Philanthropy Front and Center-Atlanta

Save the Date - Nonprofit Issues Forum Dec. 4

Mark your calendars now for the first in a series of discussions about nonprofit issues. On Friday, December 4, Dennis Young, director of the Nonprofit Studies Program, Andrew Young School of Policy Studies at Georgia State University, will lead a discussion entitled Governing Nonprofit Organizations: Should Stakeholders Be in Charge?

Join us at the Andrew Young School of Policy Studies building, 7th floor, for coffee and conversation at 9:30 am. Dr. Young will speak at 10:00 am, and a panel of experts will respond with discussion starting at 11:00 am.

This event is cosponsored by Alston + Bird, the Andrew Young School of Policy Studies at Georgia State University, the Foundation Center-Atlanta, the Southeastern Council of Foundations, United Way of Metropolitan Atlanta, and Woodruff Arts Center.

Kayron Bearden, Reference Librarian, Foundation Center-Atlanta

How Many Board Members Should I Have?

We get this question a lot from visitors who are just starting their nonprofits. Last month, we co-presented two programs on nonprofit boards in which the speakers had some compelling key points:

Terri Theisen, founder of Theisen Consulting, advised at Oct. 14's program, “Nonprofits 101—Part 2: Developing Your Board”:

• Even though Georgia law (O.C.G.A. § 14-3-803) states a minimum of one board member, IRS and funders prefer to see five or more. In fact, Ms. Theisen recommends a relatively large board, about 15-20 or so. Although there are some who have said that large boards are less effective, a recent study found no correlation between board size and effectiveness.

• Larger boards must have sound infrastructure in place, i.e., committeees such as Executive (your officers), Finance, Audit, Fundraising, Board Development (nominating).

• Set clear expectations for board members -- for example, attendance at board meetings, service on at least one committee, financial contributions required, term limits for board service -- and stick to them when recruiting new board members.

Reynold Levy, president of Lincoln Center for the Performing Arts, titled his Oct. 16 talk, Repeat After Me: “It’s the Board of Directors, Stupid”. This was the Third Annual 2008 UPS Lecture on Nonprofit Leadership, Governance and Economic Stewardship, hosted by Georgia State University's Nonprofit Studies Program. Dr. Levy advised:

• Nonprofits should have big boards to represent diverse perspectives and to help you publicize your work and raise funds. Lincoln Center has 65 board members.

• Set high expectations for your board members regarding minimum contribution or fundraising goals, committee work, and other duties for each director. Each new member of the Lincoln Center board must agree to contribute or raise a minimum of $250,000 each year to remain on the board.

• Don't set term limits for your board members. Those who are engaged in your work will continue to be an asset, and those who do not meet your high expectations will leave anyway. Some of the Lincoln Center directors have been on the board for 30 years or more.

• When asked if he would give smaller nonprofits the same advice about board size and expectations, Dr. Levy responded yes. The scale might be different. For instance, for some nonprofits a gift of $5,000 or $50,000 might be the equivalent of Lincoln Center’s $250,000 required gift.

For more details about Dr. Levy's perspective on boards, you might want to read his latest book, Yours for the Asking: An Indispensable Guide to Fundraising and Management, which is available for use in our library (call number 703 LEV).

Is one right and the other wrong? No. Both of them make valid points. You have to examine your own organization –- where it is, where you want to go with it –- and look at the options for getting there. You and your board can then make an informed decision about board size, composition, and expectations for your organization.
 
Seeking more info on board development?

• Try a Subject search for "Board members" in our library catalog, Catalog of Nonprofit Literature

• Visit our library and browse the shelves under call number 610, or ask a staffer for help

• Check out BoardSource, a nonprofit "dedicated to increasing the effectiveness of nonprofit organizations by strengthening their boards of directors".

Pattie Johnson, Director, and Kayron Bearden, Reference Librarian, Foundation Center-Atlanta

An Advisory Board: Your New Best Friend

The Foundation Center – Atlanta’s Advisory Board met Wednesday, and I got so many good ideas to follow-up on that I spent a good part of Thursday writing up the advice, recommendations, tips, and suggestions they provided.  I didn't want to forget a thing.

The Foundation Center – Atlanta has had an advisory board since the field office was established in the early ‘90s.  My board consists of leaders in the philanthropic and nonprofit sector who represent the various audiences we serve.  They provide advice and guidance to me and serve as the Center's ambassadors in the larger community.  Their efforts on our behalf have been instrumental to the success of the Center’s work in the Southeast.  Work-wise, they are my "best friends."

Does your non-profit have an advisory board? If so, please share your experiences and observations by commenting on this blog.  If not, you may want to consider one.

One caveat, you need to be clear about what an advisory board is and is not.  Ideally, an advisory board is a group of people who are truly interested in your organization and have a strong desire to see it successfully pursue its mission.  The advisory board provides a structured way for you and the “advisers” to periodically hold open, frank discussions, sharing ideas, expertise and concerns about the work of the organization and the community and climate in which it exists.  It offers guidance rather than governance.  An advisory board does not have the legal and fiduciary responsibilities that a board of directors has, but the advisory board/committee/council can be a valuable complement to your governing board.  The Knowledge Center at BoardSource can provide further information and explanation about the differences between advisory and governing boards. 

If you decide your organization needs a "new best friend," you will want to learn more about advisory boards. I recommend reading BoardSource’s 2004 pamphlet Advisory Councils by Nancy Axelrod for the comprehensiveness of the information in a compact package (i.e., it's short).  I believe it is still available for purchase from BoardSource. It is in the library at the Foundation Center – Atlanta.  Come see us and read it.  You can discover other books and articles about boards – advisory and governing –  by searching the Center’s Catalog of Nonprofit Literature. 

Pattie Johnson, Director, Atlanta office