“Should I join a non-profit board?” This is a question I hear a lot from professionals who are considering becoming a charity board member as a means of building up their resumes' or seeking out new networking opportunities. Others want to join a charity board out of genuine interest in a particular cause and a desire to contribute their time and expertise, or financially, from a position of authority that allows them some control over the direction of the non-profit’s programs.
As you advance in your career into executive positions, chances are good that you will need to consider whether or not rounding out your professional profile with experience on a charity board is right for you. It is important to understand that not all non-profits are the same, and neither are the expectations for those who serve on their boards. Joining a charity’s board of directors could be the most rewarding experience of your life, or a total nightmare. Here are some things you should consider before you take the leap:
Expectations:
The key to every successful relationship is managing expectations. Some non-profits expect board members to make significant financial contributions to the organization each year. Others don’t expect regular donations from you, but expect you to be available for monthly, in-person board meetings and to contribute other significant time to the organization’s governance. A charity may be recruiting you for your expertise, your perceived fundraising connections, or because you have an impressive professional background that will enhance the charity’s reputation. None of these expectations are intrinsically good or bad. It is just about finding the right fit. Make sure that what the non-profit expects from you is something you are willing and able to give. Conversely, make sure your expectations are realistic. Non-profit board positions are typically unpaid and may or may not provide good professional networking opportunities depending on the size of the charity’s board and its level of involvement in ongoing operations.
Conflicts of Interest:
Other than in extremely rare instances charity board positions are unpaid. This likely means that you work somewhere else and that your employer or industry is concerned about maintaining neutrality on certain contentious political and social issues. Or, your employer may lean far in a political direction that is contrary to your personal views. When you join a non-profit board you have a fiduciary duty to act in the non-profit’s best interest. Before making this commitment, make sure that your obligations to your employer are not in direct conflict with your duties as a non-profit board member. This is of particular importance if you are in an executive or other management position that subjects you to more public scrutiny for your activities outside of the office.
Risks & Responsibilities:
Many professionals lack a complete understanding of what they are obligating to by joining a non-profit board. Some are under the mistaken belief that because the position is unpaid they are free to participate only when it is convenient, and that they have no legal obligations or risk exposure if something goes awry. Not true. As a non-profit board member you have a fiduciary duty to act in the non-profit’s best interest above your own interests, and above the interests of the friend who may have recruited you for the position. You have a responsibility to attend board meetings, to stay apprised of the non-profit’s financial situation and governance policies, to oversee the compensation of its officers, and to approve its budget. If the charity is sued you may be asked to testify or provide information for discovery in a legal dispute, and in rare instances could be held personally liable if you are found to have been negligent in your duties. (Don’t let me scare you. Board members are not often held personally liable when a charity is sued unless they colluded, mismanaged funds, or broke the law. But it is still important to know potential risks and take them seriously). To hedge your risks, ask the charity if it has an Officers & Directors insurance policy that will protect you in the event of a lawsuit. Review it to make sure it has teeth and that your specific position is covered.
Ask the non-profit the right questions:
Make sure you are not walking into a giant mess. This requires asking many of the same questions you might ask of a potential employer or business partner. For example, find out what the average turnover is of the non-profit’s board members and officers. Has the organization gone through 5 presidents in the last 3 years? Why? Is the non-profit currently involved in any legal disputes? Is it delinquent on any taxes or external reporting requirements to government agencies? Is it fiscally solvent? Is it a single legal entity, or a legally related affiliate of a much larger organization? How long has it been operating? How many people are on the board and what would your role be? Is your board position voting or non-voting (honorary)? In addition to quizzing the non-profit, do some research on your own. Does the non-profit have a good reputation? You may be able to obtain a copy of the non-profit’s tax filings, audits, bylaws, articles of incorporation, and other information by visiting the web site of your state’s non-profit regulatory agency.
Ask yourself the right questions:
I will give you the same advice I give to donors who wonder if they should donate money to a charity that solicited them – never do something simply as a reaction to being asked. Don’t join a non-profit board just because the non-profit asked you to. Think about whether or not you have enough free time and interest in the cause to motivate you to contribute productively in your position. Think carefully about the type and size of non-profit board you will feel most comfortable serving on. Smaller non-profits often have smaller boards and fewer resources, which may mean you have more responsibilities than you might at a large non-profit where you are but one of 30 board members. Think about your motivation for joining a non-profit board. Will you be ok with serving on a board where a lot is expected of you? Will you be content if very little is asked of you and opportunities to participate in programmatic decision-making are extremely limited? Charities are always looking for volunteers so there are ways to get involved in a cause without serving on a non-profit board. Make sure a board position is right for you before committing to one.
Do it
In your race to the C-suite try to remember that younger and more idealistic version of yourself and carve out some time in your busy life to make that person proud by volunteering on a charity board. As a professional person you are in a position to set a good example of civic duty for others and do your small part to help shape the world into the kind of place you are proud to hand down to future generations. You may possess critical financial, marketing, information technology, or business strategy expertise from which a non-profit could greatly benefit. In a competitive corporate environment it is easy to become cynical and can be difficult to maintain a balanced life. Rather than striving for the lowest common denominator among your competitive peers, consider giving back a little by serving on a non-profit board. If you are committed and take the time to find the right fit, it may turn out to be the most rewarding and career-enhancing experience of your life.