A Bill of Rights

In the United States alone, there are nearly two million nonprofit organizations and 501(c)(3) charities; 10 Million worldwide. Having worked in and with the social sector for many years, I have been fortunate enough to see the gamut as it relates to well-run organizations and those that are not. The social sector is varied and complex. There is certainly not a rigid formula as to what makes a great nonprofit although best practices abound.  

According to a Nonprofit Sector Brief written in 2019 by the Urban Institute, approximately 1.54 million nonprofits registered with the Internal Revenue Service (IRS) in 2016, an increase of 4.5 percent from the previous decade. Of those, approximately 35 percent that registered with the IRS reported an annual income of $50,000 or greater. $50k is the baseline that the IRS set to report income. 65% of nonprofits in the United States aren’t hitting that annual income baseline. The reasons are just as varied and complex as the sector is.

Recently, I undertook the mammoth task of writing a book specifically for people thinking about starting a social enterprise or in the early start-up stages. One of my main messages is to look at all the options before landing on a 501C3 designation and ensure your business plan is rock solid. Of course, in this 100-page workbook, I do go into details relating to the board of directors, accessing capital, marketing, and program design with a special emphasis on monitoring and evaluating just to name a few of the topics. As a business owner, the toughest challenge I see for any type of business is accessing capital. There is truth to the adage, that it takes money to make money. Even more so for an entity that is going to ameliorate a social injustice. However, just as important in my opinion and the reason my company exists is to ensure that the programs and services one provides are excellent and facilitate positive change for the betterment of individuals and the community.  

Over the next several months, I’ll be writing about different aspects of NPO operations. Highlighting what makes that aspect so important, what supports are available, and looking at that aspect from a different lens. As a member of BoardSource, I think this organization does a stellar job of providing nonprofit leaders and organizations through their leadership initiatives trends and critical data on issues facing organizations and the social sector as a whole that to an extent can make or break an organization. So much of life is about continuous Improvement people.  

This month, I want to focus on the role of Nonprofit Board Members and to a greater extent the concept of a Board of Directors that is responsible for governance.  BoardSource has conducted its signature study, Leading with Intent: BoardSource Index of Nonprofit Board Practices, biennially for more than 25 years. This is a fascinating report that challenges, exposes, and reminds us we definitely have a lot of room for improvement as it relates to our board members and their role in our organizations. The full report is 18 pages. Two of many findings include: 

• 67 percent of executives report that not enough time is spent by the board on building relationships within the Community that help support and inform the organization’s work.

• 49 percent of all chief executives said that they did not have the right board members to “establish trust with the communities they serve.”

Alrighty, wow. Those two items are significant and should send up red flags to see if these apply to your organization. If you are not part of BoardSource, I would strongly encourage you to check them out.  As I read through this report as well as other information they provide I recalled recently hearing of a document that I had no idea existed: Written by the late Dr. Debra Beck of Laramie, WY, here is her pot of gold:  

The Nonprofit Board Member's Bill of Rights

We the community leaders who serve on nonprofit boards, in order to govern toward a more perfect vision of the future and a fulfilling mission that advances that vision, require an environment conducive to fulfilling the responsibilities entrusted to us. To that end, we have the inalienable right to the following:

1) A clear understanding of our responsibilities, outlined before we join the board, and clarity about why we are being asked to serve. We have the right to participate in a thoughtful recruitment process, where a governance-focused job description is presented so we can make an informed decision about accepting the invitation to serve. We also have the right to know the specific skills, knowledge, connections, etc., that make us the right fit - at this time - for the board.

2) A rich, multi-stage, user-friendly orientation process that prepares us for active participation and, ultimately, leadership on the board. The information presented in the recruitment process is only the beginning. We deserve both a thorough initial orientation (including supporting materials) after we join the board and ongoing support in the initial months of our service.

3) Ongoing access to information, stories, etc., that provide the context and data to make the best decisions possible for the agency and the community. We deserve timely, ready access to that information, in formats that are accessible to us and conducive to effective decision-making.

4) Work that draws upon our strengths as community leaders. Our governance work is future-focused and impact-driven, grounded in questions of consequence. The work that we do does not waste our time. We come together to govern and lead, not wallow in management minutiae. We expect that that work will draw upon our individual strengths, expertise, and skill sets. We expect to use our individual connections to broaden the base of supporters for our mission in engaging and appropriate ways.

5) Meetings that are intellectually and creatively challenging.  We have the right to agendas built around questions about the future, that demand our active participation, and that gives us space to reflect and create. We deserve work environments that expect us to contribute regularly, as equal members of the governance team.

6) Experiences that bring us closer to the mission we are charged with advancing. The more vividly we understand the agency's work and the lives touched, the better we are able to communicate that impact to others and the stronger our own commitment becomes. We have the right to build our knowledge, not only in formal training events but in authentic experiential learning opportunities throughout our board service.

7) Expectations that are appropriately high. We have the right to set our own high bar, drawing from our significant collective expertise. We have the right to all of the forms of support required to fulfill those expectations.

8) A strong, effective partnership with our CEO. We recognize the complementary leadership responsibilities that each brings to the table, and we collaborate to ensure that both parties receive what we need to fulfill them. We neither receive our marching orders from our chief executive nor dictate from above.

9) Recognition that is personally meaningful. We deserve regular acknowledgment that what we bring to the board is valued. We deserve acknowledgment that different people prefer that recognition in different formats and that our individual preferences should be appropriately accommodated.

10) Respect for our contributions as community leaders. We have the right to be supported and valued, not treated as inconveniences. Your power and potential rest, in large part, on our power and potential. Respect us, support us, and we will lead in ways that bring you closer to your mission than you could ever achieve on your own.

There are many moving parts to what makes any company great; especially for a nonprofit is the Board of Directors.  I challenge you, to review those two data points from BoardSources listed above again and these 10 “Rights” which I think are totally reasonable. Leaders in our sector should invest the time needed to ensure these unsung heroes, aka our board members are chosen wisely and given every support needed so they can do an amazing job.