Growth of a Board: a Secret Sauce or a Recipe for Success.

A secret sauce? Or a recipe for success?

Both! While it is easy to look for a new ingredient to build an effective board, it's also important to remember that a well-crafted board development plan is a recipe for success. Over my years in assisting nonprofit organizations grow and succeed, I have found that many boards are comprised of good friends, colleagues, and well-intentioned individuals who share a passion for the mission of the nonprofit. And these members are a wonderful complement to the executive committee and officers of the organization. 

Executive Directors, by their very nature, are to lead the organizations according to the plans laid out by the board of directors. However, as every nonprofit has different needs and personnel chemistry, it's important to build upon a solid, proven business foundation. Every successful business and nonprofit has these 5 business experts on their board of directors or at least as close confidants to the Executive Director. They are:

1. An accountant, preferably a CPA
2. An attorney, preferably one who is aligned with your industry
3. A banker, 
4. An Insurance Agent
5. A financial planner

For added measure, I’ll include 2 other individuals to build a deeper awareness and context for boardroom discussions.

1. A significant vendor to the organization- be mindful of the conflict of interest
2. An industry expert in the field/mission of the organization with years of experience.

These individuals represent industries that drive the greatest concerns that pose opportunities and risk exposure to a business. Everyone listed above, when paired with a passion for your mission, can provide immeasurable benefit to the safety and soundness of the organization and contribute to a prized management team. Collectively, this group alone represents thousands of dollars each month in personalized consulting services to the professional development of the executive director, as well as the supporting leadership team.

These members also provide tremendous resources to fund development, networking, and succession planning. One of the greatest exposures that face nonprofits is succession planning. Whether it’s the replacement of a board member, a key employee, or the next new funder, I believe you will find many of the answers to your biggest concerns are around the board table. You will undoubtedly find that your board members will experience their greatest rewards in assisting your organization when their skills are utilized, minds are challenged, and their business influence benefits the growth of the organization.

Stay tuned, in my next contribution, we will discuss blind spots on your board and how to address them.

John Bennett
SVP Non-Profit Banking and Business Development