I’m on board with that!

By Steve Shaner

“Hello professor Shaner, thanks for agreeing to talk to me.” After several minutes of catching up and reminiscing with my amazing former student, and now a consummate consumer behavioral science professional, she said,

“I would like to be seated as a board member with some businesses and organizations. What do I have to do to make that happen?”

I rattled off several off-the-top of my head thoughts, but later that got me to thinking about the board member selection processes.

Being seated as a board member for a business or organization is a badge of honor for some, and a daunting responsibility for others. If you want to make a significant contribution to the purpose and goals of an organization, becoming a board member can put you on the front line of the direction and decisions being made. Keep in mind there is a big difference in nonprofit organizations than for profit companies. They operate so, so differently.

I used to own a multimedia communications company. When I was asked by people with whom I just met, what I did for a living, I often responded with my tongue firmly planted in my cheek, smile and quip, “I own a nonprofit company… It’s not supposed to be that way, but unfortunately it is.”

For Profits Boards
To be a board member of a for profit company usually means the business is publicly traded, and board membership is often tied to the number of shares you may hold in the business. Board members are selected by the shareholders with each share being one vote. If you own the most shares, you win every vote. Elon Musk was put on the board of Twitter because, while he did not own a majority of shares in Twitter, he owned more shares than anybody else. Then he proceeded to buy up the rest of the shares. So, if you want to be a board member of a big company, buy all the shares you can!

Non publicly traded, for profit companies, if they even have a board of directors, are usually a family-owned business and the family makes up the board. Or, there are financial partners that own the business and ARE the board. Most of the time they have no need for, or don’t want any outside board members.

Nonprofits Boards
The primary roles of a board member for most nonprofit organizations are to give direction, guidance, wise council, and accountability to an operations team, and to have the organization’s function and mission carried out with fiduciary integrity, efficiency, and legality. Professional (or experiential) knowledge, and fundraising, are two of the most needed contributions that board members must bring to the table.

Nonprofit organizations primarily operate on donations, membership dues, or grants from foundations and agencies that award the monies to the organization for specific purposes. To be a board member of a nonprofit board member, choose an organization that you feel compassionately about their mission and introduce yourself in one of two ways, simply –

1. Make a donation of money. To really get their attention make a large donation! Or,
2. Volunteer your time, your network connections, or your professional expertise the organization may need.

A one-time contribution of any of these options may not get you an invitation to be seated on their board, but the larger contribution (again, of any of the options) is more likely to put you on their radar for board membership.

It has been said that the role of a board member of a nonprofit is to follow the rule of 3G’s. That is to GIVE, GET others to give, or GO. Be a member that is supporting the mission with your heart AND your wallet. Some board members can give a huge contribution of experience, networking, or leadership. So much so that they are an obvious choice to be seated on the board, even without a large financial contribution of their own.

Most nonprofit board members are chosen from donors, volunteers, or recommendations by other members due to their potential contributions.

A lot of nonprofit boards also have advisory boards. That is a sub-group that has been selected and put together by the executive director to help with some specific projects on an as needed basis. Advisory board members are selected by the executive director without the need for board authorization. Many board members are chosen from advisory members who have demonstrated exemplary efforts.

Seating full board members, while may be suggested by the executive director, is a process that should be conducted by the board itself, and the board president or chairman should be leading that process. Many think that the executive director selecting his or her board is at best a bit awkward, (like an employee hiring their own boss), and at worst a conflict of interest.

If the board is functioning properly, the president or chairman of the board should be the point person to recruit new board members, or he/she will appoint a committee to do the recruiting. At such time that somebody is selected for nomination, a process of vetting and exploration is led by the president, but a final decision would be made by a vote of the entire board of directors.

The Selection Process: (a sample)
The board member nominating committee is made up of the president, the vice-president and the immediate past president if they are still on the board. And of course, the executive director needs to be a part of the process as well. Here is the process that I have successfully used;

• We ask every board member to prayerfully consider a worthy candidate and bring that name to the attention of one of the committee members. Tell us why they would be a good fit.
• Someone from the nominating committee would initiate the conversation with the nominated.
• Upon approval of the committee, move forward by having the candidate conference call or Zoom with the entire board.
• The board members would then vote on the nominee to be seated or not. In the affirmative, the president would make the offer for the candidate to be seated on the board.

Finally, ask yourself, “Why do I want to be seated on a board of directors?” Helping others, whether financially or in other ways, is more fulfilling and beneficial than pursuing money.

In Luke‬ 9:25 Jesus once said, “What good is it for someone to gain the whole world, and yet lose or forfeit their very self?”‬‬