Episode 73: Nonprofit Governance - Why You Need Seasoned Board Members
Are you an Executive Director whose board doesn't do anything? Boards go through phases. Growth comes from adding seasoned board members who understand their responsibilities. Learn why having a seasoned board is important to the growth and consistent funding of your nonprofit (especially if You don't have much board experience).
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NONPROFIT SPOTLIGHT: 18th Street Art Center
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Podcast Transcript
Speaker 1 (00:01):
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, resident Philanthrepreneur, Amber Wynn.
Speaker 2 (00:26):
Good morning, fam. I'm back. Today we are continuing our series on nonprofit governance, the nonprofit board of directors, and I specifically say the nonprofit board of directors because you have board of directors and corporations and companies, and for-profit organizations specifically the nonprofit board of directors have a specific charge from the IRS. And so we've been talking about that over the last couple of episodes, and we're going to continue it and we're going to continue it because it is important, right? Today's episode is why you need seasoned board members. That may sound like a no-brainer, but we're going to dive in today so that you can get a better understanding of why having seasoned board members is going to make your life and your organization so much better. You know how we do it? We're going to pause for a second, and then when we come back, we're going to jump into why you need seasoned board members.
Speaker 3 (01:28):
This is you and this is your business. From invoicing your first client to your 10th client, to your hundredth client, you'll need to get paid quickly. Pretty soon you'll be ready to hire some help and you'll need to pay them. As your business grows, wave is there to grow with you.
Speaker 2 (01:59):
Welcome back. You're on air with Amber Wynn, Philanthrepreneur. We're continuing our series on the nonprofit board of directors. Today's topic is why you need seasoned board members. Listen, when I'm talking to potential new clients or even older clients and they're saying, I'm tired, I'm just challenged. I'm doing everything, I'm burnt out, my first question is, who's on your board? And they'll say, oh, I've got friends and family people who really believe in the mission. They support me. And I say, and that's why you burnt out. That's why you're tired. Because you have people on the board who do not understand what their role and their responsibility is. As a nonprofit board member, if they understood what their role and their responsibilities were, you wouldn't be tired because the primary purpose of the board is to lead the organization, is to fundraise for the organization. Those are the two things that they're really supposed to do.
(02:57):
And if they're doing their job, then everything's not going to be on you. But if they're friends and family with good intentions, people with good hearts, I hear that all the time. Oh no, they're really good board members. They really support me. My second question is, are they fundraising? Well, no, they're not fundraising. I'm like, then they're not good board members. They may be good people, but they're not good board members. A good board member understands that their role is to support the executive director end of story. So if you have people on your board that helped you start your nonprofit, this is what I suggest. I suggest that you start recruiting new board members who have experience, who understand what it means to be on a nonprofit board and who are willing to do the work, who understand that a part of their responsibility is to pay board dues.
(03:51):
People start to freak out when I say, is your board paying dues? Paying dues? They're asking me, how much do I get paid? They are not the right person for your nonprofit board. Board members who get paid, sit on corporation boards. And so right there, you have a disconnect. If they're thinking they're supposed to be paid, they're not the right person for your board. But here's the thing, did you know that I have people say to me, well, am I supposed to pay my board? And if so, how much? That lets me know that you as a founder, executive director have no clue about the role of your board. That's kind of scary, but it's a reality. That's another reason why you should have seasoned board members. If you don't know what a board is supposed to do, if you don't know how to create the culture on the board, it's like the blind leading the blind because you are the founder.
(04:44):
The people that you select on your board are following your lead. But if you walking backwards, guess what? They can't walk forward. So what I'm saying to you is having seasoned board members is going to help you move your organization forward. A seasoned board member is someone who has at least three, four years of experience. They understand what they're supposed to be doing. They are committed to your organization. How do they demonstrate commitment? They fundraise. They pay board dues. And you may say to me, oh, I can't find anybody like that. It's because you don't know what you're doing, and that's perfectly fine. That's why it is your responsibility to learn as an executive director, as a founder, you can't just stick your head in the sand and say, oh, yeah, my board doesn't do anything. They don't do anything because they're looking to you as the founder to guide them.
