Nonprofit Board Talk

From the article - “In our recent Philanthropy Journal poll about recruiting board members, respondents indicated that they frequently face challenges in recruiting competent volunteers to their board. The economic downturn the country has been dealing with for more than five years has made it even more challenging for more than a third of the respondents to recruit competent board members. At a time when nonprofits need skilled and dedicated volunteers to help make the strategic decisions necessary to navigate difficult financial times such leaders appear to our survey respondents to be in short supply.” read more

Does Your Nonprofit Retool?

"Only those who constantly retool themselves stand a chance of staying employed in the years ahead." - Tom Peters

     I love this quote from Tom Peters.  It is true for individuals but I think it is also true for organizations as well.  Is your nonprofit retooling?  In a fast changing world, it is important to “retool" if you want to survive and be relevant in your mission.

     Everyone talks about using social media.  A great “retool" for any nonprofit.  Is your nonprofit board using eGovernance tools to help with board and committee meetings?  Have you looked at cloud computing to lower techology costs, expand capacity or improve productivity?  What about crowd funding as a new source for donations and program funding?  Are you using meetups to help with outreach and volunteer recruiting?  Your nonprofit must improve, adapt and retool … or lose ground to other nonprofits that do.

Thanks for reading the Nonprofit Board Talk Blog!

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Brent Jackson

Nonprofit Board Discussion – What is Cloud Computing?

It’s difficult to have a true discussion on cloud computing if most of the people in the room don’t know what it is.  It’s a buzz phase so everyone has heard of it but how many board members really know what it means?  I’m a person with an IT background so I’m usually asked to explain what cloud computing is.  I can see faces change as I explain it and understanding hits.

Most nonprofit boards will face this question at some point.  Here’s a short version of the explanation I give to this question.  I hope it helps when your board has the discussion.  The explanation is simple.  The best way to understand cloud computing is to compare it to the other forms of computing available to most nonprofits:

“Local” Computing – You are computing locally if all your programs (or software) and data is stored on your PC’s (or laptop’s) hard drive.  If you have a flash drive or external hard drive, you are still computing “locally”.

Server Computing (or Client/Server Computing) – Your nonprofit owns or leases a server.  When you connect to the office network, you can open files stored on that server.  In this case, the programs (Microsoft Word, Microsoft Excel, etc.) are installed on your PC but you store the files (or data) on the server.  This is very common with databases.

Enterprise Computing – In this case, both the software and the data is stored on your office server.  All the user has to do is type a web address.  You don’t have to make sure the software in installed first.  (There are exceptions to this but that’s another blog post.)

The key here is your nonprofit owns or leases the server.  The server is in your office or downstairs in the basement or at the data center.  You can see it, hug it, or take a picture of it.  You have a staff person or contractor that has to maintain it.  From time-to-time, you have to fix it or replace it.  The good part is, you have a server that gives you extended computing power.  The bad part is, you have a costly server that requires specialized skills to maintain.

Cloud Computing (or Cloud Services) – Do you want the extended computing power without the costly server?  Cloud computing can do it!  There are companies with data centers full of servers.  You can “rent” or “share” space on those servers.  You can get access to the software on those servers.  Just sign up as a customer and type in a web address.  Google Docs, Microsoft 360, Yahoo Mail, Evernote, Box.net and SalesForce.com are all cloud services.  When you log into your account to get your data, you have no idea where that server is located.  That’s cloud computing!

This is a VERY simple explanation of cloud computing.  Experts spend hours talking about the types of service, levels of service, software options and vendors available in the cloud world?  This explanation is only to begin the discussion.  You need advice and support from experts as you move into the cloud.  Good luck on the journey!

Thanks for reading the Nonprofit Board Talk Blog!  Follow on Twitter @NPBoardTalk

Brent Jackson

The Costs of Board Service: Time, Money and Energy

          Are you thinking about starting a new project, joining a new club or learning a new hobby?  The first question you should ask yourself is how much time, money, and energy will this cost?  The same question applies to serving on a nonprofit board.  Make sure you have a good idea of the costs of serving before you say yes.

          How much time?  How often does the board meet (monthly, bi-monthly, quarterly, etc.) and how long are the meetings?  Are the meetings during the workday, after hours or on the weekend?  Will you have to serve on one or more committees?  If so, how often do the committees meet?  How much time does the average board member spend reviewing reports or documents between meetings?  Do the nonprofit have non-board activities you are expected to help with or attend?  You want to make sure there is a good balance between the board’s time needs and your availability.

          How much money?  Will you be required to make an annual financial donation?  If so, is there a required minimum donation?  Can you afford it?  Will you have to buy tickets to anything (an annual gala, conferences, concerts, shows or games, etc.)? Are there other expenses?  Do you have to contribute to a soup kitchen, food drive, shelter supply closet, or team uniforms?

          I served on a board once that served a lite meal at each board meeting.  The committees took turns providing the food.  I shared in the cost of the food if it was my committee’s turn.  Bottom line - try to get a realistic idea of the costs of serving on the board you are thinking of joining.  I have seen good people forced to resign from a board due to the financial burden.

