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Jun 16

‘Get on Board’ Returns June 23 to Connect Community Leaders With Local Nonprofits

By Feature

INDIANAPOLIS — Leadership Indianapolis will host its annual Get on Board event on Monday, June 23, at Newfields, bringing together more than 130 nonprofit organizations and hundreds of community members looking to make a difference.

Presented by AES Indiana, Get on Board serves as a gateway for individuals to explore nonprofit leadership, committee service, and volunteer opportunities across the city. From arts and education to housing, health care and environmental advocacy, participating organizations span a wide range of missions.

The event offers a rare opportunity: a one-stop setting where people from all backgrounds can connect directly with nonprofits and discover how their time, skills and experiences can support meaningful change.

A Pivotal Time for Nonprofits

As the nonprofit sector continues to recover from pandemic-related challenges, many organizations are facing renewed uncertainty in funding and programming. Community engagement—including board service and volunteer leadership—is critical to navigating these disruptions.

“Nonprofits rely on dedicated community members to fulfill their missions,” said Beth Perdue Outland, vice president of Leadership Indianapolis. “Get on Board helps many individuals take that first step toward engagement, whether through governance, committee work or hands-on volunteering.”

Building Boards That Reflect the Community

A growing body of research highlights the importance—and ongoing challenges—of diversity in nonprofit leadership. According to BoardSource’s 2021 Leading with Intent report, just 29% of board chairs felt their boards reflected the communities they serve. Despite incremental progress, only 10% of board members surveyed identified as Black, and just 5% identified as Hispanic or Latino. Age diversity also lags, with more than two-thirds of board members over the age of 45.

Leadership Indianapolis hopes Get on Board makes it easier for more people to participate in our city’s civic life.

“Diverse leadership is essential for nonprofits to truly understand and serve their communities,” said Rebecca Hutton, president and CEO of Leadership Indianapolis. “We want every attendee to feel welcomed and encouraged to step into these roles.”

The Value of Varied Experience

Nonprofit boards require more than passion for a cause—they need a breadth of expertise to function effectively. Legal, financial, communications and technology professionals all bring critical value, even if their day jobs don’t directly align with a nonprofit’s mission.

“While a youth services organization might need mentors, it also needs accountants to manage its budget and marketing experts to help tell its story,” said Hutton. “There’s a place for everyone to contribute meaningfully.”

Younger professionals, often underrepresented in boardrooms, bring their own assets: digital fluency, wide social networks, and fresh perspectives. Savvy organizations are taking note.

Expanded Format for 2025

The 2025 Get on Board will be the largest to date, featuring an expanded venue footprint at Newfields and extended hours from 4 to 6:30 p.m. Admission is free with registration and includes same-day access to the museum and gardens.

Attendees can expect an informal, welcoming atmosphere where organizations are eager to share their missions and discuss how individuals can get involved.

“Get on Board creates meaningful connections between talented individuals and organizations that need their voices and skills,” Outland said.

For Patrick Jessee, CEO of Enable, the event marked a turning point. “After moving back to Indiana from Washington, D.C., I wanted to reconnect with the community,” he said. “At Get on Board, I found a mission that meant a lot to me personally.” That led to a board position with the Boys & Girls Clubs of Indianapolis, where Jessee also went on to serve as board president.”

How to Participate

Get on Board will take place Monday, June 23, from 4 to 6:30 p.m. at Newfields. Admission is free, but advance registration is required. Whether you’re a seasoned board member or exploring civic engagement for the first time, the event offers an opportunity to find your place—and make an impact.

For more information and to register, visit https://leadershipindianapolis.com/programs/get-on-board/

Dec 18

Considering a board assignment?

By Sponsor Insight

What you really need to think about before joining a nonprofit board.

by Christy Shepard, managing member, Planning Plus LLC

As we approach the new year, many of us reflect on how to increase our positive impact on our local communities. Joining a nonprofit board is a wonderful and altruistic way to serve your community and causes.

Through our professional engagements, our team is often brought into organizations to assist with board leadership and development, helping support the role of the board and its committees in line with their strategic plans. We talk to board members and agency leadership about the qualities and skills desired in board members and how to align them for a successful board engagement.

If want to become a board member, first consider, how much do you know about the role? Next, ask yourself how much do you know about the organization that is requesting your time, talent, and treasure? After working with numerous organizations with diverse pools of board members for 35 years, we recommend reflecting on the following questions and tips before signing on the dotted line.

