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December 2021

Barriers to the boardroom: Where’s our seat?

By Sponsor Insight

by Tashi Copeland, communications manager at CICF

This year, I turned 29. This means old enough to vote. Old enough to grab a glass of wine at Daniel’s Vineyard. And old enough to rent a car. And while I have years of professional experience — and even a few gray hairs — I’m still not top of mind to be a member of anyone’s board of directors. Why is that?

I had the opportunity to watch Dr. Una Osili, associate dean for research and international programs and Dean’s Fellow for the Mays Family Institute on Diverse Philanthropy at Indiana University Lilly Family School of Philanthropy, present The Truth About Board Diversity. During her presentation, Dr. Osili indicated that while diversity may be trending positively regarding gender — and making some progress with racial diversity — age is still a challenge in the not-for-profit board makeup.

“We find that age is an area where many nonprofits simply do not have anybody under the age of 39 on their boards. And 39 is not necessarily young, but that just gives you a sense that board members tend to be much older than the average population,” Dr. Osili said.

As of 2021, the average age of the U.S. population is 38. When board members are such powerful pieces of the not-for-profit chessboard, organizations must commit to making their boards reflect the communities they serve. For these organizations to successfully do this, they must address some barriers young people face in obtaining these seats.

One such barrier is mandatory-giving policies for their board members. According to a 2018 Board Source Survey, 68% of not-for-profit organizations have a policy requiring board members to make a personal contribution annually. I understand that board members need to prove their commitment to the organization beyond attending board meetings, and a financial gift easily checks that box.

But consider this. In 2021,

So, while my fellow Millennials and I would love to make a sizeable donation, our current cost of living may not allow us to give the extra $5,000 to sit on a board. And that should not take us out of the running to serve as leaders. Young people have time and talent — just not as much treasure.

Now is the time for organizations to create diverse boards and put their capital in action by sponsoring a board seat (look to the Mosaic Fellowship for a potential roadmap). Many organizations’ boards and executive leadership have voiced their struggles about engaging with younger generations. Inviting us to the table would be a game-changer and ensure a smoother transition from one generation of leaders to the next.

Some may have concern that someone younger simply does not have the life experience to lead. This case doesn’t hold anymore. Our technological revolution has led my generation to learn, connect, and produce faster than ever before. Additionally, we’ve grown into adulthood during some of our nation’s most significant historical moments — 9/11, marriage equality, the Great Recession, the tragic normalization of school shootings, a racial reckoning, and a global pandemic, just to name a few. As a result, our worldview was developed through a newer lens of empathy and an appreciation of diversity than previous generations, which most are still wrestling with. But that doesn’t quite translate nicely in LinkedIn profile. Maybe we should all start adding that to our resume’s special skills section?

Including a younger demographic in board structures has proven success. According to the Impact of Diversity Study, boards with higher percentages of members aged 39 or younger tend to be more engaged in governance and have higher involvement. Additionally, this demographic is more likely to have board members who ask others for donations. Young people are more than willing to give up their time while also leveraging their networks to bring in dollars. The engagement is there. The fundraising is there.

If organizations continue to lack the intentionality of having younger representation during quarterly conversations, the voice of an entire generation will be silenced. Organizations literally can’t afford to take that risk. Don’t continue to use board tenure or limited networks as excuses. So many organizations have risen to the challenge of navigating and reworking business practices during this global pandemic. Increasing diversity in the boardroom is just another modification these organizations will have to address.

One of the most powerful concepts when speaking on diversity is the diversity of thought. Bringing in younger board members allows organizations to gain perspectives from a generation redefining business strategy, economic success, and stakeholder priorities. Organizations can fully view operational and reputational risks and opportunities for growth through a new lens by simply inviting this next generation of leaders to the table. We’re ready.

How we adapt to change can lead to positive transformation

By Sponsor Insight

by Allie Petty-Stone, HR and firm administrator, Alerding CPA Group

We could all agree that during the many seasons of this pandemic, the only thing that seemed consistent was change. Many organizations were facing dilemmas on business continuity and workforce retention while many of us were dealing with our own personal anxiety and uncertainty. We stood in a state of “standby” as we awaited each federal, state and/or municipal update, considering how each announcement could alter the terms of how we engaged business and how it may impact the livelihoods of our people.

The crisis demanded continual high-level interaction and engagement with our leadership and how we proceeded was crucial. It was during this period that communication was critical in keeping our staff informed, however, it felt every update became obsolete as a new media blast would often change the basis of our plan.

Through this dilemma, we quickly realized that good business and best laid plans can be suddenly upended by the happenings within our world. Our team had to be adaptive and malleable with onlooking colleagues and stakeholders counting on us; we had to be ready to respond.

First, let me say I’m a believer in finding the silver linings. Self-actualization can be surmised up by perceiving life’s challenges and difficult situations as a gift. It is within these parameters that we find out more about ourselves. Do you welcome the possibilities that can be evoked through change?

Challenges once perceived as an adversary can ultimately turn into an unintended friend. Yes, these disruptors are inconvenient to our way of life and have the poorest of timing. However, if you look on the flip side, these are tests of our readiness and our willingness to ponder solutions. Whether it be people related or situational, we have an instance to grow, learn and build our skills.

