Balancing the Mission Checkbook

Nonprofit board members are asking what they should do – specifically to help organizations navigate the economic mess. BoardSource recently published Facing the Financial Crisis: 10 Smart Things Your Board Can Do Now. The article offers a solid, strategic perspective for boards. I have some supplemental words of advice for each individual board members – three steps for board members to consider in a downturn.

1. Step out

Step out of the familiar and comfortable role of supporter and cheerleader.

Now is the time to ask important questions about impact, effectiveness, and entrenched practices. Board members can often bring the outside viewpoint required to ask the right “why” and “what if” questions.

Some of the most important questions to ask right now are about budget assumptions. Any significant revenue number in the budget needs to have a good plan and rationale, not a wish and a prayer

2. Step back

Step back and let the staff do their work.

I have seen boards get carried away generating ideas for new reports, analysis, and research without considering how much time it would take the director and staff to complete the work required to follow through on the ideas. The board chair is the moderator of this balancing act, making sure that every new task suggested by the board is weighed against other priorities and internal capacity.

I urge particular caution for board members who suggest that the nonprofit start a new way of raising funds. If you’ve never hosted a fundraising event, or carried out a significant individual donor campaign, this might not be the time to divert staff time and effort. Remember that each type of income is essentially a new business.

3. Step off

Step off of the board if you do not have the time or energy to work hard for the next two years.

This is not going to be easy and nonprofits need to have the right people on the board. It’s nothing personal, but it’s a good time to ask yourself if you can commit to this organization.