Episode 74: Nonprofit Governance - Board Culture

The board is responsible for governing the organization. If the members are disengaged, so goes the nonprofit. Culture is intentional. Learn how to create a culture of active, engaged board members who support the organization.

LINKS:
YouTube Nonprofit Program

Google for Nonprofits

NONPROFIT SPOTLIGHT: Special Olympics SoCal

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Podcast Transcript

Speaker 1 (00:04):

Welcome to On Air with Amber Wynn, where nonprofit leaders learned to fuse passion and commitment with proven business strategies to create long-term funding impact and sustainability. And now here's your host and resident, Philanthrepreneur, Amber Wynn.

Speaker 2 (00:24):

Amber Wynn, your girl on the scene. Hey, family. Good morning. So excited to be here. So excited to continue our series on nonprofit governance translation, the board of directors, specifically the nonprofit board of directors. If you've been paying attention to any of the previous episodes on nonprofit governance, you've realized that there is a distinct difference between a for-profit board and a nonprofit board. The most important being, if you are a nonprofit board member, you don't get paid. That's important because people say all the time, how much do I pay my board members? Or people say, well, how much am I going to get paid? There's so many differences between a for-profit board and a nonprofit board, and the reason why I bring up the topic of being paid is because I have founders saying to me all the time, well, how do I get people to sit on my board if I don't pay them? Listen, today's episode, we're going to cover something really important called board culture, and if you have board culture, it makes it a whole lot easier to recruit, retain, and really engage your board. So today's episode is about the nonprofit development, if you could, of board culture, but y'all know how we do it. We're going to pause for a minute. I'm going to come back and jump into board culture.

Speaker 3 (01:56):

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Speaker 2 (02:38):

Welcome back to On Air with Amber Wynn, Philanthrepreneur. Today we are continuing our series on nonprofit governance, the nonprofit board. Today's topic is board culture. I remember when I was executive director of Girls Inc. LA and just being like, why is there so much focus on the board? There were so many trainings and webinars and I'm like, hello? The executive director is the one doing all the work. Of course, I thought that I was the executive director, and of course I thought that because that was the truth, and when I talked to fellow executive directors, they were saying the same thing. What are we chopped liver? We're doing the day to day, and here's what I have to tell you. The reason why there's so much focus on the board is because the IRS developed the nonprofit with the intent of the board driving the organization.

Speaker 2 (03:35):

The executive director, for all intents and purposes, responsibility is to operationalize the vision of the board. So when you look at an org chart at the very top, its board of directors and then it's executive director. So the executive director reports up to the board. So that's why there are so much focus on board development, board training is because if they're doing their job, they're very, very engaged. They're driving the nonprofit and the executive director is operationalizing that vision, right? Taking care of the day-to-day, not carrying the brunt of the organization. So it's important that your board culture is healthy, that it is structured and engaged.

Speaker 2 (04:27):

The board culture is crucial to the success of the nonprofit, and I'm going to tell you this in this way, it's crucial. So if you have it, it's going to help you be successful, but if you don't, it's going to impact you as a leader. And if you are an executive director with the lame duck board of directors, you already know what I mean. So here's the thing, the board is responsible for governing the nonprofit, and if it's shady, then that's going to have a ripple effect. You're going to see it in your organization. What do I mean by this? Well, let's just talk about recruitment. If you say to a person, will you be on my board? And they're like, oh, I'd love to be on your board. There's no vetting, there's no making sure that they're qualified. You get this person on your board because you're like, oh, she's a nice person.

Speaker 2 (05:20):

Oh, she supports the mission. Then she's on the board and other people on the board, and they're just looking at you like, well, what am I supposed to do? So that didn't help you, right? The purpose of the board is to help drive the organization, and if the board is doing what they're supposed to do, then that's going to ease the burden off of you. Number two, when we talk about culture, are you scrambling to get your board to meet every month? Can you meet on this date? Can you meet on this date? And they're like, no, I'm too busy. I can't do that. That is board culture. If your board is not committed to even meeting dates, then that's going to impact your culture. Now you're drained because you're like, I can't even get them to meet for an hour. That is a part of your culture.