          How much energy?  This is the hardest one of all!  Most people don’t think about energy cost.  Have you heard the saying, “A meeting of the minds but the minds didn’t show.”  Well each of us has a finite amount of mental energy to spend each day.  Board service requires a lot of mental energy!  It’s important to show up to meetings with a clear, well-rested mind.  A nonprofit board needs people to do more than show up and keep the chair warm.  It’s ok to say no to board service if you have a crazy or stressful life.  You can always serve later when things are under control.

          Why did I write this?  I love nonprofit board service!  I would recommend it to anyone looking to learn, grow, serve or make a difference.  However, I have seen people join boards and it not work out.  In every case, the relationship failed due to a misunderstanding of time, money or energy commitments.  I don’t want it to happen to you.

Thanks for reading Nonprofit Board Talk!  Follow on Twitter @NPBoardTalk

Brent Jackson

Annual Checklist for #Nonprofit Board Members

#Nonprofits #BoardService

1 – Make your annual donation!  You should financially support your nonprofit even if it does not require a donation from its board members.

2 – Update your profile (or directory) information.  Has your phone number or address changed?  Did you change jobs?  Most nonprofit boards maintain a profile sheet or directory for board members.  Make sure the information is correct.

3 – Check the status of your term.  If your board limits the number of years (or terms) a member can serve, check if you’re near the end of your term.  If so, you have some planning to do!  Prepare a package of information that needs to be turned over to the board when you step down.  Have a plan to transition any projects or documents you will not be able to finish before the term is ends.  Think about your role with the nonprofit after you step down.  Maybe you can serve on an advisory group or continue as a volunteer.

4 – Recommend a new board member.  All boards need a constant flow of new members.  This is a great time to chat with professional friends and colleagues about nonprofit board service.  If one is interested, refer them to the committee responsible for recruitment.  All board members should help with this task.  It should not fall on the recruiting committee alone.  (Note – Keep the boards recruiting targets for skills and / or professions in mind as you talk to people.)

5 – Review your nonprofit’s IRS Form 990 or 990-EZ!  All nonprofits must file a tax return with the IRS.  This form is available to the public.  Look at it please!  Make sure it was filed and that it is correct.  You don’t want to be a board member of a nonprofit that loses its tax exempt status.

6 – Review your nonprofit’s state tax return.  Does your state require a tax return from nonprofits?  If so, ask to see that return as well.

7 – Review your nonprofit’s year-end financial statements.  A board can’t ensure the financial health of a nonprofit without reviewing financial statements.  Make sure you have seen them and understand what is on them.

8 – Review this year’s budget.

9 - Review the nonprofit’s policy manual.  This is part of governance.  There are policies listed on the IRS Form 990.  Your state or local government may require nonprofits to have certain policies.  Any lawyer or HR professional will have a list of polices highly recommended for financial management, risk management and operations.  All policies should be easily available for you to review.  Make sure the nonprofit has all the policies it is required to have.

Tell me if I missed something!  I’m happy to update the list.

Thanks for reading the Nonprofit Board Talk Blog!

From the post - "Nonprofit board service is particularly compelling for business people and professionals seeking to develop as leaders."

From the post - “Mario Morino, Venture Philanthropy Partners Chairman, recommends that nonprofit boards answer six critical questions to insure that their nonprofit is prepared for changes that might lie ahead.”

Searching for a Nonprofit Board – Try BoardNetUSA

         I listed ideas to find a nonprofit board for board service in past blog posts.  Remember you must have patience during the process (Searching for a NonProfit Board: Patience is a Virtue).  I have a post on the number of nonprofit boards and the process to join most boards (Joining a Nonprofit Board – The Intro).  The simplest way is to find a local nonprofit you are interested in and just ask to serve on the board (Joining a Nonprofit Board – The Search and the Ask).  Lastly, I gave three places you can check for a list of nonprofits in your area (The Search and the Ask Follow-up).  This is all you need to actively search for your first (or next) nonprofit board.

          What if you’re a busy professional.  Or, you’re new to the area and don’t know the local nonprofits.  There is a passive way to search for a nonprofit board to serve on … let the nonprofit board find youBoardNetUSA is a website that matches nonprofit boards to people looking to serve.  And, it’s free to use!

          All you have to do is set up a profile on the service.  List your skills, interests and background information in your profile.  Nonprofit boards post requests for new board members.  The nonprofit will list any skills or background it’s needs in a board member.  If you match, BoardNetUSA will send you an email.  Easy!

          Be prepared!  It may take a month or two to get a match.  Also, once a match is made, it could end up a false start.  The process is very close to interviewing for a job.  At anytime during the process, either party could decide “this will not work out after all”.  Don’t take it personally and don’t give up!

          I’ve served on 7 nonprofit boards.  I found 5 of the 7 boards using the service.  Try it and tell me if it works for you.

Thanks for reading!

Brent

Meeting Availability Blues – Try MeetingWizard.com

If you get a good resource, pass it on!  With this in mind, use MeetingWizard.com to avoid meeting availability blues!

