Every Nonprofit is an Act of Hope

Today, I attended a discussion led by Jane Kendall, founder and president of the North Carolina Center for Nonprofits. She gave us some great tips on what to look for when reviewing potential grantees. Even better, I thought, she gave us some things to keep in mind when deciding whether or not to serve on the board of a nonprofit. (Events like this are one benefit of being a member of the Women's Impact Fund. It sponsors "Lunch & Learns" and "Wine & Wisdoms.")

First, make sure that the organization gives you a written list of your responsibilities as a board member. Don't accept "it won't be much" as a description. A nonprofit should have a list of responsibilities for the board as a whole, and some organizations may have lists of individual responsibilities, as well (if they have a very defined board that looks for specific skill sets or representation from each board member). The list should include helping to raise resources, although that can be defined in different ways (in kind donations, making "the ask," writing thank you notes). If that is not on the list, they don't ask enough of their board members and you should be suspicious. Also, make sure there are terms and term limits.

Second, you should decide how passionate you are about the issue that this nonprofit addresses. As a board member, you should expect to spend between 5 and 20 hours a week on board matters (again, any less and the nonprofit isn't using its board efficiently). Most nonprofits expect its board members to put the needs of the nonprofit right behind self, family, and work on their priority list. Do you care enough about this issue to do that?

Third, make sure that the nonprofit has regular evaluation of staff, board, and mission. Also ensure that the nonprofit has regular financial oversight by an accountant familiar with nonprofit finance and has access to a lawyer (either paid or pro bono).

Jane also suggested asking these questions of a nonprofit:

• What are you looking for from me? What talent, viewpoint, resources do you expect from me? For example, if you have a job in finance and you are looking to expand your world, do you want to be on a board that needs you to specialize in financial matters? Or, would you feel comfortable being "the female voice" or "the minority voice" on the board?
• What are you, the nonprofit, struggling with right now? What are your challenges? All nonprofits have challenges, but if its challenges are with compliance, ethics, or accountability, make sure you know what you are getting into.
• Call up current board members and ask them about their experience on the board. Ask them the first two questions to see what they say.

Finally, a few unrelated nuggets of wisdom from Jane:

• 8 out of 10 fundraising dollars come from individuals, who are the most stable base of support.
  
• Understand that administrative costs have increased dramatically as legal and accounting requirements for nonprofits have increased. Make sure you understand WHY the administrative costs are high.
  
• Don't just look for a mission statement from a nonprofit. Discover what their desired impact is and what it looks like.
• A nonprofit should be participating in the public debate on the issue they work with. They should be sharing with other groups and engaging people outside their "bubble."

*If you are a woman and interested in learning more about philanthropy in Charlotte, I highly recommend joining the Women's Impact Fund. Your commitment is $1200/year for 5 years. Each year, the Women's Impact Fund awards high-impact grants ranging from $40,000 to $100,000 in five different areas: arts & culture, education, health, human services, and the environment. Grants awarded in May 2009 totaled $409,000. You can be as involved as you choose to be.

To Do: Be an informed donor. Know more about the organizations you support financially and with your time.