Why are you considering joining a board? There are a lot of reasons and motivations for being connected to a nonprofit through a volunteer commitment; joining its board is just one. Board membership can be a significant commitment. What do you have the capacity to give beyond what you are doing today? Can you give more time to a committee or task force or are you truly ready for board leadership?

What is the required commitment of time, talent, and treasure? Every board is different as is the level of time required for your board role, both in and outside of board and committee meetings. However, Board Source, a trusted index of nonprofit best practices information, provides a clear set of 10 basic responsibilities every board must provide at a minimum to ensure proper oversight and due diligence.

  1. Determine the organization’s mission and purpose. It is the board’s responsibility to create and review a statement of mission and purpose that articulates the organization’s goals, means, and primary constituents served. It is wise to review both as well as the vision as part of the strategic planning process.
  2. Select the chief executive. The board must reach consensus on the chief executive’s responsibilities and are responsible for selecting and hiring the most qualified individual for the position.
  3. Provide proper financial oversight. With assistance as needed, the board is responsible for developing the annual budget and ensuring that proper financial controls are in place.
  4. Ensure adequate resources. One of the board’s foremost responsibilities is to provide adequate resources for the organization to fulfill its mission. Key resources include the professional talents, skills, and contacts that board members can provide in support to the chief executive.
  5. Ensure legal and ethical integrity, and maintain accountability. The board is ultimately responsible for ensuring adherence to legal standards and ethical norms. As part of the mission and vision review, it is recommended that the board review the organizational values in line with the desired culture to support the mission and the stakeholders.
  6. Ensure effective organizational planning. Board members must actively participate in an overall planning process and assist in implementing and monitoring the plan’s goals. Ongoing monitoring of the plan goals should be part of committee and board meeting work.
  7. Recruit and orient new board members and assess board performance. Boards have a responsibility to accurately articulate qualifications and commitments required of candidates, orient new members and provide resources and support to perform duties, and periodically and comprehensively evaluate its own performance.
  8. Enhance the organization’s public standing. The board should clearly articulate the organization’s mission, accomplishments, and goals to the public and garner support from the community. If there is an issue of brand and reputation, it is incumbent upon the board to address and act in line with its mission and community promise.
  9. Determine, monitor, and strengthen the organization’s programs and services. While the day-to-day operations and programing decisions are left to the staff, it is the board’s responsibility to determine if programs are consistent with the organization’s mission and to monitor their effectiveness.
  10. Support the chief executive and assess his or her performance. The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization.

Board structures: Working boards and governing boards

Board structures can be designed to serve different purposes for the organization, each requiring different levels of engagement and decision-making from the board members based on board maturation and organizational life cycle.

Organizational lifecycles affect the type of board needed for the organization at a particular moment in time. An organization just getting started and embarking on grassroots marketing and fundraising would likely require a working board with a different set of skills, connections, and time commitments than a governing board of an established, financially sound, and thriving nonprofit organization. Every board is different, and the level of time required for your board role, both in meetings and outside of meetings, will vary depending on numerous factors. What the board role should be providing in these areas may or may not be a level you can provide.

Let’s talk about two critically important types of boards, working boards and governing boards.

A working board is typically found in a young or grassroots nonprofit, with limited or no staff. Working boards have the 10 governing responsibilities of most boards as well as additional responsibilities tied to operational performance. These board members are responsible for setting and carrying out the board’s strategic plan and directives. While some may see this as blurring lines, a working board is often operating out of necessity. It is essential that these board members remain committed to the directives of the board rather than acting on their own accord. Hiring full-time staff is probably on the horizon for these working boards, but not financially feasible now.

A working board is responsible for both the governance and management of the organizational strategies with often requires more adherence to structures that allow for consistent implementation while providing operational flexibility and responsiveness.

A governing board is the traditional style many think of when referring to board service. A governing board oversees the strategic direction of the organization and monitors operations from a distance. These board members typically operate under 2- or 3-year term limits to foster the turnover of members and ideas. This board is strictly distinct from a working board as it is a board over governance and NOT management. The outcomes of their decisions and votes are used to guide the actions of the chief executive and their staff.

Either way, both sets of board members carry both fiscal and fiduciary responsibility for the organization. What exactly does this mean? Board members are responsible for balancing the budget, reducing debt, and ensuring that the organization is not spending more than it is taking in. Additionally, board members have a legal and ethical obligation to act in the best interest of the organization, putting the interests of the overall organization ahead of their own.