(05:38):
But if you start recruiting seasoned board members, they can say, alright, people we're supposed to meet every month and you meet every month. All right people, we need to have a board packet because in the board packet, the board reviews your financial statements. A seasoned board member knows that. But if you're having meetings every month, every quarter, twice a year, and all you are doing as the founder or executive director is just reporting out, and they're like, oh, that's great, that's nice. You're never going to go anywhere in a board meeting. You're supposed to show the board the financial statements so that they can look and see, oh wow, in six months, we're not going to be able to pay our executive director. We've got to do something. That is their role. It is not the founder's role. It's not the executive director's role to fundraise for the organization.
(06:29):
But if your board is filled with unseasoned board members, they don't know that you want board members on your board who have access to resources. They can pick up the phone and say, Hey, I need this venue because we're doing this program. Or, Hey, we need a line of credit because we're getting ready to get this grant, and there's a law in between. Or, Hey, can you get us some speakers for our panel? You want seasoned board members who can move your organization forward. You don't want just warm bodies. I have people say that all the time. Well, I wanted to know if so-and-so would be on the board. I think she's good. I'm like, what makes her good? Well, she's a good heart. She's really into education. That is not the criteria for a board member. The criteria for a board member is they understand what it is to be a nonprofit board member, that they have the resources to financially support the organization, that they have the commitment to go out and get additional resources outside of their personal funds, and that they understand that being a board member is not to benefit them, but it's to benefit the community and the organization.
(07:42):
So they have to be ethical and understand that the purpose of them being on the board is not to benefit them. Oh, well, you can get this contract. That's a conflict of interest. They understand that that's not their role right there. So having seasoned board members can exponentially move your organization forward because the people who are seasoned three, four years of experience can help make decisions, can help bring in resources, and can help increase your capacity because they're taking some of the load off of you as the executive director. I hope you heard all of that, because when we talk about increasing your capacity and we talk about the long-term longevity of your organization, it does rest with a seasoned board. Today we are talking about why you need seasoned board members. When we come back, we're going to answer one of your questions for me and ask Amber. But yeah, when we come back, ask Amber,
Speaker 4 (08:48):
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Speaker 5 (10:07):
Hey,
Speaker 2 (10:08):
You're back. We are back on air with Amber Wind, and today we are talking about why you need seasoned board members in our nonprofit board member series. Now's the time of the episode where you get to ask me your pressing question. This question is from Twitter, and it is from Craig from Lya Vista. And Craig says, hello, Amber. This is Craig from Lya Vista. My question is kind of simple. What's the number of board of directors should I have on the board? What's the number of board of directors I should have on the board? So Craig, in California and in most states, but in California, you are only required to have three positions. The president, the treasurer, and the secretary. If you have those three positions, then you've met the criteria for the number of board members that you are required to have. Now, the issue comes with the role of the board. The board is responsible for governance, guidance, fiscal management, fundraising. So if you only have three people, then you may burn out your board. You typically want to have a committee, right? A fundraising committee, a fiscal management committee, an events committee, whatever. So if you only have three people, you can't really create a committee. So you have your executive board, which is the president, treasurer, and secretary, but then you have additional board members.
(11:49):
You always want to have an odd number of board members so that you can break a tie. You never want to, that's one of the things I look for as a funder. I look at your board and I count and I say, if there is an even number, then you don't understand the role of the board because there should always be an odd number to break the tie. But I digress. So what's a good number? If you're just starting out, five to seven is a solid number of board members because you've got the three in the executive board, and then you'll have two additional regular board members. Or if it's seven, then you'll have, let's see, 1, 2, 3, 4, 5, 6, 7.
(12:33):
But if you think about the role of the board, I always let my clients know that the board should be fundraising to generate unrestricted funds. So that's your board dues. The more board members you have, the less that each board member has to pay out. So for example, if you only have three board members and you want them to raise $25,000 each year, then they've got to split that amount. But if you have five or 11, then they split that amount. So it's an easier lift for them in terms of dues. But at the end of the day, it really depends on your board. You don't want to have 25 board members if your organization is small, because that's just a lot of people to manage. People have their own personal agendas. So I would say 11 is a good number because then you can break off into small committees and you have a significant number so that if you want them to pay dues, it's divided among a nice number 11.
