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Best Board Books #7 - The Nonprofit Board Answer Book

By John Pearson

You have questions—here are 85 answers from another must-have governance book in this series on the best board books.

Book #7: The Nonprofit Board Answer Book: A Practical Guide for Board Members and Chief Executives (3rd Edition), published by BoardSource  (Order from Amazon)

Peter Drucker, the father of modern management, said, “My greatest strength as a consultant is to be ignorant and ask a few questions.”

“Behind every good answer lies a good question,” says BoardSource in the introduction to the third edition of this jam-packed resource. Now with 85 questions and answers, it’s a must-have tool for both new and veteran board members as you inspire them to be life-long governance learners. Suggestion: bring it to every board meeting—and pass it around the room. It will be irresistible to your board members in their search for proof texts!

When you scan the table of contents, dozens of relevant questions will jump off the page—and tempt you to read the crisp, well-written two- to four-page answers. Examples:

Part One: Basic Board Functions
1. What are the basic responsibilities of a nonprofit board?
5. What is the board’s role in strategic planning?
7. What is the board’s role in fundraising?
9. How does the board avoid the extremes of “rubber-stamping” and micromanaging?

Part Two: Board Structure
13. What is the best size for our board?
19. What is the role of the board chair?
21. How should we select our board officers?

Part Three: Board Member Selection and Development
23. How can we recruit active, involved board members?
25. What is the chief executive’s role in board recruitment?
32. What should we do about uninvolved board members?

Part Four: Board and Committee Meetings
41. How can we encourage debate while promoting civility in the boardroom?
42. What is the purpose of a board retreat?
44. How should staff members participate in board and committee meetings?

Part Five: The Board’s Role as a Fiduciary
52. What are the signs of financial distress in an organization?
54. What policies and practices should we adopt to manage conflicts of interest?
57. Why should every board member make an annual monetary contribution?
58. How can we develop board members’ fundraising skills?
59. How can we generate revenue beyond fundraising?

Part Six: Board-Staff Relations
64. What is the ideal relationship between the board chair and the chief executive?
67. How should we evaluate the chief executive?
68. How do we set fair compensation for the chief executive and the staff?
70. What is the board’s role in relation to the staff?
72. How can we facilitate the end of a chief executive’s employment?

Part Seven: Organizational Change
75. What is the typical lifecycle for a nonprofit organization?
76. How do we ensure that the organization thrives after the founders depart?

The first edition, written by Robert Andringa and Ted Engstrom (1916-2006), built the reliable rails for the second and third editions. This is an excellent resource.

BOARD DISCUSSION: Question 77 asks, “When should an organization consider revising its mission statement?” (Not this year! We just spent $5,000 framing it on the reception wall!) BoardSource recommends you review the mission statement’s relevance annually and “discuss whether new laws, dramatic economic or environmental shifts, other organizations entering the picture or other changes may justify a revision.” When is the last time we have seriously reviewed our mission statement?

MORE RESOURCES: Check out the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit Boardroom, by Dan Busby and John Pearson, including Lesson 39, “Invest ’10 Minutes for Governance’ in Every Board Meeting<.”

 

This article was originally posted on the “Governance of Christ-Centered Organizations” blog, hosted by ECFA.
John Pearson, a board governance consultant and author, was ECFA’s governance blogger from 2011 to 2020.
© 2021, ECFA and John Pearson. All rights reserved.


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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