Debunking Seven Misconceptions About Boards

I hear a lot of questions about how best to structure nonprofit boards, along with worries about how to do it the "right" way. Here are seven common misconceptions about boards - and why they are incorrect:

There is one and only one correct model for nonprofit governance.
Fact: One model does not fit all - what your organization needs to further its mission is dependent on your organizational culture, its size and budget, and how long you've been around. And the model you need may change over time, especially in regard to relative responsibilities of board versus staff.

There is one best (and legal) size for a board of directors.
Fact: Actually, California law requires only one director plus two officers (president, secretary, treasurer). This would make you legal but not very functional. Board size typically ranges from 5 to 15; research shows that small boards think they should be bigger, and large boards think they should be smaller. Your board should fit comfortably in your meeting room, be big enough to get work done effectively, and small enough that the group can work cooperatively.

All boards should have numerous standing committees that meet monthly.
Fact: In my experience, only two permanent committees are essential: a Finance Committee charged with ongoing financial oversight and a Governance Committee responsible for the health and functioning of the board. For everything else, consider using ad hoc groups. Your board members and volunteers will feel much more motivated signing up for projects with defined goals and deadlines, rather than for a standing committee with a vague purpose and no end in sight.

A good strategy is to have lots of wealthy people on your board.
Fact: A far better strategy is to have people on your board who are committed to your organization, understand their responsibilities as board members, readily volunteer their time and skills, and not only make substantial gifts (whether that be $50 or $10,000) but also ask their friends to join them in supporting your work.

Another good strategy is to stack your board with folks who have professional expertise you can get for free.
Fact: Often, professional people have valuable skills but very little time. Consider instead asking them to participate on an ad hoc committee, or to be available to provide support via email or phone when you need it.

If things are going well, there's no need for the board to do an Executive Director performance review.
Fact: An annual review can be one of the very best tools to keep your nonprofit in running order, as well as to promote a continuing positive relationship between board and staff. Plus your board has a legal obligation to provide prudent management, which includes oversight of the Executive Director's work. Every nonprofit should schedule an annual performance review on the board calendar, and stick to it.

All boards are dysfunctional.
Fact: Boards are made up of imperfect human beings; sometimes they work well and sometimes they don't. But for every dysfunctional board out there, you'll find many more that are working successfully to provide essential community services.

So stop worrying; instead, be thoughtful, flexible and creative. Assess your board periodically re what functions and what doesn't, and establish a governance structure that truly works for your organization.

Seven Tips for Effective Emails

Email is different from other forms of communication - more casual than letters, more personal than websites, more visual than phone calls, and more frequent and single-focused than all of the above. Here are some tips for using this medium wisely in order to maximize the impact of your emails:

1. Use a catchy subject line: Think of your subject line as a newspaper headline - it should entice folks to read more while clearly conveying your main point. It's both your first impression and your elevator pitch. And it can mean the difference between an opened email and one that gets trashed. Notice and learn from subject lines that work for you (and those that don't). Here are two that grabbed my attention: "Giving back has never looked so good" and "Take two minutes to change the world."
2. Go casual and person: Feel free to use everyday terms, casual sentences and sentence fragments, as well as slang words. Your email should feel relaxed and informal.
3. Keep it short (and simple): Show your readers you appreciate their time by sending emails that are concise and easy to answer. Use as few words as possible, introduce who you are, provide quick context, and tell them why you are contacting them. Be creative, be true to your unique organizational culture, but be brief.
4. Make it mobile-friendly: More and more people are accessing their email on mobile devices only, so test yours out to make sure they work. Short subject lines are absolutely essential, as mobile devices often will only read up to 30 characters (and note that subject lines of 28-39 characters have the highest click rate according to Mail Chimp).
5. Mind your fonts and formatting: Be sure to use common, readable fonts in appropriate sizes - Arial (12 point) and Verdana (10 point) are good choices. Make emails easy to read and quick to scan by using bullets, numbered lists, short paragraphs, and  strategic use of bold and italic. 
6. Use visuals: One great photo, video or infographic is worth a thousand words.
7. Drive readers to your website: You want your readers to one-click to your website to sign up for your email list, donate, and learn more about your good work. So make sure to include the URL for your website and/or blog, and make sure the links are functional.

Email is such a quick and seemingly easy method of communication; we all have a human tendency to toss them off without much thought. But if you want the folks on your email list to actually read what you've written, you need to take the time to compose subject lines and emails that capture their attention and motivate them to take action.

Reflections on the IRS "Scandal"

Turns out the big IRS "scandal" was another one of those sound-bites that dominated the news despite the fact the media (along with our elected representatives) had failed to do their homework.

Here's a list of keywords the IRS actually used to identify applicants seeking tax-exempt status that might require extra scrutiny: Tea Party, patriots, progressive, occupy, medical marijuana, foreclosure assistance, Affordable Care Act, disputed territories in the Middle Easts, Israel, and open-source software. Notice how these words span the political spectrum from right - to left.

It is in fact the job of the IRS to determine whether an organization is truly eligible for tax-exempt status. According to IRS Code section 501(c)(4), "an organization must not be organized for profit and must be operated exclusively to promote social welfare. To be operated exclusively to promote social welfare, an organization must operate primarily to further the common good and general welfare of the people of the community."

Direct or indirect intervention or participation in political campaigns supporting or opposing a candidate for public office is explicitly defined as not promoting social welfare. A 501(c)(3) nonprofit is completely prohibited from political activity of this kind; a 501(c)(4) is allowed to do so provided this is not the organization's primary activity. Here's the rub: up until a few days ago, nothing in the IRS code has defined the word "primary."

One of the best results of this whole brouhaha is that the IRS has now announced a clearer and more streamlined application review process. Organizations can be awarded tax-exempt status within two weeks if they certify that political campaign intervention will involve 40% or less of their spending and time. I must admit I'm skeptical the IRS will actually be able to manage the proposed timeline. And I'm still waiting to see how the IRS plans to monitor political activity over time. But this is definitely a step in the right direction.

Here's my favorite quote from all the articles I have read about the controversy, from Los Angeles Times columnist Michael Hiltzik: "The biggest laugh line uttered in this affair is that the IRS is somehow 'harassing' these public-spirited organizations by asking them to justify their status. Here's a good rule of thumb: You don't want to get harassed by the IRS? Then don't claim a tax exemption you may not deserve."

Every one of these organizations - and the people involved with them - has a First Amendment right to freely support or oppose any political candidate of their choice. They just don't have a concomitant constitutional right to not pay taxes while doing so.