 3

As you know, I sent an online survey to a number of board volunteers. The fourth question I asked board volunteers was an open-ended question: “How would you answer the question posed in the Facebook message from my non-profit friend? As a reminder, her question was ‘What can we do to help shift that mentality – to help professionals and individuals with the means to give that it is a SERVICE to the greater good, not just a spot to occupy around a conference room table?'” Here were some interesting responses:

“Make it clear to prospective board members that they will be expected to do more than attend meetings…tell them specifically what service they will be expected to render.”

“Provide board members with reminders and updates regarding what their time and efforts have accomplished. (i.e. what impact their service has had on the organization). Focus board meetings on completing service and not merely approving what the director or CEO has done in the organization.”

“You give board members assignments with deadlines. This makes them responsible to the ’cause’.”

“Be very specific about expectations before confirming a new board member and then make sure orientation is pointed about what is required of board members. Having a board “retreat” to re-engage board members would be a great way to remind everyone of their commitment.”

“From a non-profit perspective, demonstrating the impact that the non-profit has on the community is probably the best way to shift that mentality. The real key is to shift the mentality of the mentor/supervisor of the professional, so that they look at the service opportunity from a different perspective. Attorneys typically bill by the hour, so we are very conscious of time and the opportunity cost when we are not working on billable matters.”

“At every monthly meeting we began by reading aloud the agency’s mission statement and then individually we reported what we did that month to achieve our board goals (attended subcommittee meetings, went on a fundraising call, meet with staff, etc.) We only took a couple of minutes each to briefly stated what we have done.”

I find it so interesting that our board volunteers point to the prospect identification, recruitment and orientation activities associated with board development as a way to facilitate a paradigm shift, but no one talks about annual year-end board volunteer evaluations. I suspect that many non-profit organizations take time to write technically proficient board development plans, include evaluation procedures and tools, and then ignore (or dramatically underutilize) the evaluation portion of the plan.

Attention non-profit professionals! If you want to change the mentality on your board from “sitting” to “serving,” I strongly recommend employing your board volunteer evaluation tools. While it is not your role to personally do the evaluating, you must provide support to your board development volunteers and coach them through this annual process.

Please use the comment box below and weigh-in with your thoughts on the feedback provided by some of our board volunteers in today’s blog. Do you find annual board volunteer evaluations to be difficult at your agency? Do you have any tips or tricks to share with your fellow readers? A few of the survey respondents suggested that “accountability” needs to be added to a board’s culture . . . how do you accomplish that at your agency especially when many board members are likely your best donors? We can learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 30, 2011 DonorDreams Board development, volunteers

Board volunteers bark back: Part 1 of 3

Yesterday’s blog post titled “Hey board members: Sit – Lay Down – Roll Over” looked at board members who agree to “sit” on non-profit boards but don’t seem to understand they’ve been asked to “serve” on those boards. So, I developed an online survey and randomly emailed 32 board volunteers. In that survey I asked questions about their non-profit’s board development practices and their opinion on how to recruit more engaged board volunteers. I want to thank the 17 individuals who took a little time out of their day to respond to the questionnaire. I will share the results of my unscientific questionnaire with you today, tomorrow and Thursday.

My first question to board volunteers was: “Does the non-profit board on which you serve operate with a board-approved, written Board Development Plan?” Here were their responses: 14 said YES, 2 said NO, and 1 said I don’t know.

I don’t know about you, but my heart is uplifted to see so many “yes” responses because non-profit agencies will NEVER recruit engaged board members to “serve” on their boards without a written strategy in place. In my opinion, organizations need to have a written board development plan that spells out how to identify, prioritize, recruit, orient, recognize, and evaluate potential prospects and actual board volunteers. I am reminded of this old proverb, “Those who fail to plan, plan to fail.”

My second question to board volunteers was: “Does the non-profit board on which you serve evaluate board volunteers every year?” Here were their responses: 9 said YES and 8 said NO.

These responses tell me that many board development plans probably only focus on recruiting and very little else. Board development plans that don’t have an annual volunteer evaluation component are missing an opportunity in my opinion. I suspect the biggest reason many plans don’t call for annual evaluations is because people hate to be judged. I suggest metrics such as: board meeting attendance, committee meeting attendance, fundraising participation (cultivation, solicitation and stewardship), and volunteerism. The annual board volunteer evaluation doesn’t have to be judgmental . . . it can be designed as a way to: 1) look back and celebrate their contributions and 2) ask them how it is going and what needs to change in the upcoming year for their volunteerism to be meaningful and rewarding. I’ve personally found that volunteers who are disengaged typically use their annual evaluation meeting to quit or make the necessary adjustments to engage at a higher level.

