Get on board


Most people recognize that volunteering to mentor a young person through the Boys and Girls Clubs or hammering nails for Habitat for Humanity yields both personal satisfaction and a tangible contribution to the community. Interestingly, serving on the board of directors of a nonprofit organization is a particularly meaningful volunteer service that research indicates benefits the individual and his employer as well as the nonprofit.

According to a Deloitte & Touche USA LLP survey released last summer, employed Americans overwhelmingly agree that volunteering advances them professionally and gives a positive career boost. Nearly three-quarters of those who serve on a nonprofit board of directors strongly agreed that volunteering advanced their leadership skills. James H. Quigley, CEO of Deloitte & Touche says, “What we have seen at Deloitte … is that there is no question volunteering is an outstanding professional development tool because of the real experience it provides.”

The “real experience” Quigley cites includes making certain the organization they govern is well managed, has a clear strategy, and is accountable. Thus choosing the director to lead a nonprofit becomes a critical responsibility for board members.

Smart Business talked with Jim Chambers, vice president of TNS Partners – whose principal focus is finding great leaders for nonprofit organizations – about the benefits to corporations and individuals of volunteering, and their responsibility for selecting the most qualified person to direct the nonprofit.

Why should employees serve on the boards of nonprofits?
Our work with corporate leaders and nonprofit boards has yielded much insight on the value executives perceive from their volunteer service. People today want to work for companies that take their social responsibilities seriously and care about their communities. When a company’s employees join and participate on nonprofit boards, the company sends a clear signal that this service is valued, thereby attracting prospective employees and serving as a retention tool for current staff. But employees benefit as well, by strengthening their decision making skills, enhancing their public identification, deepening personal relationships with other community and corporate leaders, and gaining satisfaction from being able to ‘make a difference.’

How important is it to get strong, effective leaders on the boards of nonprofits?
The importance cannot be underestimated. The directors of a nonprofit serve in a governance and fiduciary capacity, and become communications and fundraising resources for the organization. They also play a significant role in selecting key personnel such as senior staff. The passion they bring, coupled with their expertise and willingness to participate, is essential for well-run nonprofits.

What is the directors’ role in selecting the staff of a nonprofit?
One of the directors’ most significant responsibilities is to make sure that the right staff is in place at the nonprofit. Typically, where there is a senior staff opening or a need to upgrade a position, directors will form a search committee that often will engage an executive search specialist to recruit suitable candidates for the opening.

The focus needs to be on criteria directly related to the nonprofit’s mission, rather than on the typical objectives of a private company. The difference is subtle, but important. In basic terms, a company’s general manager is ‘incentivized’ to maximize profits, whereas a nonprofit executive director must fulfill the organization’s fundamental service purpose while exercising fiscal responsibility and running ‘in the black.’ Directors have to understand the mission and culture of a nonprofit, and be committed to both.

Who has the primary responsibility in the search for a nonprofit executive director?Ultimately, the directors control the search and the selection. They hire the executive search firm, spell out the criteria for the position, and oversee the execution of the search. The retained firm must understand the culture of the nonprofit and be diligent when identifying prospects and communicating organization insights to candidates — while assessing the optimum fit between prospect and nonprofit. It’s a clich, but it’s true: client and search firm must partner to attract the strongest possible executive to the organization.

Hiring an effective executive in the nonprofit arena is just as essential as recruiting ‘A’ talent to a for-profit organization. Superb nonprofit executives provide the vision and strategic leadership, lean and accountable financial management, and the facility to knit together a myriad of fundraising sources with a passion for the mission. A leader who comes up short in any of these areas will weaken the nonprofit’s ability to meet its goals, concurrently diminishing the benefits a board leader and his corporation derive from this service.

Any final observations?
Great American companies – such as IBM, DeLoitte & Touche, EDS and American Airlines — clearly understand their nonprofit involvement is a winning investment, paying dividends to their communities, their employees and their shareholders. Board participation yields an even greater return – and enormous personal satisfaction.

JIM CHAMBERS is vice president of TNS Partners. Reach him at (214) 369-3565 or [email protected]