The board of directors of a not-for-profit can be characterized in several ways depending on the intent of those who choose the board members. This intent may seem obvious for any one board, but there’s actually a choice between several options. Wise is the CEO or board president who can identify and transition to the proper level.
What boards need includes an ability to handle fiduciary responsibilities, set direction, think strategically, and hold the leader accountable. This will include a fairly good understanding of the organization and how it actually works beyond whatever reports may be provided. It includes the ability to stay focused on the mission and to honestly address issues of leadership, of integrity, and of facing the day when coasting becomes decline.
Normal Boards
The Celebrity Board. Aiming to engage high-profile public figures will give your not-for-profit a good image and is a worthy goal. If celebrities characterize a board, however, it’s not likely to carry out its essential functions.
The Donor Board. Not-for-profits have an unending need for donors, and a large board of donors acknowledges and, for some, even rewards their donations. There may be some excellent board members in this group, but a donor board, by its very nature, is unlikely to focus on the essentials.
The Board of Hammers. We all admire hardworking people, and not-for-profits attract them as both employees and volunteers. When we see someone so completely dedicated, it’s easy to assume they will make a good board member. Maybe ‘good with a hammer’ does not translate into ‘excellence at the essential board functions.’
The Board of Talents: Each member is a role player: the attorney, the finance person, the government official or liaison. This board works well. The question here is who recruits the members? If it’s the CEO, then their loyalty will tend to follow. If not, there can be some fragmentation as the CEO is much more of a focal point than the board chair who may rotate often…and not be sharp on details between meetings.
The Board of Team Members: This is like the fine board of talents, but with less role-playing and more cohesion. Many of the board members have the ability to serve on an executive committee that does its homework and has a sense of ownership. Again, this is like the board of talents but with a focus on teamwork over talent.
Specialty Boards
The Founding Board. They may be full of zeal without much idea of how to function to get things organized and done. They almost immediately need to discover their weaknesses and work hard (and fast) to fill those slots. Finding a board president who is competent in organization is an essential step.
The Interim Board: Whether it’s a legal problem, crisis, a long gap between CEOs, the need to fire the CEO, or even the need to terminate the NFP, there are times that boards must deal with important and often unpleasant seasons in the life of the NFP. This requires a board that can function well without meetings that run until midnight three times a month. The board chair is central here.
The Search Board: Seeking a new CEO is very difficult, especially if the former CEO has been dismissed or quit with a bad attitude. Who wants either the job of CEO or board member then? But it has to be done.
The incompetent board member. No board recruits incompetent board members, but it happens. That does not mean they are not celebrities, donors, or hammers; it means they seem incapable of focusing on essential board functions. These board members are usually a surprise and should be removed individually and quietly at the end of their first term.