When Nonprofit Board Members Leave Their Business Sense At the Office

I feel fortunate to work for a nonprofit organization where I have the highest regard, without exception, for our Board members and the manner in which they approach The Community Foundation’s business. Their strong commitment to excellence and their enthusiasm for our mission are fundamental to the foundation’s success.

However, as one who has the opportunity to observe many Virginia nonprofits I am amazed at how cavalierly some business people approach their nonprofit board duties of obedience, care and loyalty. Would they ever dream of missing half their company’s board meetings? Would they show up for a company board meeting without studying the meeting materials, yet opine freely? Would they openly advocate for their personal interests over those of the company and expect to get away with it?

I don’t think so. Yet, I am struck when I see this kind of behavior on nonprofit boards. Perhaps those who criticize nonprofits for “not running like a business” should first turn their attention to the behavior of board members.

Consider some real-life examples I have seen through the years at several Virginia-based nonprofits:

A nonprofit board member who serves for personal gain, demonstrated by his request for personal contact information so he can solicit other board members for insurance business;

Nonprofit board members who obtain their organization’s business for architectural, legal or investment management services without insisting on proper procurement procedures to ensure fairness and appropriateness;

Nonprofit board members who have so little regard for the importance of staff excellence as to advocate for the hiring of friends who lack the qualifications necessary for success.

Yes, in many ways a successful nonprofit should run like a business. Efficiency, accountability and transparency should be shared operating standards. Conflict of interest policies should be adopted and enforced by a Governance Committee, and a whistleblower policy should be in place. Board members should have enthusiasm for the organization’s mission and should advocate for operating within the highest ethical standards.

Come to think of it, some businesses don’t perform very well. As Pogo said, “We have met the enemy, and he is us.”

Cross-posted from Bobby's Blog at the Community Foundation Serving Richmond and Central Virginia.

Robert Thalhimer