Speaker 2 (06:09):

I mean, things like dues, does your board pay dues? If they don't, then that is a part of your board culture. What else? Oh, do they evaluate the executive director that is their responsibility to hire, evaluate, support, and if necessary, terminate the executive director. So even if you're the founder and you're in the role of executive director, if your board isn't evaluating you, then they're not doing their job. People see evaluation as a bad thing. If you are doing your job and your board gives you an evaluation every year, guess what? You qualify for raises. They need to evaluate. You see what you're bringing to the organization and you can then say, okay, I've met all of my goals. They will set the goals in conjunction with yourself and you can say, I've met all of my goals. Now it's time for a raise. Compensate me for my contributions to this organization.

Speaker 2 (07:13):

But if you're showing up to the meetings and you're reporting out and you're telling them what's going on, how much money's in the bank, if you're doing all of that, then you're running the organization and that's now how it is designed by the IRS. Now, there are those of you who are founders and you believe that this is your baby and you believe that this is your company, and the reality is this is a public charity, so you're going to have to make the decision. Are you going to shift so that your organization can thrive under the leadership of a well vetted board who is committed to your mission, who understands and is willing to step up and do the work, or you're going to control your nonprofit and it's not going to grow and you're going to stay tired and you're going to stay burnt out because you're doing everything. Culture is built either intentionally or because nothing else happens, right?

Speaker 2 (08:12):

Think about a parent-child relationship. Children are well-behaved because you create boundaries. If you just let them run amuck, they're going to run amuck. It's the same with a nonprofit. You create a culture for your board and that will be the culture that is perpetuated in your organization, or you don't, and whatever pops up is what pops up. So it's important for you to do things like have a recruitment process so you don't just have anybody step on your board. It's important that you have a training process. You bring them on, you do an orientation, and then you have board development and training because you want to constantly get your board to this optimal level. You want to make sure that you have a give in a get that is a part of your culture. If you come onto this board, you come on knowing that you pay board dues and that you're responsible for participating in bringing in other resources, a table, sales, products and services.

Speaker 2 (09:17):

That is culture building. You want to, during the meetings, make sure that your board uses Robert's rules of order. People look at me like I'm crazy, but in the meeting, if they are structure like Robert's rules of order, then you don't have people screaming and over-talking people or dominating because Robert's rule says you're out of order. It's time for so-and-so to talk and time for. So that creates structure, which then is a part of the culture. You want to make sure that you have a strong president as the executive director, you are responsible for the day-to-day operations of the organization. Your president is responsible for driving not only the board, but ultimately the organization. If you have a weak president, you are going to have a weak board. It just is what it is. It's like having a weak coach. You're not going to have a strong team if you have a weak coach.

Speaker 2 (10:15):

So you need a strong president because that president is going to make sure that they're following up with the committees. Well, first of all, that there are committees and driving the culture of the board initially as a founder and executive director, yes, you are very, very enmeshed in the recruitment process, but it's the board that's responsible for growing the board, for doing outreach and recruiting other board members. So you want to create that culture. You want to start it, let your board know what type of board members you need you're looking for, but that is their responsibility to then grow the board. So I'm saying all of this to say the board culture is extremely important, and if you are the founder or you're the executive director and you're just doing everything, you're creating the board packets, you're running the meetings, you're doing the financials and your board's doing nothing.

Speaker 2 (11:10):

That is a culture that you are creating. And so my encouragement for you today is for you to find a nonprofit consultant who can come in and help you create culture on your board if they're worth their thought, they're going to look at who's on your board, if they're seasoned, if they're not, and they're going to say, okay, first thing we need to do is create a structure. Set your meetings well in advance so that your board knows a year in advance. My recommendation is to set a date the third Thursday of every month at seven o'clock so that there's no confusion. Don't do these moving dates. No, this is the date you guys to it. So whenever someone says the third, third, can't I have a standing board meeting? That's first. Then you always have board packet. Your secretary does the board meeting. So your consultant is going to help you create this structure on your board and then your board will get used to following it, right?

