oh my board.....

The rural resource gap is mirrored in a number of other rural gaps, or divides. Rural nonprofits are much less savvy at creating or influencing policy (something Kellogg has been addressing now for several years),then there's the gap in the workforce (see my previous post), and the gap in access to academic research resources. However, the governance gap is the most obvious to me in my daily work. While non-rural nonprofit boards all over the country are seemingly much more on top of their responsibilities, in NM we seem to think that governance is insignificant to an organization’s health.

Over the last 18 months no less than three large nonprofit community organizations in Southwest New Mexico experienced a Board of Directors erupting into conflict over the departure of the executive staff person. While each of these conflicts had their own causes and characteristics, together they are a symptom of one ailment: Local nonprofit boards ill-prepared to fulfill their duties. Two organizations now have seemingly stabilized, but one lost all of its government contracts and is now defunct. These conflicts were not healthy processes leading to stronger organizations. They left deep scars on individual relationships, resulted in loss of staff, and left the community with a perception of incompetence and needless in-fighting.

And many of the other boards in the area are not exactly collecting laurels….some more observations from the last few months: a board going below the number of directors set in the by-laws, another board either ignoring or somehow missing the fact staff that have been committing Medicaid fraud for a number of years, (this organization is on its way out, too) and many other boards watching idly as their staff struggles with dramatically shrinking resources as a result of the recession.

And finally, despite a wealth of information available on the new IRS Form 990, and its implications for nonprofit governance, not one area board (that I know if) is gearing up for a thorough review of their organization’s 2008 Form 990, due for most organizations in November.

Oh,…let’s mention the other side of it too: Executives who are condoning and enabling weak boards. I understand the temptation here, and how it is more convenient to run the show without the directors breathing down your neck. It’ll bite you in the butt at some point though. Guaranteed. I also see executives with good intentions, but no understanding of what it means to work for a board. They, along with their directors, should attend the next “Basic Roles and Responsibilities of NP Boards” training in the area.

I also worry that the recent local board conflicts discourage our community members from serving on the boards of crucial community organizations. Serving on a board can be a fulfilling, educational and rewarding way to volunteer for your community. Especially younger people underestimate how much this service adds to their resume, and how much they can learn: from leadership to financial management, supervision and teamwork, fundraising and policy, all are important workplace skills.

So, how can erupting and dysfunctional boards be avoided? Directors serving on boards may ask themselves: Are we as individuals and as a group prepared to guide this organization through an executive transition? Do we have the knowledge and leadership skills to be guardians of the mission in such times? Are we ready to put loyalty to the organization before our own egos, ideas and interests? And are we engaged enough to work with the executive (whether incoming or outgoing), supporting and supervising him or her? Are we ready to put in the extra hours needed to revise the organizational budget and make the needed decisions to steer the organization through the recession?

In times of economic crisis we cannot afford community nonprofits to fail those most vulnerable residents who are depending on their services. People serving on boards must recognize their responsibility, hone their skills, or get off the board.