At various stages in their lives, a number of community minded citizens feel that they have something to offer their community as a volunteer. They may be approached by a friend or a neighbour, they make seek out volunteer opportunities, or they may be offered the opportunity to volunteer through a colleague. 

This is often how individuals are recruited to serve on a board of directors of not-for-profit organizations.  They are usually told “It will only take a few hours a month of your time.” 

Individuals who are contemplating offering their services to serve on boards of directors should ask a number of questions before making any commitment including but not limited to:

-        What do I know about Governance in the not-for-profit sector?

-        What skills and expertise does this agency require in its governance structure?

-        Can I contribute any of these skills or required expertise? What would my value added be?

-        Why does this type of volunteering appeal to me?

-        Who else is on the board?  How were they recruited?

-        What do I know about the agency’s history, its community reputation?

The demands and expectations of not-for-profit boards of directors have changed dramatically over the last 10 years.  It is not good enough to simply want to offer a few hours of one’s time by being a member of a board; this commitment goes hand in hand with many serious expectations. 

A former board member once said to me that the reason she became involved with a particular community agency was to offer some of her time to those in need – maybe to assist in fund raising.  The agency immediately offered her a position on the board of directors.  What she did not know was that the agency was in serious trouble – financial and otherwise. She was not prepared for the challenges she faced. She braved it out for two years and finally left the board not having contributed what she felt the agency needed.  She learned a very important lesson but felt frustrated and vulnerable in the end.

Susan Bihun

Contemporary models of non-profit policy governance are all clear on one issue - the Executive Director is the only employee who is hired by and answers to the Board of Directors. Ensuring that an organization has the right Executive Director – someone who is competent to run the day to day operations, can engage effectively with the Board in their strategy and governance work, and move the organization forward in accordance with its mission and values – can present a Board with a real recruiting challenge at the best of times. Now consider the difficulty when the talent pool shrinks dramatically over the next 10 years as the Baby Boomers retire. Most sectors have not even begun to think through the implications of that massive retirement and the majority of organizations have no idea where their next ED will come from. It’s time for the Boards of Directors to step up to the task of ensuring that their organizations are contributing to the development of the next generation of Executive Directors – if not for themselves, then to replenish the pool. 

Jane Rounthwaite

You’ve got a business to run.  You’re busy.  Everything is running smoothly.  As the Chair of the Board (or the CEO, Executive Director, or Board member), you’re feeling pretty confident that everything is under control.  No need to complicate life with Board meetings, Committees, policies and endless reporting. 

Or is there?  By ignoring the importance of good governance, have you left yourself open to risks that could pose a threat to your business?  Or to you and your directors personally?  Do you know the extent of your personal liability?

Does your Board meet regularly?  If not, you are probably not in compliance with your  ByLaw.  Are you in compliance with Bill 168?  If not, you are placing your organization and your Directors at risk of lawsuits and fines.  (Do you know what Bill 168 is?)  Are your policies sufficiently rigorous to withstand a lawsuit?  Are your Directors sufficiently well informed so as not to be held personally liable in the event of legal action?

But it’s not just about avoiding costly lawsuits.  Good governance also contributes to the bottom line – it builds social, human and financial capital in your organization.. 

Good corporate governance is not just for big business.  In fact, one could argue that it’s more important for smaller organizations, who can gain tremendous advantages from the effective use of their Boards and Directors.

Melodie Zarzeczny