My third question to board volunteers was: “If you answered YES to the previous question, please check all forms of evaluation that your organization uses to evaluate board members.” Here were their responses:

8 respondents said: Every board volunteer completes a self-evaluation once per year”
8 respondents said: “The Board Development Committee completes an evaluation on each board member once per year”
4 respondents said: “Every board member is asked to complete an evaluation focused on the entire board’s effectiveness”

Multiple board evaluation tools are effective. Self-evaluation allows volunteers to take a good hard look in the mirror at themselves, and peer evaluation provides an external point of view. When done in conjunction with each other, the evaluation process can be powerful. When only one form of evaluation is used, it is like a peanut butter and jelly sandwich without the peanut butter.

Tomorrow I will share a number of respondents’ answers to this question: “How would you answer the question posed in the Facebook message from my non-profit friend? As a reminder, her question was “What can we do to help shift that mentality – to help professionals and individuals with the means to give that it is a SERVICE to the greater good, not just a spot to occupy around a conference room table?” Stay tuned because I assure you the answers are interesting!

If your organization uses an annual board volunteer evaluation process, what are your evaluation metrics? How do you conduct your year-end meetings? Who is involved? Do you think it is effective and why do you think that? Please use the comment box and weigh-in because we can all learn from each there.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 29, 2011 DonorDreams Board development

Hey board members: “Sit – Lay Down – Roll Over!”

Have you ever been at a meeting of your board of directors, looked around the table as they methodically plowed through the agenda, and come to the conclusion that no one was really engaged? Maybe you thought … “Ugh! They’re just sleep walking through the board meeting and regurgitating whatever had been fed to them in the days prior to the meeting.”

A few weeks ago, a non-profit friend of mine sent me a similar Facebook message with an interesting question:

“While on a CEO call today at a rather large, rather highly respected law firm, I noticed that the ‘Head Cheese’ stated (more than once) that the partners and associates in his firm ‘sit’ on non-profit boards. It struck me that they have the expectation to sit, not SERVE on boards. Attorneys are notoriously conscious of the words they choose to use. So, it struck me as interesting the first time it came out of his mouth. Then he said it again. And again. What can we do to help shift that mentality? To help professionals and individuals with the means to give that it is a SERVICE to the greater good, not just a spot to occupy around a conference room table?”

I thought this was a GREAT observation! It conjured up the image of my dog, Betrys (who is the featured picture in today’s blog post), sitting around a non-profit boardroom table. Being an obedient dog (most of the time), I imagined her doing exactly what she was told by the executive director and agency staff.

I highly doubt that any of us would like a boardroom full of obedient dogs responsible for the future of our non-profit organizations. However, I am left wondering “how many of our non-profit organizations have constructed boards with volunteers whose expectation is to just ‘sit through meetings’ and occasionally pitch-in when told they are needed to do something?”

So, out of curiosity, I put together an online survey yesterday and emailed it out to 32 random non-profit board volunteers in my address book. I asked them questions about their agency’s written board development plan. I also shared the Facebook message from early in this blog post and asked them how they would answer my friend’s question. Over the next few days as I collect responses, I will share them with you here in hopes that we can all learn from each other.

In the meantime, please use the comment box below to weigh-in with what you think the answer to my friend’s question should be. What do you do at your non-profit organization to ensure you don’t have a bunch of dogs sitting around your boardroom table? How do you prospect new board members? What criteria do you use to evaluate those prospects? What does your recruitment process look like? Is there an orientation for new recruits? Do board volunteers get ‘evaluated’ on an annual basis and what does that look like? What role (if any) do donors play in your board development process? Is there a role for donors here?

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 22, 2011 DonorDreams Board development

I quit

A few days ago, an Executive Director friend of mine from Indiana emailed me a link to an article in Philanthropy Journal titled “Exodus of Executive Directors Expected“. I encourage everyone to read this article in full because it is deeply disturbing. It is also very telling about the state of the non-profit sector.

