NONPROFIT BOARD GOVERNANCE IN THE CORONIAL AGE

We’re In This Together. Right?

Andrea McManus, ViTreo Group Inc
June 16 2020

The phrase “We’re In This Together” is being flung about with great abandon during the Coronavirus pandemic. Sometimes the people behind the flinging are sincere, sometimes it’s used as manipulation to get the audience to buy into something and it has nothing to do with the originally intended meaning.

I believe nonprofit boards think that they are in this together with their organizations. But could they be “more in it together” with us?

For the past two months, ViTreo has hosted a bi-monthly Fundraising Ask Anything (FAA) Zoom chat for nonprofits to gather to discuss specific topics and create space for questions and further conversation.

Our focus a few weeks ago was on Board Governance in the Coronial Age. I presented on this (and recently hosted a Webinar for the Association of Fundraising Professionals on the topic). We were fortunate to also have Eva Friesen, President and CEO, Calgary Foundation, Sharilyn Hale, President, Watermark Philanthropic Counsel, Jeff Loomis, Executive Director, Momentum and Sue Tomney, CEO, YW Calgary join us to provide their thoughts on the subject. And we had a sell-out crowd — approximately 70 people from around 48 nonprofit organizations also joined us!

BRINGING THE BOARD ON BOARD

Although fundraising is not a governance responsibility, leadership is. What we as fundraisers and nonprofit organizations need to keep in mind is that we are all experiencing the same fears and uncertainty. Everyone is currently in the same boat — worrying about the future, financial concerns, etc. We need to be just as mindful of this with board members as we are with our donors and other stakeholders. Having said that, it is critical to engage them more fully with our work.

Common Board fears (and some organizational fears)

• Fundraising is uncomfortable and feels like begging

• People are losing their jobs and it is the wrong time to ask

• We don’t want to bother our funders when they are going through so much right now

“Amid the COVID-19 crisis, nonprofit leaders and staff members need help from their board members more than ever. But it can be hard for executives to know how to involve trustees in emergency-response efforts while also ensuring that their organizations stay afloat, supporters stay informed, and fundraising proceeds.”

- The Chronicle of Philanthropy, Engaging Your Board During Covid-19: A Virtual Forum, Lisa Schohl, May 04 2020

NOW IS THE TIME TO TALK WITH THEM

This is an opportunity to more fully engage board members, some of whom are completely disengaged from the actual nonprofit organization. Many of them are successful business owners or executives. We can gain much from their experience in running businesses or managing companies.

How to engage board members:

1. Put them in touch with donors — they can talk to them about why they donate to that specific cause — and it will further cement the relationship between the organization and the donor

2. Engage them in an assessment of programs

3. Seek their insight

4. Request their advice on scenario/contingency planning

5. Ask what worked for board members during the 2009 recession? What did they learn from that?

What to be aware of:

As Eva Friesen, Calgary Foundation CEO said in the FAA:

“Board members are a great support, a sounding board for the CEO, but don’t pull them into decision-making. Watch for mission drift and stay the course. It’s critical to keep the board out of operations. The board’s responsibilities are to protect the public reputation, to guide and to preserve that reputation.”

What to do:

Sharilyn Hale of Watermark Philanthropic Counsel shared her thoughts:

“It’s easy when all is well; to become complacent. The best boards will dig in — this is when strong policy and good practices come into play.

Have weekly calls with your board. Talk to them about what transition looks like. What can we do to evolve and get to the goal posts? Get your board members involved in phoning donors.”

In the case of Momentum, a Calgary nonprofit which lost 10% of its reserves in one month, its Board played a critical role in helping the organization to survive. Executive Director, Jeff Loomis advised that the Momentum Board was essential in developing a reserve fund which helped to offset the loss. As well, it helped with perspective by working with him and the organization on long-term scenario planning to create proactive, not perfect scenarios. The Board also worked with Momentum to consider risk — what is the right level of tolerance. Jeff’s advice was to be transparent with the board but to also understand they have fears around the future as well.

Another guest, Sue Tomney, YW Calgary CEO advised her organization had weekly talks with their Board where they advised on how they were managing risk. They created a COVID-19 dashboard for specific messages around sick employees, fundraising levels during COVID-19, expenses, PPE, etc. The YW Calgary also worked with its Board to understand their insights on what they thought might happen in the next 12 months.

CHARITABLE SECTOR SILVER LINING

As I continue to seek the opportunities during the pandemic, these are some positive ways to work with your boards during the Coronial Age. There will be a rebuilding process as we make our way through to the other side of this:

• Help board members face their fears and perceptions around fundraising

• Take this opportunity to shift the narrative. We need to begin this internally and activate our board.

• Talk about social return on investment as contrasted against financial return on investment

• Dispel the myths (costs of fundraising, overhead, reserves)

• Take this opportunity to align your charitable purpose with business purpose in the rebuilding process

TAKE CHARGE - WE ALL NEED TO BE ALL IN

Just as we want our board members to be in this with us, we also must be bold and lead our board members, our donors and our people. Communicate with them with empathy, clarity, honesty, authenticity, vulnerability. Lean in!

In engaging your board more fully and more broadly in these times, it is important to remember and recognize the distinctions between governance (which only happens within the board collective) and engagement of individual Board members. Don’t take them out of their governance lane.

As the focus of The Provocateur continues to be on providing a space for discussion and for solutions on what’s most important to the charitable sector, over the next few weeks we will be talking about Higher Education.

Stay safe and stay healthy! And engage your boards…

Check out ViTreo's Braintrust as we bring you additional insights into what is and what will be important in philanthropy through our Weekly News Recap and our Podcast.

ABOUT THE AUTHOR

Andrea McManus, Chair, Board of Directors, Partner
ViTreo Group Inc

Andrea McManus is a Partner with ViTreo with over 30 years’ experience in fund development, marketing, sponsorship and nonprofit management. A highly strategic thinker and change maker, Andrea has worked with organizations that span the nonprofit sector with particular focus on building long-term and sustainable capacity.