subscribe
back issues
reprints
contact us
Wealth in Perspective
Wealth Management
Thought Leaders
Money and Meaning
Passion Investments
Wealth Management Sourcebook
Multifamily Office 2008
Previous Issues Index
/ Home / Editorial / Money & Meaning / Philanthropy /
Best Practices: On the Board
Underperformance Anxiety
Elizabeth Harris
06/01/2006

Mickey Rosenzweig looked forward to beginning his term as the board president of the nonprofit New York Center for Financial Studies last spring. An experienced executive–he is president and CEO of Rosenzweig Financial Services and for years has worked with various nonprofit industry groups and organizations such as the American Cancer Society–he planned some sweeping changes to improve the center’s operations.

Rosenzweig wanted to restructure the organization’s finances, as well as those of two related nonprofits, to make them all more self-sustaining. But despite his extensive financial and board background, he soon realized that he would not be able to build enough support among his fellow board members to pursue the changes he thought were needed. Only a few months after being elected, he resigned, without ever having taken office.

"The other leadership was really opposed to my philosophy, and they were dear friends," Rosenzweig says, "so in the end I had to make a decision to either blow up a friendship or step down. I took the easier route."

Boards play a critical role in the life of any nonprofit, but too often one or more members fall short and hinder or compromise the organization’s mission. It is not uncommon to find one or more directors who fail to contribute enough of their talents or means. Many nonprofits have discovered that the best route around these pitfalls is to choose board members with care.

No issue is more important to a nonprofit than securing financial resources. Charity board members quickly learn the mantra: Give, get or get out. "With some of the seasoned institutions, there’s an entry fee," points out Lewis B. Cullman, founder and former chairman of Cullman Ventures, who along with his wife, Dorothy, serves on the boards of the New York Public Library, Lincoln Center, the American Museum of Natural History, the Museum of Modern Art, the Metropolitan Museum of Art and the New York Botanical Garden.

Board veterans suggest that it is easier to avoid problems relating to this delicate issue before they arise by explaining the board’s expectations to potential members, rather than ejecting underperformers later on. Mark Volpe, the managing director of the Boston Symphony Orchestra, says the stickiest problems arise when board members have not been adequately apprised. "People lose their nerve. You’re asking them to join the board, and you forget to mention there’s a capital campaign coming or the meetings are x number of times," he says. "Communication is critical, and it’s better to do it early as opposed to having those awkward moments later."

Spelling out board responsibilities early also enables potential members to make an informed decision about whether they can commit. Explain what the service entails: attendance at meetings, participation on committees, donations and help with fund-raising, says Tim Seiler, director of the Fund Raising School at Indiana University’s Center on Philanthropy. Seiler is collaborating with BoardSource, a nonprofit that helps charities strengthen their boards, to offer best practices courses for nonprofit executives and board members.

1 | 2 | >>
Printer Friendly Version  Email a Friend


Related Articles
» Sarbanes-Oxymoron
» Directors' Dilemma
» A Free Lunch
» In the Hot Seat
» Outsiders Welcome
 
Get a FREE ISSUE and a FREE GIFT

Simply fill out this form to receive a complimentary issue of Worth and a FREE gift ("The top 25 Questions for Your Private Banker"). If you like the magazine, you’ll pay just $36 for 5 more issues (6 in all). If it’s not for you, you can return your invoice marked "cancel", and owe nothing. The FREE issue and FREE gift are yours to keep.
Name
Address
Canadian orders click here
International orders click here

Unsubscribe from subscription emails click here
 



Family Office Wealth Conference