According to a survey cited in the article, 67-percent of respondents said they plan on resigning their executive director position in the next five years. While there are many reasons cited, I found it most interesting that many of the reasons deal with the board of directors. I suspect much of this originates from conflicts such as:

board members not engaging enough in fundraising and resource development
board volunteers having unrealistic expectations of staff
disagreements over how to address economy related issues (e.g. can we cut our way out of this budget hole versus let’s roll up our sleeves and do some fundraising)

We can go on and on with possible examples, but let’s stop here because all of this really isn’t the issue. There are two bigger problems

Only 17-percent of organizations who participated in the survey have written succession plans.
Fundraising is ALL about relationships and when human capital starts leaving your organization it can impact the relationships your organization has with volunteers and donors.

So, there are a few options I suggest you start considering:

Be proactive and ask your organization’s HR Committee (or set-up an ad hoc committee) to start working on written succession plan. Here is a link to some great resources published by The Foundation Center.
Roll up your sleeves and start doing the hard work associated with engaging and reinvigorating your board. I blogged about this a few weeks ago. Click here if you want to re-read the post I titled “Really? An Exhausted Board?”
Ask different board members and fundraising volunteers to engage in stewardship of your existing big donors. When your most important donors have multiple relationships with board and staff, they are less likely to be upset when their one and only connection to your organization quits.

While it is almost impossible to prepare for someone’s resignation, there are things you can do to get your organization in the best possible position to deal with it when it arrives. And keep your fingers crossed that it doesn’t come in the form of a YouTube video like this one “The BEST EVER way to quit a job!! HOAX“.

Do you sense frustration out there among non-profit staff? Do you agree with the Philanthropy Journal article? Do you think there are ways to avoid the exodus or best prepare for a scenario like this? Please use the comment box below and share your thoughts. We can all learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 21, 2011 DonorDreams Board development

I will survive

With more than 15-years in the non-profit trenches, I’ve come to the conclusion that non-profit work is incredibly difficult and demanding. This probably explains why most of the “non-profit lifers” I know seem to have a theme song that defines their non-profit spirit and serves as a motivator during the tough times.

My non-profit theme song is none other than “I Will Survive” by Gloria Gaynor. Click here to enjoy a few tracks from this iconic song.

The reason Gloria found her way into my head this morning is because of a conversation I had with a dear friend about services I’m thinking about including in the business plan for my new consulting practice. She said something that really concerned me about the state of our non-profit community. Of course, it was Gloria that used to get me through troubled times, which is why she probably returned this morning to soothe my troubled non-profit soul.

Specifically, the thing she said that still has me in its grips is that most non-profit organizations she works with or watches are in “survival mode” and they don’t seem to have the time or resources to engage in capacity building, technical assistance or training. She went further and shared her observations that non-profits are mostly engaged in budget trimming, downsizing, and complaining about the economy and their “fate”.

On a “personal note” … if this is true, then my new business will have more than a few challenges. It is a good thing I LOVE challenges!

On a “bigger picture note” … if this is true, then we (the non-profit sector) have a bumpy road ahead of us because I’ve always thought that “survival mode” was a euphemism for a slow and painful death. Lou Holtz said it best when he said, “In this world you’re either growing or you’re dying so get in motion and grow.”

So, here I am stuck with many questions in my head and thought I’d pose them to my blog subscribers and anyone listening out there:

Do you share this opinion that non-profits are hunkered down in survival mode and not investing in revenue growth, board development, program development and expansion?
If any, what technical assistance services do you see other non-profits investing their time, energy and money into?
Where do you think non-profits should be focusing their time, energy and resources that will give them the best chance to survive over the long-term? Board development? New donor cultivation efforts? Current donor stewardship efforts? Planned giving? Endowment building? Annual campaign development? ePhilanthropy? Strategic Planning?

Please use the comment box to weigh-in with your thoughts. Your input will help me with my business plan, but I think it can also help others get a better idea on how to “survive” during tough economic times. Because if we fail to see that we can’t “cut our way to better health,” then I will have to alter my version of Gloria Gaynor’s “I Will Survive” to something that looks like this … click here to see this ugly alternative ending.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 14, 2011 DonorDreams Board development

Really? An exhausted board?

I opened a LinkedIn message from an old friend yesterday who asked me the following question: “I’ve got a board member that wants to give a challenge gift. What is the best way to present this to the board of directors that is exhausted of giving?”