Still ready to make the commitment? Do your research.
This information is not presented to scare anyone out of board involvement and participation but to give an overview of the true importance and responsibilities of a board of directors. If you’ve been asked to join a board, it is likely because you have the talents and skills, as well as perspective and qualities needed by the organization. Take time to research the mission and impact of the organization carefully and thoughtfully by reviewing the board bylaws, committee structures, and current strategic plan. Review the most recent board development plan and board roster to ensure that they are realistic goals. And finally, be sure to fully understand the financial and time commitments required for board members to help bring the mission to life.

Board and staff members are some of the most powerful and impactful resources nonprofit organizations have. Understanding how much responsibility and influence you have as a board member can make all the difference in the world.

Mar 21

Dashboard reports improves teams’ ability to analyze results

By Sponsor Insight

by Mike Staton, chief financial officer, Alerding

Data, data, data! Nonprofits and for-profits alike have more data than ever to track, understand and utilize in carrying out their goals. It’s easy to quickly become overwhelmed.

To help get the process started, consider creating dashboards.

Dashboards are short (normally one page) graphical representations of data that can provide the key measurements to make informed decisions. They can show program results, financial results, or any other data that needs to be communicated to a group, and they can be helpful internally for staff uses as well as higher level use by a board of directors or finance committee.

One way to use a financial dashboard like the one shown above is to include it as the cover page in the financial packet when sending monthly financial statements to your finance committee. Dashboards are relatively quick to update once they are created, and they can accomplish the following:

  1. Easier to understand for those that are not experienced in reading financial statements. Many members of your board of directors and finance committee may not fully understand how to read financial statements. A dashboard provides them the opportunity to see trends and benchmarks that they would otherwise miss.
  2. Quicker to understand than the full financial statements.
  3. Provides a frame of reference for reading the financial statements. Once individuals look at the dashboard, they have a basic understanding of how well the organization is performing. This helps put the financial statements into perspective as they are reviewed in detail.

The benefits of financial dashboards described above can also be achieved through program dashboards. The format of these can vary greatly from one organization to the next, since programs and outcomes vary, but the basic process is the same. Management must first identify what information is relevant to them and will help in running the organization. Next, goals must be set so that management has something to compare with the actual results. After that, the dashboard can be created and updated periodically with the most recent program accomplishments.

In today’s environment, finding efficiencies and cutting out non-critical tasks is key to running effective programs. If utilized properly, dashboards can be very beneficial in helping focus efforts and leading to well-informed decisions. To find out how a dashboard can benefit your company or organization, contact Alerding CPA Group at 317-569-4181 or www.alerdingcpagroup.com.

Mar 14

Achieve better board engagement through training

By Sponsor Insight

by Jodi Snell, senior consultant, Hedges

The most common pain point we’re hearing about from the nonprofit community is how to increase board engagement. Despite good intentions, some board members are struggling to make in-person meetings work with their back-to-the office schedules, others turn off their video and multi-task during board meetings, and yet others have a hard time following-through with assigned tasks. In a world where there is never enough time, and we all have competing priorities, the need to focus on what is essential has never seemed more important.

So, the question isn’t just how do we engage our board, but how do we engage our board in its most essential functions? At Hedges, we have found the key to engaging board members in the ways they’re needed most comes through effective training and setting clear expectations. If board members don’t know their responsibilities or how to execute those responsibilities, then successfully engaging as a board member will be quite the challenge.

When we onboard new staff, we are mindful of making sure that expectations are clearly communicated and that staff are adequately trained to meet those expectations. The same should be true for board members of our organizations. Based on our experience in educating board members through our work with nonprofit organizations and in our Lead with Purpose Board Training Series, we find the following three items to be at the core of successful nonprofit board education:

