The Board Works for the Stakeholders

Posted in strategic plan / board of directors / stakeholders



The Board Works for the Stakeholders

The nominations committee is hard at work looking for new board members. But there are differing opinions. Some committee members want to look for accountants, and lawyers, and doctors to try and build a board of business professionals. Other committee members want to look to the non-profit’s clients and users and try to build a board that represents a diverse selection of stakeholders.

Think for a moment about your non-profit. Which side do you fall on?

Let’s consider who the board works for.

Board members are accountable to the membership and/or stakeholders. Not all non-profits have members, but they all have stakeholders. Don’t confuse stakeholders with shareholders. Stakeholders are the people who have an interest in the activities of the non-profit. They might be clients, members, users, supporters, and so on.

Board members are accountable to the membership and/or stakeholders.

When creating a strategic plan for the non-profit, the board will draw from the wants and needs of those members and stakeholders. That strategic plan is later turned into an operations plan, and after the operating year is over, the board will report the impact the non-profit made through its work. That will give the members and stakeholder a sense of how well their wants and needs were met. If the members and stakeholder feel their wants and needs were not adequately represented or the impact of the work of the non-profit was weak, there is a strong chance those board members won’t be re-elected.

Because the board works for the stakeholders.

So, then when a volunteer holds a board position, they are representing the stakeholders. While they can’t realistically speak on behalf of all the non-profit’s members and stakeholders, they can speak with more knowledge when they are a stakeholder. With that in mind, the nominations committee will usually seek candidates that represent a diverse selection of stakeholders to stay in alignment with the work of the non-profit.

When a non-profit wants to build a board of directors that is representative of the stakeholders, it is essential that there is a strong understanding of exactly WHO those stakeholders are. It sounds easy, but it can be challenging, especially if there is a long list of talented candidates.

When a non-profit wants to build a board of directors that is representative of the stakeholders, it is essential that there is a strong understanding of exactly WHO those stakeholders are.

To jump-start your thinking about finding the right board member, here’s a little quiz.

Pretend you are on the nominations committee. Which nominee would you choose?

Your non-profit is a stray cat rescue group. One nominee works as a local dog walker and is a regular donor to your organization. Another nominee is an accountant with a long history handling non-profit audits, she has no pets. Who do you choose?

Your non-profit works with people who face financial struggles. One nominee is a loan officer for the local bank, a good family man who lives in an affluent part of town. Another nominee uses the services of the non-profit to learn more about budgeting and paying off debt, he has no kids and lives with his mom. Who do you choose?

OK, let’s make it a little harder. Your non-profit helps develop youth sport. One nominee works as the youth education coordinator for the local art gallery. Another nominee operates several for-profit sporting goods stores. Who do you choose?

For each example, who did you pick as the best potential nominee? It isn’t easy? But here’s the big question, who do you think will best represent the stakeholders of the non-profit?

When a non-profit wants to build a board that will lead the organization and write a strategic plan that represents the wants and needs of stakeholders, it needs to look within that pool of stakeholders to find board members.

Thanks for taking the time to read my ideas. My mission is to take the mystery out of running a small non-profit. If you know someone who needs to read this, why not grab the link, and share it with them. Let’s work together to find the right board members for our non-profits.

(Hint, hint… is it you? Maybe you need to put your hand up to become a board member.)

-Christie

Hi, I'm Christie Saas, former board member, current Executive Director, and non-profit volunteer. I remember well, those early years when I lacked the training, the confidence, and the work-life balance to focus on becoming the best non-profit leader I could be.

Fast-forward past many bumps in the road, lessons learned, and you’ll find me still in the trenches, but a little wiser, a little calmer, and a whole lot happier. I love my work and I want to help you love yours too.

I created ChristieSaas.com to give you tools, tips, and templates to remove the mystery of learning to run a small non-profit. If you’re a brand-new non-profit leader, or a little more seasoned, someone who’s looking to make a meaningful contribution and still have time for a full life away from the job, you’re in the right place.

© Christie Saas 2022 All Rights Reserved

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