Speaker 2 (12:15):

The board dues, the president's going to do that. It is important once you have board culture, it is going to make your day-to-day so much easier. Part of that culture is fundraising, so you want to create it because if you don't, they will continue to not show up for you. It's easy for them, but they get to brag and say that they're on your board. So it starts with understanding what that is. If you as the founder or executive director do not understand what the responsibilities of a board is, first steps is for you to learn, right? So I have a board recruitment package. I'm going to drop the link in my bio for you to go check it out, but it's your responsibility to learn what your board is supposed to be doing. This board recruitment package is going to help you with a lot of things, shaping that, how to figure out a give and get. It's very detailed. It gives you the questions for the interviews. What you should be covering in your orientation is very comprehensive, so check it out and just get on the pathway of creating a strong, supportive board culture. Alright, so today we are winding down our series on board governance, nonprofit board culture is what we're talking about today. We're going to pause for another quick break, but then when we come back, we've got a question coming out of Denver with Ask Amber when we come back.

Speaker 4 (13:55):

Nonprofits are building a better future for everyone. Whether your organization focuses on bringing clean and safe drinking water to everyone on the planet or caring for people in your local community. Nonprofits like yours are making a difference every single day, but nonprofits also face a unique set of challenges, how to manage volunteers and operations on a limited budget, how to raise awareness about your organization and mission through storytelling and how to drive more engagement from donors to fundraise for your nonprofit. We believe that every nonprofit should be able to focus more energy on making an impact. Our mission at Google for Nonprofits is to equip nonprofits with the best of Google tools at no charge in more than 60 countries around the world. Your nonprofit collaborate and communicate more effectively with smart, secure business apps from Google Workspace with Gmail, your nonprofit employees and volunteers can send email from your nonprofit's.

Speaker 4 (15:03):

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Speaker 2 (16:28):

Welcome back. You're on air with Amber Wynn, Philanthrepreneur, and we're winding down our nonprofit series on nonprofit governance. Today's topic is board culture. Now's the time of the episode where you get to ask your pressing questions because my purpose for being here is to support the most amazing people on the universe, and that would be you, my nonprofit leaders. Today's Ask Amber question comes from Denver and it's from Connor. Hey Connor. Connor says, how long should a board meeting last? My board only meets one time a year, but complains about meeting for two hours. Okay, so Connor, the purpose of a board meeting is to handle the nonprofit organization's meeting.

Speaker 2 (17:23):

The purpose of a board meeting is to handle the nonprofit organization's business. It is the board's responsibility to manage the business. Here's the thing, if they're only meeting once a year to hours is nothing, two hours is usually how long people meet when they're meeting quarterly, when the board is meeting once a month, then it's an hour. So if you're meeting once a month, you should have things streamlined. So you've got your board packet. Hopefully you've sent out all of the agenda items before so they have an opportunity to review it. So by the time they get to the meeting, they already know what they're going to vote on. They've already read all of the supporting materials, and they're coming to the meeting prepared to handle the business. If your board is meeting once a year and they're complaining about two hours, you need a new board, thank them for their service, and you start to recruit new board members.

Speaker 2 (18:26):

I don't know where you are in your establishment, meaning are you one years old, five years old, right? This can go both ways. If you're brand new, maybe there's not a lot happening, so you don't need to meet that often, right? If you have robust programs and you have streams of revenue, it makes sense that you would need to meet more often or it could go the other way. You're brand new, so your board needs to meet more often because they need to discuss how are we going to generate revenue? What partnerships are we going to develop? What programs are we going to have? It just depends on where you are. I tend to encourage my clients to have their board meet monthly, if not a lot's going on. Then quarterly, when you're at the place where your board is meeting once a year, for me, it's an institutional board.

Speaker 2 (19:22):

You've got all your programs in place, you're ready to scale. You've got high powered people who basically, your organization is a well-oiled machine. So when they come in, they're reviewing, they're boating on things, and that's it. And there are very few of us at that place, right? Maybe three to 6% of nonprofits at that place. So I would encourage you to start recruiting new board members who understand what their roles are and to meet more frequently, at least quarterly. I'm going to recommend monthly, but at least quarterly. All right? So Connor, thank you so much for that question. If any of you out there have other questions, these are great questions. Everybody's curious, everybody wants to know, send your questions in my social media. You've got my website, Instagram, Facebook, Twitter, and heck, if you want to, you can be like Connor, and you can email me.