  1. Prioritize board training and onboarding. Prioritizing board training and onboarding is as important as prioritizing the training and onboarding of your staff members. This prioritization can happen in different ways. The first way to prioritize board training is to instill a culture of learning for the organization, including the board. This culture gives board members permission to seek information, not have all the answers, and know they will have access to the information necessary for them to engage in their key responsibilities. The second way is to allocate appropriate financial resources to provide initial and ongoing education opportunities for board members. Whether those resources are used for individual members to attend different workshops in the community or to bring in a third-party to provide training to the full board, prioritizing financial resources will be important to ensuring access to the best practice knowledge they need. The third way to prioritize board training is to allow realistic time for members to be trained and onboarded. Often board onboarding is done over one short meeting or even a document provided electronically via email. Whether it’s setting aside a full day, a couple of hours, or part of a board meeting, providing time for board members to receive training is key to successfully educating the board.
  2. Create a partnership between the Board and the Executive Director. The misconception that the board should be managing the Executive Director creates a tenacious power dynamic. When the board is trained and onboarded in a way that helps them to understand their valuable and distinct role as a board member, it is much easier to build a productive partnership between the Executive Director and board. This partnership can be built on shared leadership and learning where the Executive Director and the board lead together and learn from each other. In this shared leadership and learning, meaningful conversations and trust build making it easier to operationalize board governance best practices. Additionally, a board that is trained and that doesn’t have to be managed empowers the Executive Director to focus on their unique role in leading the organization to success rather than spending time “managing up.”
  3. Continually assess the board to understand their strengths and needs. Just like professional development for our staff members is ongoing process, learning for our board members should be continuous. Board training is not just a one-time event, but an ongoing component of healthy governance. As a start, it is good practice to train new board members during board orientation as they join your organization. In addition, it is good to provide the opportunity for board members to assess themselves and identify areas for continued learning. This can happen through a formal board self-assessment, a simple board survey, or a conversation between the Executive Director and board members to understand:
  • How well do they think they are executing their responsibilities as individual board members and as a full board?
  • What needs or questions do they have about their role as a board member?
  • Do they feel they have received enough training to engage in an effective way?
  • Do they find this experience to be meaningful to them and what could make it more meaningful?

By understanding these things, continual education can be provided to the board in the topics where they need the most support. Fundamentally, board members should receive consistent training and “refreshers” on general information about the organization, like your vision and goals; the basic responsibilities of board membership; how to best engage in fundraising; how to recruit, onboard, and offboard members; and the purpose of committees, and what it means to keep committees active and effective. However, having the board assess itself regularly creates time for reflection and gives board members an opportunity to identify where they might need to focus individually and as a board to maximize their efforts for the organization.

In our 20 years of experience in nonprofit advising, our team at Hedges has learned that board engagement is critical to an organization’s success. An engaged board is a trained board, and board training is a constant, ongoing process. If you’re spinning your wheels wondering: “Why is my board struggling to engage in its essential functions?” consider implementing the three steps we’ve outlined above.

Want additional support? Encourage your Board members to join our next Lead with Purpose Series, offered from August through November 2022. For more information visit: https://www.hellohedges.com/training/.

Jodi Snell is Senior Consultant at Hedges and a BoardSource Certified Consultant who loves to empower board members on how to be most effective in their roles. With a passion for educating and training, Jodi works closely with organizations to lend her expertise related to board governance, fundraising, and strategic planning.

Dec 20

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.

Sep 13

Board of governance or board of management?

By Sponsor Insight

by Jan Breiner Frazier, owner, Planning Plus, LLC

A not-for-profit board of directors can play one of two roles — that of a board of governance or a board of management. Both are valuable and can be highly effective. What type of board does your organization need?

Much of this depends on the current reality of your organization in this volatile time. But, more often than not, it depends on the strength, skills and expertise of the CEO/executive director. When we have been asked to assist with CEO/ED searches, one of the initial questions we ask is “What is the relationship you want to have between the board and the CEO?” Of course, the general response is that of collaboration, open and honest communication, transparency, etc.

When we think about board governance, we generally refer to the “10 Basic Responsibilities of Non-Profit Boards,” the seminal piece by BoardSource. For the majority of our clients, the board of directors is one of governance, ensuring the adoption of a mission statement, overseeing the financial health of the organization, promoting the organization, etc., and — most importantly — hiring the CEO and giving that individual the responsibility for all personnel decisions. In an established organization, a board generally serves in a governance role, using board member skills to fill in gaps with varied experiences and expertise to help advise and guide staff.

A very strong CEO — one who is independent, focused and driven — may often desire a board that is more than willing to stick to governance and stay out of operations. Enough information is shared so that board members understand the general finances, challenges, and priorities — but the less involved the better.

A board of management is generally more hands on, becoming intricately involved in making and often implementing operational decisions and contributing a great deal of time to the organization. We generally find this type of board with new non-profits, start-ups, in-crisis situations, and in organizations going through significant leadership transitions. Over time, with the right people in place, the board of management can slowly evolve into a board of governance.