In my response, I encouraged him to engage the donor as well as a few key board members in answering this question. However, this email weighed on my mind during a sleepless night and I awoke this morning both tired and with many more questions such as:

How exhausting can it be to open a checkbook and write a check? It isn’t like running a marathon! You have to watch this YouTube video on “Marathon Exhaustion“. If this is what your board looks like during any of your fundraising campaigns, then we have to talk soon! LOL
Who is responsible for situations like this one? Is there shared blame between volunteers and staff? Or can this quite simply be a case of bad staff leadership?
Is it possible that a “challenge gift” can solve a board burnout issue? What should be done to inspire and engage board members to once again become enthusiastic donors and volunteer solicitors?

After giving it some thought, I came to the realization that I’ve seen situations like this too many times. Oftentimes, this is what is going on:

Both staff and board lose sight of mission and they skip from fundraiser-to-fundraiser. It almost sounds like that “It’s time to make the donuts” commercial that Dunkin Donuts ran forever ago.
Board and staff start taking each other for granted and the tension builds.
Apathy sets in … board volunteers fall short on a few fundraisers and staff somehow magically find solutions by either trimming expenses or going out on solicitation calls by themselves. This creates a negative feedback loop and the cycle has begun.
Everyone has gotten too cozy with each other and board development efforts have been put on ice. New volunteer prospects aren’t identified or they come from the same old inbred circles. Volunteer training opportunities are not invested in. Annual board volunteer evaluation systems are shelved.

While I can make a living by blogging on this topic alone, let me just share a few things for you to think about. There are 9-keys to inspiring your volunteers and you need to be firing on all nine cylinders to be successful: 1) maintain mission-focus, 2) involve everyone in planning, 3) create a sense of “positive” urgency, 4) develop accountability tools, 5) celebrate ALL efforts (both successes and failures), 6) bring a sense of organization to everything, 7) make sure all meetings are well run and important, 8 ) set expectations up front during the recruitment process (stop ‘soft selling’ people), and 9) invest both time and money in training opportunities for volunteers. I want to thank Boys & Girls Clubs of America for teaching me these 9-keys because they have forever changed my life.

Here are two additional articles on this subject that I thought were pretty good:

Gail Perry Associates FIRED-UP FUNDRAISING: “How to unleash your board members energy for fundraising“
Fundsraiser cyberzine: “5 steps for preventing volunteer burnout“

So, if the shoe was on the other foot, how would you have advised my friend? Do you have any thoughts you’d like to share? How have you dealt with similar sitations at your organization? What have you done to put the “FUN” back in fun-draising? How have you continually kept mission-focus? Please use the comment box to weigh-in. We can learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

June 22, 2011 DonorDreams Donor-centered fundraising

Donors and organizational politics

A good friend of mine (and a reader of this blog) sent me an email yesterday suggesting that I start reading another blog called “The Third Sector Report“. Being a firm believer that good writers are good readers, I clicked the link and tried that blog on for size. This week’s post by Jeffrey Wilcox CFRE talks about politics inside of non-profit organizations.

Wilcox’s words hit me sideways and personally. They took me back in time to board meetings where two or three groups of board members were discussing different building options prior to beginning work on a capital campaign. Some volunteers wanted us to acquire land and build in one place. Others wanted to expand on our current site. Still others (including one of our biggest and most influential donors) wanted us to acquire an existing building and renovate.

When you get a bunch of people together who are mission-focused and passionate, politics can’t help but enter the equation. Sometimes it is paid staff at odds with board volunteers, and it really gets interesting when donors get involved.

Wilcox suggests that politics is unavoidable and urges non-profit leaders to develop a political management toolkit. There are lots of awesome tools one of which is a written succession plan. <Yikes!> However, I don’t want to steal his thunder. I urge you read his blog post for suggestions of the other tools to include in your toolkit.

In the end, I am convinced this “political management toolkit” is a great opportunity for non-profit leaders to get donors involved. CEOs and development professionals are wasting an engagement opportunity if they sit down and pound out a communication policy by themselves. I don’t see any problem with involving key donors and board volunteers in development of the executive director’s annual performance management plan.

Some donors just don’t have time to join the board of directors, a standing committee or a special event committee. So, why not ask them if they want to help out with a small project that has a distinct start and end? If you can make the case for why these tools in your political management toolkit are important, you will likely find a few donors who are willing to help. In the end, that donor is likely to be more engaged and as we all know … “money follows involvement”.

The bonus, of course, is that you’ve simultaneously built more organizational capacity in addition to deepening key donors’ engagement. Additionally, if the project involves something that a donor is passionate about, then you are modeling what a good “donor-centered” resource development professional looks like.

Have you ever included key donors who are not board volunteers in short-term projects? What was your experience and the results? Please weigh-in and let us know.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

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