In trainings for nonprofit board members, I often point out that boards have just one very critical role – to ensure the organization’s future. The way boards do that is through good governance and fundraising. Of course, my board trainings typically focus on the role of the board in fundraising, but good governance is an essential element required for fundraising to be successful. An organization that is well run, where the board provides critical oversight to management – including upholding their fiduciary responsibility – helps build trust with donors which ultimately leads to financial support.
Early in my consulting career, I took on a contract with the Fort Pitt Society of the Daughters of the American Revolution, the owners and caretakers of the oldest structure in the city of Pittsburgh, the Fort Pitt Block House. In 2014 the Block House was celebrating its 250th anniversary, and the Fort Pitt Society hired me to help them raise the funding for needed preservation and restoration work as well as to help leverage their 250th anniversary for awareness building and fundraising. The work involved the necessary infrastructure building to support ongoing and sustainable fundraising. For me it wasn’t just about the 250th anniversary; it was about ensuring the Block House stood for the next 250 years. As a native Pittsburgher, I was proud to be a part of this exciting and historic project and wanted it to be successful for both the short and long term.
With the help of a few dedicated board members and a highly talented curator, we were successful in raising the money needed, completing the necessary preservation work and hosting many highly publicized and well-received celebratory events. After my contract ended, however, I watched from afar as much of the work we had done to build internal infrastructure was neglected. Then, this past summer, I read in the news that the person who was acting in the treasurer role for the board had stolen more than $250,000 of the organization’s funds meant to operate and preserve the Block House. Worse, it was discovered that the stealing had started back in 2018 and continued, unnoticed, until this past year. Where was the rest of the board during that time? Was no one paying attention to the organization’s finances?
This is a mistake of negligence, not malice, on the part of all the other board members. But when one accepts the role as a board member of a nonprofit organization, the responsibility must be taken seriously. Board members need to pay attention, ask questions and seek professional advice when the answers don’t make sense. This is a crime that could have been avoided if just one board member had asked a question.
The future of a historic structure has been put in jeopardy, and the trust of donors and the general public has been lost. In the case of the Block House, no lives were put in danger, but nonprofit organizations provide vital human and social services where negligence on the part of the board could impact many community members negatively.
To ensure the governance function of the board is upheld and done so without bias, nonprofit executive directors should not be involved in the recruitment and selection of board members. There is too great a risk – intentional or not – that they will seed the board with friends who will do nothing more than provide encouragement.
If you are asked to accept a board position, don’t do it just because a friend asks or you want to pad your resume or, worse yet, because nobody else will step up. Take it because you care passionately about the mission of the organization, and you are willing to commit the time, attention and personal resources needed to ensure the organization’s future.
I hope that every volunteer serving on a nonprofit board sees this as a cautionary tale. If you aren’t already, begin to take your responsibility as a board member more seriously. If you don’t have the time to devote or the interest, step down; you are doing the organization a disservice by continuing to hold a seat on the board.
Please, let’s give the role of nonprofit board membership the respect it deserves.
Excellent cautionary tale! And sad too.
This is sad to learn. Where were the auditors, the daily/monthly checks and balances? Often, too much power is afforded those “in charge.” Well written article, Thank You.