Use change as an opportunity

Change is the opportunity to upend the mundane and breathe new life in our own rationale. Engaging with colleagues, advisors and even a team of strong-minded friends is essential to draw on solutions, hone creativity and offer diverse opinions. These have been some difficult months and the struggle continues for many. Change also serves as a reminder to routinely evaluate our business model and to never get too comfortable with the status quo.

A crisis necessitates change and, as a result, we witnessed many businesses modify how they delivered services for business continuity. Many restaurants moved to a pick-up service during lockdown. Some businesses implemented work-from-home scenarios and implemented more technology to create better connections and a secure environment. Nonprofits held fundraisers through online events and auctions. This creative thinking led to alternate opportunities. These opportunities kept connection to their people and communities. Therefore, the pandemic offered an occasion to look through a new lens and create transformation.

Change also can be cruel, so I do not mean to oversimplify or diminish any pain. However, how you overcome your circumstances is what can make or break you. Accepting that there are times that things happen FOR us rather than TO us is a part of discernment.

Your perspective and next steps determine your resilience and agility through these experiences. With each hurdle, you will become more adept and learn to embrace change rather than just simply “getting through it.” I wish you a positively transformative 2022 and beyond.

6 leading nonprofit trends to look out for in 2022

By Feature

Philanthropic researcher, educator predicts a year focused on equity, smaller donor pools, innovation, mission and new HR policies

by Shari Finnell, editor/writer, Not-for-profit News

As local nonprofit teams plan for another calendar year, the agenda most likely will include strategies for embracing change, innovation and sustainability in numerous areas, according to Amir Pasic, Eugene R. Tempel Dean of the Indiana University Lilly Family School of Philanthropy.

With the pandemic and social protests representing some of the most disruptive events in the nation’s history, nonprofits are being forced to regroup on how to carry out their mission and operations, Pasic noted. “Almost all of our lives were turned upside down in many ways,” Pasic said. “The nonprofit philanthropic sector was no exception.”

Pasic pointed out six trends that nonprofits will likely need to address as they move into a new year.

1. Integrating equity as a long-term solution. While conversations and news around racial equity may not be as intense at the height of social justice protests, it will remain at the forefront of agendas of nonprofits, Pasic said. 

“When you had the kind of material, economic consequences of COVID, and then afterwards the killing of George Floyd and other black citizens, you saw the rise of racial reckoning and that becoming a global phenomenon. Equity and inclusion became major topics,” he said. “The fervor might have dissipated a bit, but I think those priorities are going to be there permanently for the nonprofit sector because so many of us became aware of the fact that our institutions and practices have been exclusionary.”

With the growing awareness around racial equity, Pasic added, it will have a “differential impact on nonprofits, depending on where they stand.”

2. Relying on a smaller pool of donors, mostly wealthy. Another trend that emerged during the pandemic is a shrinking pool of donors, Pasic said. “One of areas of research that has been interesting but somewhat worrisome is that giving continued to grow, but it came from a smaller number of donors,” Pasic said. “There was pretty strong evidence that donations are coming from a smaller number of wealthier people. We will be looking to determine if that trend will continue.”

Pasic said that nonprofits will need to make further adjustments if that trend remains. They will need to understand the best strategies for engaging a smaller number of donors until they can expand their donor base. “They need to ask, ‘How do you balance that with planning for a future where you’re trying to replenish those donors over time?’,” Pasic said

3. Rethinking employee work schedules. Another concern related to equity emerged during the pandemic when some employees easily transitioned to working online, while others faced downsizing or layoffs because they jobs demanded an in-person presence,according to Pasic.

Human resource leaders will need to explore ways to adopt hybrid work models while addressing the needs of all employees. “It looks like there’s going to be all kinds of different combinations of people working remotely,” he said.  

4. Offering a mix of in-person and online volunteer/giving opportunities. During the pandemic, a significant number of nonprofits offered volunteers ways to continue to support the mission remotely, Pasic said. “More people started giving online, engaging online and trying to figure out who they can help online,” he said. “At the same time, we saw an upsurge in neighbors helping their neighbors. We saw people knocking on the doors of neighbors they may never have met before to see if they could help by shopping for groceries.

“I think we’re going to see more of this type of decision-making in the future,” he added. “People will continue to figure out what it is that they can do remotely and when they have to travel.”

5. Remind your team of your mission. With many nonprofit organizations undergoing unprecedented changes in adjusting to challenges, it’s important to take the time to focus on the mission, Pasic said.

“In times of difficulty, it’s important to remind yourself why you exist. What is your mission?” he said. “Revive that purpose. It’s not only a time to remind yourself of what that is, but for those who are your champions. It can sometimes be forgotten when we’re all scrambling to make it through the day, but I think that that sense of mission can be rejuvenated and give you some energy to start the next day.”

6. Embrace innovation as an ongoing pursuit. “The pandemic has shown us that there’s no reason to keep doing the way we’ve been doing,” Pasic said. “A sense of innovation and possibilities are some of the positive things that came out of the pandemic. When we know our mission, then we can think of innovative and interesting ways to pursue that. We need to take some of the things we learned during the pandemic and apply it to the future.”