A colleague shared this story about the importance of setting clear expectations for board members when they are recruited, checking in with them annually to ensure they understand the expectations, and being willing to let them go if they cannot meet the requirements.

The Unspoken Assumption – Personal Gift

As told by a nonprofit CEO somewhere in the U.S.

When I became CEO of a fairly large nonprofit, I met with every single board member. It was one of the first things I did. One board member stood out. She worked for a corporate partner. She had an impressive profile, terrific energy. She was younger and brought a fresh perspective. She had great connections with her peers. In addition, she was a person of color and reflected the diverse communities we served.

During our meeting, I thanked her for representing her corporation, which was an important partner for us. I said, “I also want to thank you for your support.” She sat up and said, “What do you mean?” and I replied that I was told that the individual board members were also contributing as part of their commitment to the organization. She said, “Well, I donate but not to this organization. My company does that and it is not one of the areas I care most about.” I said, “But you know we ask all of our board members to support our work.” She said, “Nobody said that when I joined the board. I am not going to do that.”

I talked to the Executive Committee. I asked them about board recruitment and whether they told prospective board members that they were expected to make a meaningful personal contribution to the organization. They told me that they did not tell this to prospects. So, I asked them if it was their expectation – that every board member make a personal contribution. They said it was an expectation, that they just did not include it in the discussion up front. It was implied.

Make Sure Board Members Know What Is Expected of Them

Understanding how folks were recruited to the board and what they were told is important. So, next I met with the Governance Committee. Our Governance Committee was responsible for all things board related – recruitment, orientation, retention, annual assessment, review of the bylaws, board engagement. Everything. I wanted to make sure we were clear about what we were asking our board members to do.

We had many discussions. I advocated for clearly asking every board member to make a personally significant personal gift. If they did not have financial means, it could be five dollars or even one dollar. I noted it made them more effective as ambassadors when they could say, “Hey, I believe so much in this organization that I not only serve on the board, but I also made a contribution.” I also told the committee members that some funders want to know what percentage of an organization’s board contributes. Some funders even want to know how much they contribute. Having this as a requirement was necessary to even qualify for, much less be competitive for, some grants.

The Governance Committee decided that the organization would require board members to make a personal gift, even if they represented a corporate partner or another partner that was supporting us. They realized that we needed to communicate this policy with the entire board, that we had to be explicit. So, we sent out multiple communications, explaining the policy and why it was important. We talked about it at board meetings. We created a Board Commitment Form that we asked every board member to sign annually. The form was an effective way to make sure our information on them was accurate. It allowed them to indicate which committee they wanted to serve on. And we explicitly indicated the organization’s expectations of each board member: to attend a certain number of meetings, to serve on a committee, and to make a personal gift.

Make Tough Decisions When Board Members Won’t Comply

Guess what happened? The young woman dug her heels in and said, “I’m not going to do it. I am not going to make a personal contribution.” I went to the Governance Committee and told them what she said. The Chair of the Governance Committee and I agreed to give it another try. We met this board member personally and explained the policy and why it was important. She stopped coming to meetings. She did not make a gift. But she also did not resign. I kept waiting for her to send me a note saying that she was going to resign but she did not.

I went back to the Governance Committee and told them I did not think she was going to resign on her own. I asked them what they were going to do. They discussed this and decided that she could not serve on the board if she was not going to contribute. I wrote her a letter, so we had something on record. In the letter I referenced our conversations and our policy and told her that we had to ask her to leave. I felt horrible too. Because I liked her. She ended up being mad at me and not the other board members.

I think it was the right decision to let her go and to enforce the policy. I understand that when she joined the organization, it was not clear what the expectations were. But the board’s Governance Committee created a policy and took steps to explain it and why it was important.

Assess Board Prospects Up Front

After several more conversations with this board member, it became clear to me that she was not in agreement with the direction the organization was going. She had not said this before. Our policy about giving a personal gift assumed that the individual board member believed in the organization and would be happy to support it. This was not the case. So, this example highlights the importance of the selection process. This woman came on because her company was a partner. Even when a board member represents their employer, you want to make sure they are behind your organization’s vision, mission, and direction.

I was concerned that her company would be unhappy that she was asked to leave the board. But the prior Board Chair, who was still on the board and served on the Governance Committee, was an executive at her company. He was one of the people who made the decision to enforce the policy. And he told me that his company would find someone else.

Engaging with Every Board Member Is Essential

Remember, I was a brand new CEO for this organization. I came into a situation where each individual board member had a different understanding of what was expected of them. I realized I had to engage with each board member to determine what they thought they were expected to do, to inform them of what the expectations actually were, and then to remind them annually – by having them sign a commitment form.

This young woman was the only one who left. There were others who had not been told they were expected to contribute. I remember one in particular who served on several other boards as well. She said, “Well I was not told about a personal gift. I already support so many other organizations.” I emphasized why it was important that she give – to get grants, to be a leader, but also to make an impact in the community. I told her it was not just about the amount she gave but the message it sent to others. She totally got it and ended up being one of our most generous donors.

 In the end we had 100% participation from the board.

Lessons Learned

• Be clear at the outset with board members about your expectations and why they are important.
• When a board member represents their employer, ensure that they also believe in your organization’s mission and direction.
• Let somebody go if they are not going to meet your expectations whether attending board meetings, serving on a committee, or making a gift. It is basic stuff that everybody should understand but sometimes they need a reminder.