Nonprofit Board Crisis :: Why Nonprofit Boards Have Lower Standards

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Why Nonprofit Boards Have Lower Standards

by mikeb on Fri 07 Apr 2006 10:00 AM EDT | Permanent Link | Cosmos

Nonprofit boards are willing to lower their standards (for outcomes and exec performance) because:

They don't really own their nonprofit

They don't get any tangible returns (like compensation for their time, expertise and connections)

They don't always understand the details

They only spend about 25-35 hours a year with this particular demand

They often have lots of competing demands outside of this one demand

The result: they accept lower standards than they would if none of these conditions true.

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Re: Why Nonprofit Boards Have Lower Standards

by Anonymous on Mon 10 Apr 2006 10:23 PM EDT | Permanent Link

note: some of these same items pertain to board members of large corporations as well. Except you could include that these board members of for-profits receive compensation and benefits from the CEOs they supposedly oversee. (see Richard Grasso for a case example)

Ray

Re: Why Nonprofit Boards Have Lower Standards

by Anonymous on Mon 10 Apr 2006 10:26 PM EDT | Permanent Link

Thanks for sharing. I read your article on the web site and agree with the mediocrity and "nice" behavior on many boards. Thursday night I saw a retired bank senior manager at a fundraiser and he was very frustrated that now he has the time to be active in his community but the BOD's he has joined do not address strategic issues but get bogged down in minutia. This makes the FSW BOD and Committee structure an unusual non-profit and a good role model for others. Regards, Ellen

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My mission: to change the world one nonprofit at a time. I fix broken nonprofits with a focus on resolving nonprofit board/exec relationships. I also help nonprofit boards and staff figure out where they want their organization to be in the future and focus on the four columns of a nonprofit: program, management and operations, governance and sustainability. If you would like to know more about me and my firm, please visit my web site: www.brodyweiserburns.com - Mike Burns

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