Unfortunately, we have seen CEOs who abdicate their responsibilities to the board due to the fear of making decisions, a reluctance to engage in controversial discussions at the board level, or an inadequate level of skills necessary to ensure the organization’s success, leading to boards of governance slowly evolving into boards of management whether they intended to or not. And it’s hard to retreat from that position.

The one constant, however, whether a board of governance or board of management, is the requirement to assist with resource development for the organization (yes, fundraising).

The recommendations we offer below are nothing new and may seem simplistic, but implications to the board are far reaching:

  1. Be very scrupulous in hiring the CEO of the organization in terms of the relationship desired between CEO and the board. Be clear on the expectations of the new hire; carefully identify the needed experience, skills, and behaviors; be diligent in reference checking, including reaching out to board members of the previous organization; and ensure the entire board is on the same page as to the leadership needs of the organization and the level of autonomy it will give its new leader.
  2. Be equally scrupulous in selecting a board chair. Too many organizations have a pre-determined hierarchy, i.e., the vice president automatically becomes president and other officers line up for future succession. The board chair must be someone who meets a similar set of standards you would require in the CEO: strategic in thinking, visionary, strong and effective communicator, ability to manage change and conflict, etc.

Whether your organization has a board of governance or board of management depends on the needs of the organization as it continues to evolve. Just be sure you know which one you want.

Jul 12

3 essential practices to create an inclusive board culture

By Sponsor Insight

Ask the challenging questions needed to achieve alignment with diversity goals

by Erin Hedges, president, Hedges

Despite good intentions, there is still much diversity, equity, and inclusion (DEI) work to be done in the nonprofit boardroom. A June 2021 report from BoardSource indicates that while boards may be getting slightly more diverse, they are far from representing the communities they serve, and recruitment practices too often lack alignment with diversity goals.

At Hedges, we are challenging ourselves to question traditional board governance practices and identify new ways for organizations to create a more diverse, equitable, and inclusive board culture. Resulting from our learnings, we share three practices for nonprofit leaders to consider:

  1. DEI work should be grounded in an organization’s “why.” Too often, the purpose of recruiting diverse board members is to “check a box” provided by funders on a grant application. This narrow approach misses the opportunity for important board-driven conversations that can identify how diversity in representation, lived experiences, and perspectives can unlock greater potential for the organization. By taking time to uncover the reasons “why” an organization needs more diversity in the boardroom, boards can identify the specific purpose for board-led DEI efforts and create a collective responsibility to move these efforts forward.

To get started, BoardSource offers specific questions boards can ask themselves to explore an organization’s purpose for having a more diverse boardroom including:

  • Is our organization’s reputation being negatively (or positively) impacted by our board’s composition vis-à-vis diversity?
  • If someone were to make assumptions about our organizational values based on our board composition, what would they be likely to think?
  • How well are we cultivating a deeper understanding of the community or communities that we serve and bringing their perspectives, needs, feedback, and priorities into our strategic boardroom discussions?
  • Are we ever at risk of making decisions without fully understanding how these decisions may affect those we serve?
  • If we were to make a deeper commitment to diversity, inclusion, and equity, what would that mean for our mission, our work, and the people we serve?

Once the board can formulate responses to these types of questions, it will gain clarity as to “why” board diversity matters and what the organization has to gain. The board will have identified its purpose in developing a plan to recruit and successfully support more diverse members that can bring valuable, new contributions to discussions, deliberations, and decision-making for the organization.

  1. Bylaws can be a powerful DEI tool. Moving DEI intentions into action is key to successfully creating an inclusive boardroom. In addition to developing a plan to use as a playbook, board members can consider incorporating DEI provisions into the organization’s bylaws. Not only will these provisions guide and direct board members, but also provide accountability measures that will increase successful outcomes of these efforts.

Including DEI provisions in bylaws demonstrates that DEI is a core organizational value. NEO Law Group offers specific recommendations of how organizations can accomplish this. One of our favorites is stating the diversity goal from your plan (i.e., greater diversity in representation, lived experience, and perspectives) in your bylaws. A favorite focused on equity is including an equitable compensation provision that all employees should be paid a fair and reasonable wage. A favorite focused on inclusion is adding a Conduct of Meetings provision to allow directors other than the president to chair meetings. A full list of their recommendations can be found here.

