Building a Team

Nonprofits are required to have a Board of Directors if they want to have tax exempt status. What that Board should look like varies from board to board and from state to state (the law can dictate what a board looks like in some states, it can also dictate the makeup of certain types of nonprofits). For the most part however it is the role of the founding members to decide what the board will look like.

Developing a board is very similar to developing an athletic team, you must have the right players in the right position to accomplish your goal (mission). In order to select this team you must truly know what your mission is. So many boards get caught up in filing for their tax exempt status that they often times determine what the makeup of their board will look like before they have a good understanding of what they are going to do. The first step that is taken by nonprofits is usually to get right to finishing up all of the items that are required by law so they are able to begin operating. One of those first items is creating the organization's Constitution (Articles of Incorporation) and their by-laws. The by-laws of an organization explain to the state and the community how they will operate as an organization. This means determining the size of the board, committee structure, how often the board meets, board limits, etc.

Once each of these things, and only when these things have been determined is when you should  begin to form your board team. When forming this team you must think of what the final board makeup needs to look like. For example if you are a nonprofit offering youth development services your board makeup should be built to support this cause. You should look for individuals with skill set in youth development/education, a board members should probably come from the health field. Most nonprofits try to find a board member that comes from the legal field, financial field (CPA, Banker), business community, as well as other key elements of the organizational setup. This is extremely critical for smaller nonprofits. Typically nonprofits do not have the necessary financial resources to hire professionals for every role an organization requires. It is quite common for board members to act in these positions through their role as a board member.

The reason for this type of diversity on a team allows you to become a multidisciplinary team, with each board member complimenting the other members. If you think about it in terms of sports you have never seen a football team win a Super Bowl with the three best players in a single position. The goal is to distribute the workload across the entire team.

Nonprofits boards understand that diversity is important to the success of the board, but trying to get to this point is always a challenge. The problem usually exists in how the recruiting of new members is being done. Typically nonprofit board do not have a formal recruiting process for new board members. What normally happens is that individual board members will invite the people they know personally, either in business or in their personal life. This is done because the individuals know these members and they trust them. This creates a board of like-minded individuals, narrowing the perspective of the group.

A formal process for board recruitment is necessary for a strong, diverse board. During the process you will identify how many board members are needed and what type of skill sets you are looking for. This will not only help you to avoid bringing in only the people you know, but it will also prevent you from bringing in individuals for one need of the organization. This occurs a lot in nonprofits that are having difficulty raising funds, they will feel that they need people who can simply fund raise. This will lead to a neglect in many areas of the organization. The most dramatic impact will be on the programs of the organization, when the financials are the only concern it becomes the only topic of discussion at board meetings.

The key to building an effective team is to 1) know what the purpose of the organization is before forming. 2) Know how many board members you actually want, and 3) identify the needs of the organization and recruit based upon these needs. If a team is built with individuals with identical skill sets it really isn't a team. The goal is to build with members that compliment the other members, allowing for each one to positively challenge one another.