A few years ago, the entire Board of Toronto Goodwill quit en masse. Shortly after, the charity declared bankrupcy. So what can you learn from this disaster? One thing you can do is to take time now to ensure that you have the right people on your charity Board with the right skills. At the time, a Globe and Mail article criticizing the composition of Goodwill's Board noted that, despite the fact the organization derived the bulk of its revenue from retail operations, none of the Board members had retail or supply chain experience.
But if you are a Board member or charity leader - where do you start?
First it is valuable to identify keys areas for your charity. What broad area does your charity serve? Are you a visual arts charity? Are there any visual artists on your Board?
Second it is useful to have appropriate technical skills. It is worth noting that it may be a conflict of interest (really) for a human resources professional, lawyer, or accountant to serve on your Board. Make sure that you have access to those skills. Also make sure that the people you use in these areas have relevant expertise - a mergers & acquisitions lawyer will be less helpful to you if you are a sports charity than a lawyer with expertise in sports law.
Third, it is important to ensure that the community served is represented on the Board. The phrase "nothing about us, without us" has become an important measure for disabilities organizations. This should also apply more widely to other organizations.
Many organization use a matrix to help them identify Board skills they need, including gaps. This handy publication on Board Recruitment, Development, and Assessment from 20 Questions series by Chartered Accountants of Canada is useful. You'll note a sample Board membership competancy matrix in the appendix which is a good way to determine if you have the people you need on your board.
The next step is finding qualified candidates. Altruvest, a Canadian nonprofit that specializes in Board work, has modules on key areas of Board leadership. One they have includes BoardMatch a board recruitment service.
Now is a good time to review the composition of your Board and make sure you have all the skills you need. If you are not sure, then the resources above are a good first step.
Ann Rosenfield, MBA, CFRE has lots of Board experience but is not affiliated in any way with Altruvest or the Chartered Accountants of Canada. She thinks they are super-smart though!
Want to learn more about this subject?
Governing with Soul: How Joy, Courage and Compassion Are Taking Charities to the Next Level by Marjorie Sharpe