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The perfect board: it's as easy as one, two, three.


In today's challenging environment, nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive.

Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law.
 executives and boards agonize over the role of the board and its composition. Indeed, it is important for boards to understand their governance responsibilities. Additionally, each board needs to determine the particular skills, diversity, and relationships it needs among board members to accomplish its work.

When it is all said and done, however, the most important qualifications for each board member are intellect A natural language query program for IBM mainframes developed by Artificial Intelligence Corporation. The company was later acquired by Trinzic Corporation, which was acquired by Platinum, which was acquired by Computer Associates. , caring, and commitment to provide support. Without these attributes, board members are utterly useless to the organization. With these key ingredients among board members, the organization can achieve absolutely anything.

Intellect is key because the challenges facing nonprofits are far more complex than issues facing most for-profits. Caring is there because complicated financial and strategic issues require the board's focus and attention. Commitment to provide support is necessary because nonprofits rely on their board members to be generous, make introductions, and be articulate and passionate advocates.

The chief financial officer (CFO See Chief Financial Officer. ) of a children's services organization moved from a position as CFO in the for-profit sector when he took the position at the nonprofit. He went from a company that had annual revenues in the hundreds of millions to a nonprofit with an annual budget of $5 million.

Most people would assume it would be child's play child's play
n.
1. Something very easy to do.

2. A trivial matter.


child's play
Noun

Informal something that is easy to do

Noun 1.
 to move to an organization with a fraction of the budget. That's not the case. In fact, the for-profit had one price for its product, and customers bought it accordingly. The nonprofit, on the other hand, has more than a dozen funding sources for each of its programs. And, each of the funders had its own timetable and process for requesting funds and paying out grants or fees, as well as unique requirements of programs and services and expectations for outcome measurements and reporting.

In any given week or month, the social services social services
Noun, pl

welfare services provided by local authorities or a state agency for people with particular social needs

social services nplservicios mpl sociales 
 organization is juggling to adapt to changes, cuts, demands, or even new opportunities from one source of funding or another.

The CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  and the executive team must be nimble nim·ble  
adj. nim·bler, nim·blest
1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous.

2.
 and adapt to changes on a steady basis if they are to generate the funds to keep the doors open to the children and families who count on this organization's vital services. Additionally, the organization will need to be cognizant cog·ni·zant  
adj.
Fully informed; conscious. See Synonyms at aware.



[From cognizance.]

Adj. 1.
 of pending legislation and government funding patterns and educate key constituencies about the potential impact on programs and services.

To be useful and effective in governing the organization, board members must have the intellect to grasp the issues and recognize the complexities. The board members must realize that they cannot run the organization on a daily basis. Instead, the board needs to hire a highly qualified and capable chief executive. And yes, that highly qualified individual needs to be compensated and supported accordingly. The board needs to look to the CEO for expertise and organizational leadership.

Indeed, the board must hold the chief executive accountable to outlined goals and address the question-how are we doing--on a regular basis. The board and the chief executive need to agree on fundamental measures of success so that they can track progress and adjust course as needed as needed prn. See prn order. .

Board members need to care. Given the strenuous stren·u·ous  
adj.
1. Requiring great effort, energy, or exertion: a strenuous task.

2. Vigorously active; energetic or zealous.
 challenges in this environment, board members who do not pay sufficient attention will fail in their governance role. Those who attend meetings, read their materials, and care about the organization and its ability to serve will make the time that is necessary to be effective.

One of the many benefits of having board members of diverse backgrounds is that the organization's importance can be appreciated from a variety of perspectives. Most nonprofits provide meaningful value to people from a broad variety of backgrounds and neighborhoods.

To build a board comprised of people who care, boards need to reach out and include candidates from many different walks of life. Boards that understand the organization's significance from many viewpoints will become a powerful, positive force.

Finally, board members need to be committed to support the organization. This does not mean that all board members must be wealthy or connected to large, generous corporations or foundations. It does mean, however, that all board members should be enthusiastic about the organization's work to the degree that they will open their wallets to the best of their ability, and speak about the organization passionately among their colleagues and friends. Board members should be available to join the organization's executive or development director in meetings with funders to advocate for the group.

One of the primary values board members can add is to communicate about the organization throughout the community. Here again, boards comprised of people from diverse backgrounds will relate to and reach out to a broader scope of individuals and institutions whose support will be important.

The ideal is to have a board comprised of people who have the intellect to understand the strategic and financial issues, the caring to pay attention, and the commitment to support the organization. Unfortunately, the ideal is rarely achieved. In reality, many organizations are fortunate to have even a small band of individuals with these three key qualities.

It is often astounding a·stound  
tr.v. a·stound·ed, a·stound·ing, a·stounds
To astonish and bewilder. See Synonyms at surprise.



[From Middle English astoned, past participle of astonen,
 to see how much even a minority of board members can achieve when they are passionate and willing to focus themselves to strengthen the nonprofit organization Nonprofit Organization

An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well.

Notes:
Examples of non-profit organizations are charities, hospitals and schools.
. There are tales of organizations that were rescued and turned around because of the heroic he·ro·ic
adj.
Relating to a risky medical procedure that may endanger the patient but also has a possibility of being successful, whereas lesser action would result in failure.
 efforts of a few. Most of the time, such heroism Heroism
See also Bravery.

Achilles

Greek hero without whom Troy could not have been taken. [Gk. Lit.: Iliad]

Aeneas

Trojan hero; legendary founder of Roman race. [Rom. Lit.
 is not even publicly recognized. But those who commit themselves rarely do so for the accolades. They do it for the children, or the seniors, or the students; for those who are sick or in need of food, home, or shelter; or for those who seek inspiration through the cultural arts.

It's as easy as one, two, and three. The time has come for boards to demand that their members understand, care, and do. The future of the nonprofit sector is at risk, but with devoted board members who grasp the issues and commit themselves, our communities will thrive with strong health and human services Noun 1. Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979
Department of Health and Human Services, HHS
, better education, lively arts and culture, and vital economies.

Alice Korngold is president, chief executive officer and founding executive of Business Volunteers Unlimited (BVU BVU Buena Vista University (Storm Lake, IA, US)
BVU Business Volunteers Unlimited
), a Cleveland, Ohio-based national organization that engages businesses in strengthening the nonprofit sector. Her email is: akorngold@businessvolunteers.org
COPYRIGHT 2005 NPT Publishing Group, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:Boards
Author:Korngold, Alice
Publication:The Non-profit Times
Date:Jan 1, 2005
Words:1051
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