You’ve been asked by a nonprofit organization to join its Board of Directors. With that comes a tremendous level of responsibility that goes beyond just showing up for meetings and passing resolutions. It requires an understanding of what being a Board member entails: your duties, the organization’s expectations, your legal exposure, the role you’ll be expected to play, the time and money commitment, etc. It also requires some due diligence and soul searching on your part.
It is critical to determine if you are the right person for the job. You need to look in the mirror and ask yourself some difficult questions. Remember, the organization has certain expectations of you as a director and you need to recognize exactly what these expectations are in order to conclude whether or not you’re prepared to make the sacrifice. Outlined below are some important questions and key points to consider:
Are you passionate about the organization and the impact it has on society?
Having passion for the organization and its cause is perhaps the most vital trait that someone can bring to an organization. If you don’t have passion, you may find yourself reluctant to make the sacrifices or put in the time, energy, and effort to meet the organization’s expectations. We’re all busy. Many of us have work or family obligations that hinder our capacity to offer time and/or energy to a nonprofit — even one that we have a personal passion for. You need to find out what the time requirements are, and then decide whether you can and want to realistically meet those expectations.
Can you effectively contribute to the Board?
Even if you have determined that you have a passion for the cause, that still may not be sufficient. Do you have knowledge, skills, experience, contacts, or other qualities that will assist the Board in performing its functions? Perhaps those who extended the invitation can offer some insight on this. A high-functioning Board will have thought this question through in advance and be prepared to offer a detailed answer. After determining what they have in mind, contemplate whether you see your ability to contribute the same way they do.
What are the financial requirements of being a Board member?
Many Boards have financial expectations for each member. A “give and/or get” Board policy may exist, which requires each Board member to contribute and/or obtain gifts of a specified dollar amount. The Board may also expect you to absorb the costs of being a director, such as the price of meals, travel, and gas. Whatever form these financial expectations take, you need to be prepared to meet them before accepting a Board position.
Understanding the time commitment:
It’s crucial to understand the time commitment involved. Know when and where Board meetings are held, how often they occur, and whether you’re expected to attend events or participate in volunteer activities. Clarify if you are required to sit on committees and what those commitments entail.
Understanding how the Board functions:
Be aware of the Board’s role in fundraising. Are you comfortable with fundraising efforts, whether through personal networks, events, or other means? Understanding this aspect is essential as fundraising often plays a critical role in the organization’s sustainability and growth.
Putting the interests of the organization first:
Can you put the interests of the organization ahead of your own? This is part of your duty of loyalty to the organization. Regardless of your personal feelings and goals, the interests of the organization must come first.
Assessing the organization:
If you’ve determined that you’re suited for the responsibilities, focus on whether the organization is right for you. Take a close look at the other leaders of the organization. Do you know them? Are they people you respect or can respect? You need to be comfortable with the people you are sharing responsibility with. Additionally, review the financial condition of the organization and understand its vision and strategic plan. Is the Board actively engaged in pursuing the organization’s goals?
Legal and protective measures:
Finally, inquire about what protections the organization offers its directors. This includes understanding indemnification policies and the availability of Directors and Officers (D&O) insurance. Ensure you are comfortable with the level of protection provided, as this is crucial given the potential legal responsibilities of Board membership.
Deciding to join a Board is not a simple matter. There are quite a few questions and points to consider. Who would have thought when you got the invitation to join a local nonprofit Board that the process of deciding whether to say yes would be so lengthy and strenuous? Please don’t be discouraged. Most good nonprofits will pass all of the tests above with flying colors.
We commend you on your interest to give back to the community and express our hope that your service on a nonprofit Board is both satisfying and rewarding. Whatever the process is to get you to the point of saying “yes,” once you do, the personal sacrifices and contributions you make will no doubt be much-appreciated and gratifying.
