I’m on board with that!
By Steve Shaner
15 April 2024
Stories
“Hello professor Shaner, thanks for agreeing to talk to me.” After several minutes of catching up and reminiscing with my amazing former student of mine, 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 the organization becoming a board member can put you on the front line of the direction and practice of the decisions being made. Keep in mind there is a big difference in non-profit organizations than for-profit companies. They operate 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 non-profit company… It’s not supposed to be that way, but unfortunately it is.”
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SubscribeFor-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 family-owned businesses 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.
Non-Profits Boards
The primary roles of a board member for most non-profit organizations are to give direction, guidance, wise council, and accountability to an operations team, 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.
Non-profit 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 non-profit board member, choose an organization that you feel compassionately about their mission and introduce yourself in one of two ways, simply –
- Make a donation of money. To really get their attention make a large donation! Or,
- Volunteer your time, your network connections or your professional expertise the organization may need.
However, a one-time contribution of any of these options may not get you an invitation, 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 non profit 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.
Almost all board members in non-profit organizations comes from either donors, volunteers, or recommendations from other board members, because they think you can make one of the aforementioned contributions.
A lot of non-profit 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. That being said, many board members are then selected from the advisory board members that have shown an exemplary effort in helping the cause.
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 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 used successfully;
- 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?” I firmly believe that making a contribution of the heart in a manner that helps other people, whether it be financially or otherwise, is so much more satisfying and even profitable to your life than chasing the next dollar blowing down the road.
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?”
