Supporting Business Leaders to Be Good Board Members

By Anne Towne



Congratulations. You want to contribute to your community by serving on a board of directors. Maybe you want to help an organization whose mission is important to you: homelessness, mental health, transportation, family issues, cancer. Maybe you want to be involved because you care, and also because it may help your business.

Board service is a way to demonstrate the quality of your commitment and introduce you to new audiences (and potential customers). Maybe an organization, knowing your area of expertise, has recruited you. Being a board member with business experience offers unique perspectives from which organizations often can benefit.

If you want to serve, but aren't quite sure where you might best fit in, Howard County has a resource especially designed to answer that question. The Board Bank is for anyone interested in serving on a local nonprofit or governmental agency committee, board or commission. Visit http://volunteerhoward.org/resources/board-bank/ to register your interest and to learn about the opportunities available to community members.

The Board Bank, a partnership of the Association of Community Services (ACS) of Howard County, Leadership Howard County and the Volunteer Center Serving Howard County, will notify you of openings that fit your skills and interests. You can follow up with agencies directly or through the online system.

Accepting a position on a nonprofit board carries large responsibilities and requires an inquiring mind. Are you comfortable with governance issues such as hiring and evaluating the executive director/CEO? Do you understand that you will be responsible for monitoring the true financial condition of an organization? Are you interested in helping an organization strategically plan for its future?

The recent failure of a local nonprofit happened to some extent because its board members didn't fully understand what they needed to do. Being on a board means being willing - and comfortable - with asking for all the governing decisions needed.

Before joining a board, there are a few of the questions you should ask.



1. What are my duties as a board member?

Ask to see a job description and also a list of committees. Will your role be more on the governance side or include fundraising responsibilities? Do you see yourself serving on one of the committees? Is it a board requirement? Ask questions.



2. Am I committed to this organization?

Boards determine the mission of an organization. Even if you're joining because you think there may be some positive business benefits for you, you need to believe in what the organization does and the population it serves. Without that, neither you nor the organization will have a positive experience.



3. What are the internal controls?

As a board member, you'll be expected to ensure adequate human (paid and volunteer) and financial resources (earned income, government contracts and grants, and charitable contributions) are available. Boards are supposed to actively monitor an organization's financial and programmatic performance. Is the organization audited or its finances reviewed by an outside organization? You'll also be involved in developing its management policies.



4. Is there adequate insurance -

for the organization and the board?

Organizations should carry general liability insurance, workers' compensation insurance, and depending on their activities, property/auto insurance. Most importantly for you, they should also carry director and officers (D&O) insurance to protect the board.



5. Does the organization provide

opportunities for board development and education?

Boards' cultures change regularly depending on the life cycle of the nonprofit. Boards periodically may need to revisit their commitment, skills and mission.

The Internet is rich with board-oriented resources. Two examples are Boardsource.org and Blue Avocado Board CafŽ. Howard County is fortunate that the nonprofit community has developed a number of resources designed to provide boards with development and educational resources. Some of these provide formal training. Others offer members and board presidents more informal opportunities to explore common board questions and develop settings.

The ACS Board Development Institute, staffed by training professionals, helps nonprofits consider issues such as roles and responsibilities of board members (and staff), fundraising, marketing and communications. In 2010 the Board Development Institute will be expanding its offerings, including offering resources to nonprofit boards as they approach issues specific to their organization. Sessions can be held during retreats or during regular board meetings.

Another opportunity is designed exclusively for board presidents. The Gavel Group is a partnership of the Columbia Foundation and ACS. These monthly, informal meetings bring together board chairs and presidents from across the nonprofit sector, many of whom hold positions in business.

Sometimes the conversations are open: whatever issue those present want to discuss. Other times, the conversation focuses on specific topics such as contingency planning, working with consultants, how to determine how healthy your organization is, etc. In either case, the atmosphere is collegial, welcoming, and a useful resource both to get feedback and to bounce ideas off others with similar experiences.



Being on a board can be a fulfilling experience - offering members an opportunity to contribute to society and a cause while knowing that their efforts are appreciated. Just like any position, however, it has responsibilities that shouldn't be taken likely and requires skills that need periodic honing.

The rewards may not be financial, but they can be just as rewarding.



Anne Towne is executive director of the Association of Community Services of Howard County (www.acshoco.org). She can be reached at 410-796-7824.