Another Downside to the Downturn: Struggling to Staff Nonprofit Boards
Just when I thought that the struggling economy couldn’t possibly be blamed for any other nonprofit troubles comes word that it’s having an effect on board recruiting. Crain’s New York Business reported recently that because trustees and directors are expected both to give and to help with fundraising, they are in extremely high demand among nonprofits who need their contributions not just for campaigns but also for operating expenses.
As New York charities lose millions of dollars in donations to the recession, many are desperately seeking additional board members to help keep their organizations solvent. Because most boards require trustees to make a fixed donation, a larger board can mitigate declines in corporate and individual giving.
“There is more competition for funds than ever before,” says Marilyn Machlowitz, a recruiter specializing in nonprofits. “Nonprofits are concerned with how they’re going to meet their financial goals in the next year, and the solution is to add to their boards.”
Talk about not seeing the forest for the trees. Adding to the board may help the bottom line next year, but once finances stabilize and real decisions need to be made, how does a nonprofit handle all of those egos? Among a group that large, how does true vision and leadership emerge? | 501(c)
Au contraire: most nonprofit Boards are too small to represent their communities properly and therefore don’t govern themselves as well as they should. If the economic downtown causes nonprofits to notice that they should expand their Boards of Directors, that may be the one tiny thing to be grateful for. As for managing “all those egos,” it’s no harder to manage 17 than 9 or 11: if you assign people meaningful work and take their contributions (of ideas and energy as well as money) seriously, you’ll be able to “manage” them just fine. Has anyone ever met a nonprofit with too many resources focused on outreach to the community? Outreach is precisely the Board’s job, and the more (Board members/outreach) the merrier.