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So you want to work for a nonprofit organization?
By June Bradham
Nonprofit Development
Q. I have been in the business world for many years but am thinking about going to work in a nonprofit. What changes should I expect?
A. In my experience, some business leaders underestimate the unique challenges of managing nonprofit organizations.
In a recent article in the Stanford Social Innovation Review, Charleston’s own Philip Lader, chairman of the communications services firm WPP Group and former White House deputy chief of staff, was interviewed as a leader who has run both nonprofit and for-profit entities. He spoke of the lack of respect from those who do not understand the nonprofit sector.
“When I was a college president,” Lader said, “I sought to initiate curriculum reform, establish certain cultural requirements and apply for admission to the NCAA, all of which required faculty consent. Contrary to a corporate setting, I would stand before the faculty senate and plead for their support. Yet the board and media would ascribe to me the credit or blame for the institution’s progress.
“It reminds me of what someone said life as an ambassador is like,” added Lader, who served as U.S. ambassador to the United Kingdom from 1997 to 2001. “There you are at the helm of the great ship, with everyone scurrying about. Only after about four months of steering the wheel do you realize that it is not connected to the rudder. Everyone is saluting you and saying ‘aye aye,’ (and then) they go below to steer the ship themselves. In many nonprofits, that is genuinely the case.”
Nonprofit leaders generally have less authority than their for-profit counterparts, partly because they have to honor the disparate concerns of many more groups, each with a legitimate stake in the organization’s mission and activities. This diversity of opinion often starts with the board of directors.
In the nonprofit arena, board members often come to the boardroom with different agendas and goals. More often in for-profit organizations, shareholder value drives a common bond between board members and staff.
So in my experience, people who have gone over to nonprofit work report that it has been the most challenging and rewarding of their careers.
Q. I am on a local board and I really want to make a difference. In meetings, we cover information that we could have read ahead of time. How can I help the board spend more time on strategic issues?
A. The Governance Institute states that it is the best practice for boards of directors to devote 60% to 70% of meeting time to strategy and policy issues. According to their recent survey results, however, the majority of boards do not follow a strategic board agenda.
In Corporate DevelopMint’s work with boards, we find a very high correlation between the amount of time spent discussing strategy and the board’s overall performance. The more strategic the board agenda, the better the corporate governance and the more valuable the board becomes to the organization.
A few modifications for you to suggest:
Organize a committee on directors. This committee is responsible for strategic planning and can make it a priority to examine meeting effectiveness.
Use a consent agenda. This consists of items that can be approved in a single vote by the full board if there are no questions or concerns. This requires directors to thoroughly review management reports prior to the meeting, meaning more meeting time can be spent on strategic issues.
Develop a strategic plan and stick to it. Design the future of the organization by considering what is best for those who use the organization, those who govern and manage it and those who financially support it. Once the plan is done, don’t lose focus.
Create free time. Schedule “unscheduled” time on the agenda for more meaningful discussions. Often this can happen in work-sessions or retreats.
Q. We need three new board members for our organization. How do we decide who are the right people?
A. First, look for people who share the core values of the organization. For a hospital foundation, look for someone whose life has been saved there and who tells everyone they see about the great care they had. Second, look for people whom you do not have to motivate to do the work of the organization. When talking with potential candidates, listen for cues the person is self-motivated and self-disciplined. Third, look for people who do what they say they will do.
June Bradham is the president of Corporate DevelopMint, a full-service fundraising consulting firm with offices in Charleston, Greenville, Blowing Rock, N.C., and Memphis, Tenn. Send questions to cdm@corporatedevelopmint.com.
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