We use Microsoft Outlook on the job.  It’s easy to schedule a meeting with Microsoft Outlook.  I can create a meeting invite and add all the people I want to invite to the meeting.  I can see each person’s availability to find the best date and time to hold the meeting.  Easy!

This is not the case with most board service.  Most of the people serving on the board work for different companies or organisations.  This means different email systems.  I can’t check for meeting availability in advance.  As a result, to request an unplanned board or committee meeting, I have to start a chain of emails to check everyones availability.

Here’s an online tool that can help with this process.  Go to www.meetingwizard.com.  Create an account and let the service help you plan a meeting without all the emails.  You can create a list of possible dates and times for the meeting.  Then put in the email addresses of the people you want to invite.  Meeting Wizard will send each people an email with a link for the meeting information.  Each meeting attendee simply clicks the link, check the dates and times he/she can attend and Meeting Wizard tracks the results.

Once you confirm the meeting in Meeting Wizard, the service will send an email to everyone to let them know.  One more problem solved!

Thanks for reading!

Brent

The Search and the Ask Follow-up

I got a question to my post, “Joining a Nonprofit Board – The Search and the Ask.” It’s a good question:

“How do I find a list of the non-profits in my area?”

I’ve lived in my neighborhood over 4 years. I couldn’t give you a list of non-profits in my area. Not off the top of my head anyway. But, I do have a few ideas to get a list of nonprofits you can contact for board service:

  1. The United Way – Get a list of United Way supported charities from the United Way’s website. Search by your zip code (USA) to get your local United Way site and then search for a list of local nonprofits.
  2. GuideStar – GuideStar is an online database. It contains information on all nonprofits in the United States. This information comes from IRS tax forms and other sources. You can search the database with your city or zip code. Once you find a nonprofit you like, get the address & contact information. There are fees to get detail information from the database.
  3. Your local volunteer center – Most counties and cities have a volunteer center or nonprofit association. Most will give you a list of nonprofits in your area that are members. Some have a board service matching program. Be prepared to pay a fee and take a training class before you are matched with a nonprofit board.

I hope this will get you started. Good luck on your search!

Thanks for reading!

Brent

Joining a Nonprofit Board – The Search and the Ask

In an earlier post called “Joining a Nonprofit Board – The Intro,” I reported that at the beginning of 2010, there were 87,151 nonprofits. This number came from the NCCS ( National Center for Charitable Statistics). From this number, I concluded that an estimated 435,755 to 1,307,265 people are needed to serve on those boards. In other words, a lot of nonprofits need a lot of board members.

How do you find a nonprofit board to serve on? There are many methods to find a board. The first and possibly, the easiest … just ask.

If you live in a city or large suburb, there are small nonprofits within easy reach. By law, each one must have a Board of Directors. Even a small nonprofit (if it is well managed), will always be on the lookout for new board members.

What are you interested in? What issues or causes are you passionate about? Would you support animals, housing, or research to cure an illness? Do you want to help those in need? Every state has to deal with domestic violence, sexual assault, child abuse, homelessness, and crime prevention. Find a local nonprofit that deals with a subject you want to work on and ask to serve.

Contact someone serving in a leadership role for the nonprofit. Ask if the board is looking for new members. Remember to have patience. If that nonprofit is not looking, ask the next one on your list. Believe me; many nonprofits will be happy you asked! Good luck with your search.

Thanks for reading!

Brent

From the post -“

Most nonprofit boards are including pro bono service and in-kind donations in their resource development. Are you?

No one knows better than you that nonprofits need strong boards to harness the resources they need to thrive. Until now, chief executives and board members have lacked direct guidance on how to work together to access resources beyond cash — such as pro bono services and in-kind donations. Business professionals have skills and networks that can provide invaluable resources to nonprofits and our research shows they are eager to join nonprofit boards.”

This post speaks for itself. It’s a good article on nonprofit board burnout. The article is called “5 Symptoms of Nonprofit Board Burnout” and it can be found on the X Factor Consulting Blog. It answers the questions:

  1. What is board burnout?
  2. What are the signs?
  3. How do you treat or prevent it?

There is also a recorded webinar dealing with problem boards and offering ideas to fix the problems. The webinar is called Board CPR: Revitalizing Troubled Boards for Service. You have to supply your name and email to see the webinar but it’s worth it. [read more]

“Healthcare professionals describe burnout as a “state of emotional, mental, and physical exhaustion caused by excessive and prolonged stress. It occurs when you feel overwhelmed and unable to meet constant demands. As the stress continues, you begin to lose the interest or motivation that led you to take on a certain role in the first place” (www.helpguide.org). When the role that someone loses interest in is serving as a board member, then what we’re discussing qualifies as board burnout.” [read more]

Thanks for reading!

Brent

From the blog - “I have a daily (7 days a week) subscription to Google Alerts on “Nonprofit Management” and “Nonprofit Governance.” Every week, three or four nonprofit case stories surface, in these listings, related to inadequate oversight by nonprofit boards of directors. Many of the cases result six or seven figure dollar losses to the nonprofits. Following is my personal list of what reasonable board oversight means to attempt to help nonprofit boards of directors to avoid such losses. “