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.
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