Serving on a nonprofit board is a privilege for those interested in advancing a mission that serves people and strengthens communities. While it is fulfilling, those serving on boards must be keenly aware of their role and legal obligations regarding duty of care, obedience and loyalty.
First, when leading as the Board Chair, put the needs of the organization above all else and resist the temptation to advance an agenda that lacks transparency and can result in costly implications for the organization. Your legacy can ride on this. Additionally, explore opportunities for the organization to participate in good governance training to stay current on leading practices of high performing nonprofit boards.
For those who are new to serving on a board, learn the environment in which the nonprofit operates to ensure your voice is heard on meaningful issues. Although you are contributing your unique talents to the board, commit to setting an actionable plan to master the mundane. Some examples include:
Master the Bylaws. Adhering to bylaws helps ensure the fairness of your board decisions and provides protection against legal challenges. Understanding the bylaws is a great way to establish yourself and give you the edge over those who have not taken the time to read them. Create a plan to master the bylaws through a coach experienced with board governance. This is easy to do within the first 90 days but unfortunately can be easily ignored. It’s your choice!
Understand Financial Statements. Financial statements come with various warning signals but unless you have experience dealing with them, it can be overwhelming to understand exactly what is being stated. Yet, these are critical pieces of financial information that call for your vote to approve. If you find yourself at a disadvantage, elevate up and familiarize yourself with key ratios through various training opportunities rather than rely on staff to dummy down the information. You don't need permission to go out and learn what to look for in financial statements. Empower yourself. It’s your vote!
Read the Audits. Many nonprofits are required to have financial and program audits depending on size and funding. Audits tell a story on the financial condition of the organization, compliance with programs and outline any weaknesses or deficiencies that must be addressed. However, understanding the energy behind the story of these audits is at times complex but can be simplified with the right training. Don't overlook reading the footnotes as they contain valuable information. Mastering one audit at a time is all it takes. It’s your advantage!
As a board member, you are leading at the highest level so master the mundane, contribute with confidence and go for impact!