To ensure these DEI commitments are reflected in an organization’s approved bylaws, review each section of the current bylaws and determine how they need to be revised to reinforce DEI commitments. Building these commitments into bylaws will provide accountability to organizational leadership in moving to more diverse, equitable, and inclusive board governance.

  1. Board member value should be viewed beyond what they can give or get. Historically, nonprofit organizations have relied on their board for fundraising and, in fact, we have recommended this practice many times over. But when boards set minimums for board member financial contributions and give/get policies, barriers based on a person’s “treasure” are created. At Hedges, we are challenging organizations to let go of the old giving and getting minimums and, instead, encourage individual giving amounts that are “personally meaningful” to each board member.

Organizations with giving minimums or give/get policies for board members should ask themselves what barriers to board diversity and inclusivity are these policies creating? What perspectives, lived experiences, or talents might we be missing on our board because of these policies?

That’s not to say that board members shouldn’t still be involved in fundraising. When training organizations to fundraise, we ask board members to identify a part of the fundraising process that aligns with their preferences and comfort level. Whether it is identifying potential donors, cultivating donor relationships, directly soliciting gifts, or providing donor stewardship, we have found that all board members are able to play a role in fundraising efforts. In this way, an organization acknowledges that a board member’s time and talent are as equally valuable as their treasure.

Creating change takes intentionality and patience, but the need for greater diversity, equity, and inclusion in our boardrooms is urgent. By taking time to figure out the “why,” building DEI commitments into bylaws, and valuing individuals for all that they bring to board membership, boards can lead the way to greater impact within their organization and community.

Erin Hedges is the founder and president of Hedges, an Indianapolis consulting firm that advances social change by strengthening Central Indiana’s philanthropic sector. Hedges is launching Lead with Purpose, a new training series to equip individuals for effective nonprofit board service. More information about Lead with Purpose can be found here.

Aug 24

The Nonprofit Board Chair’s Role in Building Organizational Resiliency

By Sponsor Insight

By Erin Hedges, president and founder, Hedges

As COVID-19 continues to change everything in our world and our communities, nonprofit organizations have stepped up to fill in the gaps and meet the needs of those who have been impacted. During the early stages of the pandemic, many nonprofit organizations were able to secure Paycheck Protection Program (PPP) forgivable loans and receive generous donations from individual donors and philanthropic institutions. These economic boosts enabled nonprofit organizations to increase and expand services to meet the urgent needs in our communities as the pandemic unfolded.

As PPP funding runs out, and donor fatigue settles in, concerns are increasing about the resiliency of nonprofit organizations as they navigate the challenge of fulfilling their missions with such little certainty on the horizon. Strong leadership and strategic thinking at the executive and board levels have never been more important as nonprofits not only strive to sustain through this time, but also build resiliency for the future.

At Hedges, we describe resiliency as an organization’s ability to weather crisis, sharpen focus, adapt to changes in the landscape, and emerge with the capacity to have even greater impact. We believe the responsibility of building resiliency ultimately lies with the board of directors in partnership with executive leadership.

The board chair is central to nonprofit resiliency and has a unique role in leading and influencing others through the COVID-19 crisis. Yet, many are unsure of how and where to focus energies among so many priorities. Here are four areas where board chairs can lead, engage and hold fellow members accountable, and foster organizational resiliency:

  • Evaluate, support, and compensate executive leadership. It is the board chair’s responsibility to ensure the full board is supporting the executive director’s success. At the very least, executive directors are entitled to an annual performance review to gain an understanding of where they are excelling and where they can improve. Too often, this process is lacking, which can leave high-performing executive directors feeling undervalued and low-performing executive directors keeping the organization from reaching its full potential. A strong board chair will lead a formal performance evaluation process, which is the foundation for a collaborative and effective working relationship between the board and executive leadership and ensures the organization has the executive talent needed to thrive. Board chairs seeking resources on this topic can begin here.

    An effective board chair will make it a priority to partner with the executive director. Monthly one-on-one meetings, in which the executive director shares what is going well, where they are feeling challenged, and what support they need, ensures the board chair is in tune with the organization and its leader. If the executive director is not meeting expectations, the board chair has the responsibility to clarify expectations and engage the board in identifying supports and resources that can help the executive director succeed. Professional development opportunities, including coaching, mentoring, and training, are a few examples.

