How to Fix the 7 Most coarse Nonprofit Board Problems

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Nonprofit organizations are formed to meet a need in the community and to do it so that no one benefits financially (no dividends to investors). The Board of Directors of a nonprofit assosication has the extreme authority and responsibility for the organization. The Board is accountable to the organization's constituents (donors, clients, and the community) to ensure that the organization's mission is being carried out in the most standard way. It's a huge responsibility and it's not to be taken lightly.

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Many nonprofits have been in the news lately with a range of issues. From national organizations to local ones, we're finding a range of problems that could have been prevented by a Board doing its job.

It's never a good thing when a nonprofit is in the news for something that went wrong. It destroys collective trust in the assosication which can lead to the deterioration of funding from collective and underground sources. It can lead to the inability to recruit skilled, committed Board members, and in some cases, can deter population seeking help from the nonprofit.

There are many issues that lead to a nonprofit with collective problems. Here are the tasteless Board issues that can cause the negative spotlight. By finding at some of these problems and corresponding solutions, you can keep your Board on the straight and narrow road.

Problem #1. Board members who don't understand what it means to be a nonprofit Board member. Many Board members are recruited to help out and they fast agree because they care about the cause. Unfortunately, there are legal and financial responsibilities that population say "yes" to without knowing what they're truly getting into. This leads to them not taking their job seriously enough and staying on top of things later on. A microscopic instruction can go a long way toward helping Board members to understand the severity of their job.

Problem #2. Not asking questions. Every Board member is responsible for asking questions in the Board meeting about whatever they don't understand. Sometimes, the Board has a culture of not rocking the boat and questions are frowned upon. Other times, Board members are intimidated by the veteran members of the Board and don't ask questions for fear of finding stupid. At other times, members don't ask questions because they don't want to prolong the meeting. They'd rather just end the meeting fast and go home. Either way, it's a problem. When Board members don't ask questions, they don't have a clear understanding of what's going on.

Problem #3. Too much trust in the Board Chair. When the Board is chaired by person perceived as a trustworthy, knowledgeable leader, the rest of the Board can tend to become lax and stop asking questions. They assume the Chair is doing the right thing and for the right reasons, especially when things are going well. And they don't quiz, anything. In fact, when the leader is trusted, it seems silly to quiz, him/her. There's a balance of trust that must exist in the middle of the Board Chair and the rest of the Board in order for the assosication to function well.

Problem #4. Not enough transportation in the middle of the Board Chair and the rest of the Board. The Board Chair is privy to a lot of information about the inner workings of the assosication and should share foremost information with the rest of the Board. When things aren't communicated, it leaves the Board as a whole in the dark. Sometimes, the Board Chair naturally doesn't know what to share and what not to share. In the interest of transparency, the Board Chair should be open and willing to share everything.

Problem #5. Board not adequately reviewing financial information. One of the basic responsibilities of the nonprofit Board is to ensure financial stability. The Board should be usually reviewing financial statements to make sure the assosication isn't over committing itself, but is in a financially standard health to carry out its mission.

Often, small nonprofit Boards are comprised of private Board members who lack the skills to recite and understand financial reports. They mentally 'check out' by describing themselves as "not a numbers person" and let themselves off the hook. Unfortunately, this does not excuse them from development sure the assosication is financially healthy.

Problem #6. Lack of clear and standard organizational policies. The nonprofit Board is responsible for providing advice and direction to the organization, along with creating (and following) standard policies. Often, policies are created in response to situations where a clear-cut respond isn't obvious.

Problem #7. Lack of focus on stewardship. A nonprofit assosication wouldn't exist without its donors and supporters. One of the basic law of running a nonprofit is to be a good steward of the resources donated by others. A lack of stewardship results in arrogance and misuse of funds.

When an assosication is focused on stewardship, its leaders are always asking themselves if money is being used wisely. They value their purchases, routine expenses, and staff salaries to make sure they're fair and reasonable.

Many of these Board problems can be averted by training. A half-day of basic Board instruction with a knowledgeable teacher can head off many potentially disastrous issues and give private Board members a level of trust and understanding.

All Boards need enough procedures for recruiting Board members with enough skills and contact and providing them with a good orientation to the Board and organization. By setting population up for success from the beginning, nonprofits will avoid untold problems down the road.

Finally, all Boards need an every year self-assessment to make sure they're doing the best job they can. There is no "Board police" who will value a Board to see if it's doing a good job or not. A coach or counselor can help value the job the Board is doing and make recommendations or contribute training, but it must start with the Board itself realizing it needs help.

The silver lining in negative situations is that more population will learn more about the roles and responsibilities of a nonprofit Board. When Boards are stronger, nonprofit organizations will be stronger. And when more nonprofits are stronger, the community will be stronger.

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