Speaker 2 (20:18):

My email address is amber@amberwynn.net. So hit me up with your questions. Now we're going to move on to my favorite time of the episode when I get to spotlight you, the most amazing people on the planet. You guys are in the trenches doing the work, and so I want to spotlight the work that you're doing today. Our episode is Special Olympics of Southern California. Special Olympics athletes are children and adults with intellectual disabilities who are like other athletes. They love to train, compete, and do their best whether they win or lose. All the programs offered in Southern California provide athletes with the chance to develop physical fitness, sports skills, social skills, and self-esteem. When they join the Special Olympics, the athlete can meet new friends and experience great rewards in achieving the best they can. Let's take a look at a clip that I thought was really cute that talked about why these athletes participate in the Special Olympics.

Speaker 5 (21:22):

Hi, my name is Riley. My name is Amy Aaron. My name is Samantha.

Speaker 6 (21:27):

I'm Tyler, and I play soccer for Special Olympics.

Speaker 5 (21:51):

Athletes love playing sports together. I get to show my skills, having great food and having fun, getting the park die on the dance floor. How are you? Welcome folks. Enjoy the fun of something. I love. The Special Olympics are like family to me.

Speaker 2 (22:20):

Thank you. Special Olympics, and if you're interested in supporting or if you know someone who'd like to participate in the Special Olympics, you can visit them at www.osc.org. Yay. All right, so let's keep it moving. Next we have my mindset minute, and it's when I spend a little time with you just talking to you about what's on my mind. Today's mindset Minute is actually encouraging people to serve on a board. We're talking these last episodes about nonprofit governance and being on the board.

Speaker 2 (23:05):

When you serve on the board, two things happen. One is you get to contribute. People want to start nonprofits all the time. We don't need another nonprofit. I say this all the time, we don't need another nonprofit. What we need are people who support the nonprofits that we already have. So if you're thinking, oh, I want to help somebody who special needs, join a board. If you want to help young girls who are a nontraditional joiner board, because we have enough nonprofits, what we don't have enough are resources. So lend your talent and your expertise to strengthen a board. It is one of the most amazing experiences you can have. The other thing that I would say is that it gives you experience. If you're thinking about starting a nonprofit, before you start one serve on a board, then you get to see what you should or should not do. I mean, you're going to have one of the two experiences. It's going to be an amazing one, and you can leverage that knowledge and skill as a board member to support your organization. Or if you have a sucky experience, then you know what you need to bring to your nonprofit board. Either way.

Speaker 2 (24:27):

But at the end of the day, if you serve on the board, you get to help improve a nonprofit and you get the experience. So I am encouraging those of you who are thinking about starting a nonprofit first start on a board. But before you do that, I want to encourage you to get trained. You don't step into any other leadership role and just be like, Hey, I'm here. You need to have some experience. If you're going to help to improve this nonprofit, bring something to it. And what you want to bring is your knowledge of what your role is. Don't expect the executive director or the founder to guide you. You want to come in and support them. That's what the board's supposed to do. There's plenty of free training out there on how to become an excellent board. There's actual programs for developing board members.

Speaker 2 (25:21):

Go through some training, watch some videos, go to my website. I have resources on board membership and things of that nature. But yeah, definitely support by joining. But do the nonprofit a favor by knowing what you're supposed to do before you get on it, people say, yeah, I'll join your board. Had no idea what they're supposed to do. Now you learn by trial and error. Bring something to the organization. Bring knowledge on what it is you're supposed to do. Alright, so that's it for today's episode. We are winding down the series on nonprofit governance. I hope you are really learning a lot because the board is important. People don't know it, but it's important, and I wanted you to have a deeper understanding of the role of the board because it's not just three people that you put on a piece of paper so that you can start your organization.

Speaker 2 (26:14):

Their purpose is to help guide, lead, make sure that finances are straight with the organization. Make sure that the organization is around for a long time because part of their responsibility is fundraising. We've got one more episode in the series, but thank you for joining me today. If you like the episode, be sure to like, subscribe, and share with your community. There are people out there who may need it, so be sure to share it within your network. So until next week, take care of yourself, like you take care of your community. See you next time.

Speaker 1 (26:52):

Thanks for listening. If you enjoyed this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.net/podcast for the links and resources mentioned in today's podcast. See you next time.

Amber Wynn

Nonprofit expert with over 27 years experience in program development, funding, and compliance

https://www.amberwynn.net
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Episode 75: Nonprofit Governance - How to Engage or Reinvigorate Your Board

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Episode 73: Nonprofit Governance - Why You Need Seasoned Board Members