    Additionally, the board should review the executive director’s compensation package to ensure the organization is always able to recruit and retain top talent. The Central Indiana Salary Survey Report, published every two years by Charitable Advisors, is an invaluable resource containing local compensation and benefit data. It can be downloaded here.
  • Be a fundraising champion. The board chair does not need to be a fundraising expert but does need to be a fundraising advocate. A strong board chair educates and influences fellow board members and executive leadership to double down on fundraising efforts now in the interest of the long game. First, the board chair can urge fellow members and the executive director to avoid cutting fundraising expenses as a short-term fix, as it will have long-term consequences. Second, an effective board chair sets the expectation for and executes 100% board giving to the organization. This includes facilitating conversations among board members to determine individual contribution levels or a combined board goal, monitoring board gifts, and making asks of those who have not yet given. Third, the board chair reminds fellow members they are expected to introduce individuals in their networks who may be potential donors. This can be done in a variety of ways and staff can play a facilitating role. Lastly, a strong board chair champions board engagement in stewardship efforts through such activities as donor thank you calls and letters.

    Indianapolis social entrepreneur Jeb Banner, in this article published in the Stanford Social Innovation Review, provides further insight into why every nonprofit board needs fundraising champions.
  • Build operating reserves. The importance of the rainy day fund has become abundantly clear in 2020. According to experts, three months of cash on hand is a bare minimum to safeguard an organization in times of uncertainty. Yet, data shows that 32% of nonprofit organizations have less than three months of operating reserves and 62% have six months or less (2018 State of the Nonprofit Sector Survey, Nonprofit Finance Fund).

    While it can be difficult to secure operating capital above and beyond annual expenses, it is not impossible. A strong board chair will address the need for establishing, restoring, or increasing operating reserves to build short and long-term stability for the organization. Once there is board agreement, a policy should be created and approved to outline appropriate minimum and maximum thresholds, how funds will be invested, and how funds can be used.

    The board chair should encourage the finance and development committees to work in partnership to create a strategy and a timeline to secure unrestricted funds that can be held in reserves, most likely from loyal donors who have demonstrated support to the organization over time. Jill Robisch, vice president and senior business development officer, Nonprofit Services, The National Bank of Indianapolis, encourages nonprofit organizations to hold short-term funds in a liquid fund like a money market account that is governed by a short-term working capital policy.

    Longer-term investments should be guided by the organization’s investment policy statement and held in longer term investments, such as equities and bonds. Robisch said that, over time, organizations should work toward having enough income generated from long-term investments to serve as the organization’s short-term liquid capital. A strong board chair will also hold the organization accountable for staying focused on building the reserve funds in accordance with the policy developed and agreed upon.
  • Make every seat count. As the proverb goes, a chain is only as strong as its weakest link. The same is true for nonprofit boards. Members are recruited with the expectation that they will bring their knowledge, skills, and expertise into the boardroom. And, yet, how many board seats are taken up by individuals who don’t attend meetings or are not meeting board expectations? A strong board chair will make every seat count by enforcing bylaws that call for the removal of members who do not make meeting attendance requirements or are otherwise not fulfilling the expectations of board membership. These conversations should be approached thoughtfully and carefully and provide an opportunity for the member to make a graceful transition from the board, potentially into another volunteer role within the organization with a lesser time commitment. Similar conversations should be had with members as they reach their term limit as determined in the organization’s bylaws.

    Addressing board disengagement and term limits will create room for new board members, presenting an opportunity to deepen the organization’s commitment to diversity, inclusion, and equity at the governance level. A strong board chair will task the board with revisiting the ideal board composition for the organization, ensuring that it is diverse and representative of the community, and make needed adjustments to member recruitment strategies. The board chair also should be responsible for creating a boardroom environment that allows all members to have equal voice. Organizations struggling to diversify their boards or provide an equity culture should seek outside sources, beginning with answering these initial questions from BoardSource.

Nonprofit resiliency is not a buzzword; it is hard work. With board chairs focused on best practices in nonprofit governance, including a willingness to support the executive director and lead others toward shared goals, nonprofits will weather this uncertain time ready for greater impact. This is their time to lead.

Erin Hedges founded Hedges in 2002. The Indianapolis consulting firm is focused on increasing nonprofit capacity and impact. Hedges, who is passionate about board leadership, currently serves as Board Chair for Dove House and the Lilly Family School of Philanthropy Alumni Board. She also is a past Chair for Joy’s House.