Board Service—Is this One Right for You?

by James H. Bernard, Jr.

So you’ve been asked to serve on the board of a non-profit. Let’s assume you are in support of the mission and work of the charity (and if you’re not, is this the right group to commit to?). What things should you know or consider before deciding whether or not to accept the offer to serve? The following items are not intended to be an exhaustive list of questions you should ask, but represent some basic information you should have, as you decide:

	Organization. Is the organization a corporation qualified (In good standing) in the state? What do the bylaws and articles of incorporation require? (One board I was asked to serve on years ago didn’t know where those documents were. That’s generally not a good sign unless you’re seeking an organizational challenge). Who are the

	officers and board members? What expertise do they bring to the board? Do you know any current board members? Are there conflict of interest policies in place? Is the staff paid or volunteer? What is the relationship between staff and the board? What roles do they have in the organization? Is there an office or facility? What insurance does the organization have?

	Finances. Look at recent financial statements. Is the organization in at least reasonably good financial shape? What are the organization’s assets and debts? Ask for a copy of the 501(c)(3) letter issued by the IRS. Have all tax returns been timely filed? Who handles the money for the organization, is he or she bonded, and are there adequate financial safeguards in place to minimize theft or fraud? Are there regular audits? If there were any recommendations from the auditor in the last audit, were the recommendations followed?
	Why Serve? Why are you con-sidering the offer? If it’s to get new business, consider whether that’s really likely. Although a board may give you some limited exposure in the community, my observations are that the people who join a board to develop business and aren’t truly there to sup-port the organization’s mission won’t be very dedicated board members. Perhaps they should consider volunteering with an organization to which they are more genuinely committed.
	Your Role. What role do they have in mind for you (accounting, fundraising, legal, marketing, public relations) and is it a role you agree to? When are the board meetings? Are board meetings well run? Do they start and stop in a timely manner? Are there committee or other meetings or funding events you’re expected to attend? What financial commitment is expected from you? Are you expected to be a fundraiser? What do they do for a board orientation? Or is there no orientation and your indoctrination is a baptism by fire? Do they provide D & O (directors and officers) insurance for the board members?

 

The foregoing questions and the information that would be developed are intended to help you have a clearer understanding of the particular charity and its expectations for you, and to help determine if there is a good match between you and the charity. There are numerous books available that deal with service on a board. One book that many people have found useful is “The Board Members Book” by Brian O’Connell, published by the Foundation Center, so you might consult it or other similar resources.

Charitable board work can be extrem-ely satisfying, but only if you’ve picked the right cause and the right organization. And then, only if you assume your responsibilities with your eyes wide open.

 

James H. Bernard, Jr. is a partner at Slagle, Bernard & Gorman. He can be reached by phone at 816.410.4610 or by email at JBernardJr@sbg-law.com.