"Tis the Season to Recruit

Your Board of Directors is the heart and soul of your nonprofit organization - carrying the responsibility for prudent fiscal management, overseeing programs that fulfill your mission, and defining organizational focus. Yet many nonprofit boards operate with woefully small numbers, or with members ill-suited to the required tasks.

Is your board at full capacity? Does everyone show up to meetings? Do you have the expertise - and the energy - you need from the group? Here are some tools for strengthening your board with board recruitment that is constructive and organization-appropriate:

• Establish a process: Review and update your board job description annually (or be sure to create one if it doesn't exist). Create a job application form that asks pertinent questions for prospective board members. Be sure to develop an annual timetable for board recruitment - and stick to it.
  

• Have a full board at all times: Providing adequate resources (staff, volunteers, funding, in-kind donations, energy) is first and foremost a board responsibility. A small board translates into a much smaller circle of contacts, lacks the critical mass for sustaining enthusiasm, and leads to board burnout.
  

• Make your search ongoing: Be on the lookout for new members year-round. Consider dedicated volunteers and donors, involved clients, and important community contacts. Keep a list of possibilities. And advertise: put a regular notice in your newsletters and emails saying you are looking for board members who are passionate about your work.

• Do an honest assessment of your current board: Does the membership reflect the demographics of your community and clients? What kind of expertise do you lack? Use your assessment to identify priorities for new members.

• Be truthful about the job: Tell your prospective board members that the job involves more than just showing up at an occasional meeting. Far too many nonprofits deliberately underplay the level of commitment involved.

• Recruit outside the box: Traditionally, boards have looked for lawyers, financial people, donors, or prominent community members - yet these folks are often better as pro bono volunteers on a committee, advisory council, or specific project. Look instead for a mix of generations, geography, and community connections. Find folks who fit your unique organizational culture. Above all, you want someone who will be a team player, is passionate about the work of your agency, and will actually show up for meetings.

These days, nonprofits find themselves so strapped for funding that they rush to recruit folks who are wealthy - yet everyone can learn to fundraise, but not everyone has the temperament or time to do the important work required of a board member. And nonprofits are often so desperate for board members that they'll take anyone with a pulse - yet it's essential to put as much time and planning into choosing a board member as it is with an employee.

Get the board that you need and deserve - with a board recruitment process that is creative, organized, thoughtful, and ongoing.

Overcoming the Fear of Fundraising

It is the legal responsibility of every nonprofit Board of Directors to ensure that their organization has the resources to fulfill its mission - and that means fundraising. Yet those who recruit new members often fail to mention this for fear of scaring people away. And board members frequently become paralyzed when asked to do their part to raise money in the one manner that is the most efficient and cost-effective: asking donors directly for contributions.

Here are the most common fears people have - and some suggestions about how to address them:

• Fear of rejection: First of all, you're going to be turned down;on average 50% of good prospects will give - but note that this means on average 50% do contribute! Your job is to know that being turned down has nothing to do with you personally. When people choose not to give, they do so for many reasons - but it does not mean that you are a bad person or that they hate you.

• Fear of failure: It's important to change your definition of success in fundraising. Success is how many times you ask. And if you make all your asks, you get an A+.

• Fear of looking stupid: No donor will expect you to know everything. And when someone asks you a question you can't answer, say "That's a great question - thanks for asking! Let me talk with the Executive Director and get back to you." You can also approach the donor with a knowledgeable partner (staff or board).

• Fear of alienating friends: Have you ever lost or damaged a friendship because of a charitable request? If you make your asks with integrity (and without blindsiding your friends unexpectedly), they may or may not give, but they will not disinherit you. Give them an out: "If you choose not to participate, that's OK: we'll still be friends. But I sure hope you can help."

Fundraising is not about your feelings - it's about the donor. Just as you feel good when you make a charitable donation to a cause you care about, you are giving the donor an opportunity to feel good. It's not about begging or hounding people - rather it is about facilitating a fair exchange where donors give one thing of value (their money) in exchange for another thing of value (the good work of your organization). And it's not just about money - it's about building sustained relationships.

Your job is to reach out with integrity - speak with passion about your agency's mission, make a clear case, listen carefully, and invite the donor to become involved. There are strategies and techniques but they are far less important than the one quality you need to be successful: your passion for the mission.

So kick yourself and your fears out of the way and let the cause talk. Your job - and it is indeed an honorable one - is to get out there and raise the money your agency needs to do its good work.

Dollars and Sense

One of the most fundamental legal responsibilities of all board members is prudent fiscal management. This has become even more important due to a climate of increased scrutiny precipitated by numerous public scandals revolving around fiscal mismanagement by nonprofit Executive Directors, hand in hand with lack of board oversight. Yet more often than not, nonprofit boards fail to pay attention to their organizational dollars.

So: here are some guidelines about what you need to know:

• Do your board members receive, read, and understand the organization's fiscal reports? Boards should be looking at financial statements on a quarterly basis at minimum. If you find these statements confusing, know that you are not alone - accounting is a foreign language to most people. Your job is to make sure the information is presented such that everyone fully understands the numbers and their implications.

• Are your program costs aligned with your stated mission? It is the board's responsibility to ensure that your money is being spent on programs that directly further your mission.

• Does your nonprofit have cash-management policies in place? Every organization should have basic financial controls in place to maintain the integrity of its bookkeeping process. The bottom line here is to have checks and balances, with more than one person handling fiscal responsibilities, plus secure storage of cash/checks.

• Does your agency have a diversity of funding sources? Reliance on one single source of funds, whether an individual donor or a foundation, is dangerous. Ideally, you want a healthy mix of earned income, donor contributions, and grants.
  

• Does your agency have a program reserve? A designated reserve fund that covers 3-6 months of operating expenses in case of a dire emergency is an essential.

• Are you required to do audits? If your budget is $2 million or more, you are required by the IRS to have annual audits. If not, whether you do an audit is dependent on many factors including grant requirements, significant organizational change, and the size of your nonprofit.
  

• Does the board maintain proper oversight of wages and benefits? Be sure your board reviews all employee compensation and benefits annually in conjunction with performance reviews. The Northern California Wage and Benefit Survey, available at http:www.nonprofitcomp.com/index.html, is a great resource for comparative data. Note that all nonprofits are now required by the IRS to have a written policy on Executive Director compensation.
  

• Do you have the appropriate kind and amount of insurance? Every nonprofit should review insurance policies on a regular basis to ascertain whether the organization is properly covered.

The ongoing economic downturn has placed added stress on all nonprofits, and along with it, the need to truly understand your organization's financial situation as you make difficult decisions in regard to program and operating expenses. Don't be afraid to ask questions about your organization's budget and fiscal policies; in fact, it is your responsibility to do so.