(13:42):
So that's my recommendation. If you're just starting out, start out with about five or seven, and if you're comfortable with your board, your board development, shoot for like 1115, right. Alright, that is Ask Amber, if you have questions for me, reach out to my social medias. You've got the website where you can contact me, www.amberynn.net, Instagram, Facebook, Twitter. I am there for you, and you can hit me up on email, at amber@amberynn.net. The next part of our episode is my favorite. I say it every episode. It is the nonprofit spotlight. It's because it's my opportunity to shine a light on the amazing work that nonprofits are doing in our communities. Today's spotlight is on 18th Street Art Center. 18th Street Art Center is one of the top artist residency programs in the US and the largest in southern California, conceived as a radical think tank in the shape of an artist community. 18th Street supports artists from around the globe to imagine research and develop significant, meaningful new artworks and share them with the public to foster radical imagination, empathy, and positive social change. Let's take a look at 18th Street Arts Center.
Speaker 6 (15:17):
Hi, my name is Christina David, and I'm an artist. We are here in Bucharest. I grew up in this town. As a child, I was inspired by geometry, algebra in ethics and logic due to my parents that were both mathematic teachers. Libraries also have been places from where I got my ideas. I choose to make art because it is the job that allows me the highest freedom. It gives me the possibility to study different fields and learn continuously. It comes with the public, which whom I can share all these wonderful things. I discover all this. Freedom sometimes brings me, of course, frustration, both financially and on personal level. I had moments when I felt that I should give up and I was afraid I would feel insignificant. But on the contrary, the team from 18th Street made me feel important and remarkable. As an artist, I see the richness that art brings to people. It makes us question, it makes us stronger. It forges bonds between us. It help us have empathy for one another. Art makes life worthwhile.
Speaker 2 (16:42):
If you're interested in supporting 18th Street Art Center, you can reach them at www.18thstreet.org. All right, so as we wind down this episode, we were talking a little bit about why you need seasoned board members. I want to also talk about seasoned in a different aspect. You definitely want people who have access to resources, who are willing to commit their personal finances to the organization, but you also want seasoned board members in the form of members from your target audience. So a lot of times you'll have these high-powered people on the board making decisions for your community. And even if they've had lived experiences, they may be too far removed. So let's just say if Amber Wynn was sitting on the board, I would consider myself a seasoned board member. And let's just say I'm sitting on the board of a youth development board for girls.
(17:55):
Clearly, I was a girl. Clearly, I've had experiences, but maybe times have changed right from when I was growing up. You've got technology, you've got just a whole different type of world experience. So yes, to some degree, because I have gone through some things that just don't change, right? Puberty doesn't change. Relationships with parents don't change. But I'm saying you want to have a person from your community on the board that is the age group that you serve right now, because they can provide the board with insights that are relevant right now. So let's just say if your population are girls from foster care, you want someone in that age group that you're serving to be on the board. Will they be responsible for board dues? No. They're youth, right? But they have an important role on the board because when the board's making decisions maybe about what type of programming or if they're looking to serve a specific community or partner with an organization, you have a person on that board with real life experience who is seasoned lived experience to say, yeah, that's not going to work. I remember one time when an organization was talking about how to have single moms provide healthier food for their kids in the inner city, and they did a focus group. So I'm looking at the food and I'm like, okay, it may be healthy, but this looks nasty. It was like carrots with carrots with raisins and yogurt.
(19:46):
It may have been good. No, I tasted it. It was not good. So I said, this may be healthy, but from a cultural standpoint, I am not going to eat carrots, raisins, and yogurt. And then how much does this cost? It is cheaper for me to go through the drive-through. Number one, I'm a working mom. I'm a single mom. I'm tired. At the end of the day, these meals that you're having me prepare, I'm tired. I'm not going to sit over a stove. Chop up this. And so I was able to provide insight that they hadn't thought about. Most of these women were retired, right? They were nutritionists. This is what they did. And so having my input allowed them to shift. And so they had a whole session on prep. Well, you don't want to do it every day. You want to do it Sunday, you cut up, whatever.
(20:38):
And so that kind of adjusted to help them meet the needs of their community. So when we talk about seasoned board members, we're also talking about people from your community who can help you create programs that really resonate with your audience. People who can tell you if something will work, or if you should be focusing on something that you never even thought about. So when you think about recruiting, make sure you have at least one representative on your board from the community that you're serving. It just helps to make your programs more robust, more relevant, and just staying in tuned with your community. Alright, so that's all we have for this week's episode. We are barreling through our series on the nonprofit board of directors and nonprofit governance. Be sure to tune in next week. If you enjoyed what you heard, like, subscribe, share with another nonprofit because I'm here to support you, and we want to get this information out to as many nonprofits as possible. So I will see you next week. But until then, make sure you take care of yourself, like you take care of your community.
Speaker 1 (21:55):
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.
