Posted on: Sunday, December 26, 2004

NONPROFITS
Director-board teamwork key

By Kelvin Taketa

There's an executive director of a local charity who has made the same list of New Year's resolutions for the past several years.

First on the list is to take a vacation that is more than two days long. Second is to make more effective use of her organization's board of directors.

The need for more support from their board is a common concern for many nonprofit executive directors.

In a 2001 national study conducted in conjunction with the Hawai'i Community Foundation, data showed that while boards provide strong personal support to their executives, executive directors want more help from their boards with essential management functions, such as fund-raising and financial oversight.

Board members, however, are often uncertain about their role and how to be the most helpful. Sometimes board members can get overwhelmed with too much volunteer work and responsibility. Other times they can feel left out or ignored.

The unique and multifaceted relationship between the board of a nonprofit agency and its executive director is perhaps the most important relationship leading to organizational success.

Oftentimes, the board is the strategic point of action for executive retention. A colleague of mine compares it to two partners in a skating competition. Each side can either bring out the best in the other or prevent the other from performing well.

Since the responsibility of forming effective partnerships is best shared between the board and executive director, here are some ideas on how both sides can work more effectively together in 2005:

I First, it's important for the board and executive director to recognize the two fundamental types of roles that nonprofit boards have — governance and support. On one hand, the board, as a formal entity, governs the organization's affairs and represents the interests of the community. At the same time, board members individually support the organization by volunteering, raising money and providing advice.

For example, in regard to fund-raising, the board, in its governing role, is responsible for making sure that there is a sensible plan in place to fund the organization, and for monitoring its progress. But in the support role, board members also help carry out the plan as individual volunteers, usually taking direction from staff.

I Second, the lines of communication should always be kept open. In order to lessen the amount of frustration and confusion for both, be sure to clarify expectations, decision-making and how both sides plan to hold each other accountable.

I Third, acknowledge the interdependence between the executive director, board and staff. For board members, make the executive director feel comfortable to share both good news and bad, and establish a way to work together on a regular basis. In addition, get to know some of the staff and make sure that staff knows you.

I Last, the right mix of people on the board makes a big difference. Each board member brings skills and strengths that can benefit an organization, especially a smaller one. Executive directors should seek board members who compliment their own skills, and who excel in key functions such as finance, marketing, human resources, law and real estate.

While most New Year's resolutions end up going by the wayside, nonprofits cannot afford to waver in their resolve to strengthen their organizations.

In the coming year, the challenge is to focus within the organization in order to better serve the community. Increasing the effectiveness between boards and the executive director is a critically important step.

Kelvin H. Taketa is president and CEO of the Hawai'i Community Foundation. E-mail him at kelvin@hcf-hawaii.org.