• May 24, 2013

October 3, 2011, 10:45 am

Nonprofit Trustees Urged to Get Involved in Public Policy

Holly Hall, an editor at The Chronicle, is contributing guest posts based on her reporting from the annual meeting of BoardSource, an organization that seeks to help trustees to do their jobs better. The conference took place in Atlanta.

Trustees have many reasons to lobby against cuts in government support to charities and the people they support.

While the altruistic reasons usually get all the attention, one national nonprofit leader is blunt about the direct hit board members themselves will suffer if governments continue to slash spending to deal with deficit woes.

Proposed cuts in government support to charities are “a notice to nonprofit board members” that they must raise or donate more money for the charities they serve, Tim Delaney, head of the National Council of Nonprofits, an advocacy group that represents charities, told the conference here.

“You are in the…

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September 30, 2011, 11:05 am

What Trustees Should Know About Collaboration Options

Holly Hall, an editor at The Chronicle, is contributing guest posts based on her reporting from the annual meeting of BoardSource, an organization that seeks to help trustees to do their jobs better. The conference took place last week in Atlanta.

As charities face money woes and increases in requests for help, some groups have decided to merge with other organizations. But mergers aren’t the only way to reduce overhead and grow more efficient, said Jean Butzen, an Evanston, Ill., consultant.

Ms. Butzen, who has worked with many groups on what she called “strategic restructuring,” said that charities must carefully evaluate alliances because the risks are high—but so are the potential returns.

She outlined four types of collaboration that are helping charities across the country deliver services more efficiently, often at lower cost:

Joint-venture partnerships. Two or…

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September 26, 2011, 11:36 pm

Lessons in Working With Trustees

Holly Hall, an editor at The Chronicle, is contributing guest posts based on her reporting from the annual meeting of BoardSource, an organization that seeks to help trustees to do their jobs better. The conference took place last week in Atlanta.

Why do we need you?

That’s what anybody recruiting a board member should address before making a pitch. But nearly nobody does.

Most people neglect to say which skills matter and instead assure potential board members that the job won’t be much work. What they should say, says Susan Decker, a senior consultant at BoardSource, is exactly what talents and connections the charity wants to tap in a potential board member.

Ms. Decker offered that tip as part of a two-day course in Atlanta for trustees and staff leaders that covered nonprofit boards’ responsibilities and how to train new trustees.

While the course was not inexpensive…

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September 21, 2011, 12:24 pm

Five Ways Foundations Can Strengthen Nonprofit Boards

In two recent posts, I asked if foundations should be doing more to strengthen boards and whether we expect too much from boards. More than 50 readers provided thoughtful comments, with a range of perspectives, that are well worth reading.

Much to my surprise, most readers who commented thought foundations should indeed do more to strengthen boards. A third suggested more grants to support board development. A handful requested more foundation-sponsored training for boards, and one practical soul suggested that foundation staff members roll up their sleeves and help grantees find board members.

Your comments helped overcome my initial skepticism about whether boards need more intervention from foundations. Most of you think boards need the help. And the comments from my colleagues at other foundations indicate that a growing number of grant makers agree—and are tackling the…

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August 23, 2011, 9:14 am

Executive Directors Should Invest More Time on Their Boards

The more effort nonprofit leaders put into supporting their boards, the happier they are with the board’s performance—but few leaders spend enough hours working with trustees to make a difference.

That insight comes from a report called The Board Paradox, by CompassPoint and the Meyer Foundation, where I work. It’s the last in a series of three briefs that report on a national study of more than 3,000 nonprofit executive directors.

The briefs present survey results that were not included in the recent Daring to Lead 2011 report, which was released last month. (I am a co-author of the main report and the sole author of the brief on executives and boards.)

The online survey for Daring to Lead asked executives a series of questions about their boards. We asked about their relationships with their board chairs, how much time they spent working with and supporting their boards, …

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June 30, 2011, 9:37 am

Do We Expect Too Much From Boards?

Nonprofit board members did not get very high marks from their executive directors in the recently released “Daring to Lead 2011” report.

The report, produced by the Meyer Foundation and CompassPoint, is based on a national survey of more than 3,000 executive directors of small to midsize nonprofit organizations. (I’m a vice president at Meyer and a co-author of the report.)

Although “Daring to Lead 2011″ was intended as a study of executive directors, it is often difficult to separate the issues that affect executive directors from those that affect boards. And it’s a reminder that executives and boards have a complicated and symbiotic relationship.

In general, the report is critical of boards, citing relatively low levels of executive-director satisfaction with board performance, modest levels of board-member engagement (at least as reported by executive directors) in almost…

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June 20, 2011, 10:09 pm

Should Foundations Do More to Strengthen Boards?

When I started this blog last fall, an old friend who had been out of touch for a few years e-mailed me to share his thoughts about what needs to change before we will see widespread improvement in the effectiveness of nonprofit boards.

My friend is a very savvy retired chief executive with decades of experience working with boards, so I respect his opinion, which is that boards are never going to improve significantly unless, in his words, “foundations demand it.”

I’m skeptical.

Foundations are a smaller player in the nonprofit world than most people realize (and than those of us who work at foundations are sometimes willing to admit). Grants from foundations represent only a small fraction—just 13 percent in 2009—of total charitable giving to nonprofits. That may sound substantial, but private contributions are also only a fraction of all nonprofit income.

For many…

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May 6, 2011, 10:17 am

There’s No Penalty for Having Reserves

This is the final in a series of four posts on the subject of nonprofit operating reserves. Earlier posts flagged reserves as a topic that deserves more attention, explained what reserves are and why they matter, and discussed how organizations build reserves.

This post addresses two additional roadblocks to building adequate reserves: the perception among executive directors and board members that nonprofit organizations cannot operate at a surplus (or “profit”) simply because they are nonprofits and the impression that accumulating reserves will make the organization appear less deserving of funding.

In essence, the two ideas amount to the same thing: the perception that there’s a penalty—either legal or psychological—for building operating reserves. Which is not true.

Or at least it’s not for the overwhelming majority of organizations. The U.S. Better Business Bureau’s…

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May 3, 2011, 11:30 am

How Nonprofits Build Operating Reserves

My two most recent posts flagged operating reserves as an important issue that is often neglected by nonprofit boards and gave an explanation of what they are and why they matter.

Since 2009, when the Meyer Foundation supported an Urban Institute study of the operating reserves of nonprofits in Washington, I’ve spoken about the topic of operating reserves at numerous conferences and other gatherings. I usually try to make most of the same points and arguments covered in the two earlier blog posts.

Whenever I speak about this topic, the reactions from board members and executive directors in the audience are almost always the same. They look bewildered, as if I’d just suggested that they try to obtain a pound of enriched uranium or an albino giraffe. And then, hesitantly, someone will ask, “How do we get these ‘operating reserves’ you keep preaching about?”

My answer almost…

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April 29, 2011, 9:29 am

What Operating Reserves Are and Why They Matter

My most recent post noted that one of the reasons nonprofit boards don’t have more conversations about operating reserves is because there isn’t a commonly understood definition of reserves.

The Nonprofit Operating Reserves Initiative Workgroup—an all-volunteer group of nonprofit leaders, financial-management consultants, and others—recognized this problem in 2008 and since then has produced a white paper and a toolkit to help nonprofits and their boards better understand what reserves are and why they need them.

Those resources propose several useful and detailed definitions of operating reserves.

Here’s my own simplified version: operating reserves are liquid, unrestricted assets that an organization can use to support its operations in the event of an unanticipated loss of revenue or increase in expenses.

“Liquid” means that operating reserves are either cash or…

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