OUTSOURCING FUNDRAISING 2

TEAMWORK THAT WORKS 4

PLAYING WELL TOGETHER 6

CONSTRUCTING A PARTNERSHIP 8

THAT’S ENTERTAINMENT 14

Insight and Ideas for Nonprofit Governance

Departments

EXECUTIVE’S CORNER 7 RR ASK OUR CONSULTANTS 12BOOKMARK 13 RR A BOARD MEMBER SPEAKS OUT 13

B O A R D M E M B E R®

VOLUME 15 | NUMBER 5 SEPTEMBER/OCTOBER 2006

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AP A R T N E R S H I P

Constructing

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No matter their size or mission,nonprofit organizations need anddeserve boards and staff that canopenly discuss successes andchallenges so that, together, they canhelp the organization be effective.That is the essence of a constructivepartnership. A constructivepartnership, in turn, is an essentialelement of a high-functioning board.

Creating a climate of openness, andthe transparency that accompanies it,is critical to nonprofit organizationalsuccess, especially in an era markedby heightened accountability forperformance and, in many cases,increasedcompetition forresources. Thatclimate dependson a sharedagreement of thedistinctive rolesof the board andthe chiefexecutive and, byextension, staff.With a sharedagreement, theseplayers can takesteps to create the“space” for constructive partnerships— by providing the right informationat the right time, by promoting boardcohesion and candor, and by creatingthe right meeting structure. Bybuilding on a mutual understandingof their respective roles, chiefexecutives and boards can disprovethe belief that “effective governanceby the board of a nonprofit is a rareand unnatural act,” a phrase used byBarbara Taylor, Richard Chait, andTom Holland in their Harvard BusinessReview article (see Resources).

Different roles for differentorganizationsAll constructive partnerships requireagreement on the complementaryroles of board and staff. But the linedistinguishing those roles may bedrawn at very different places fordifferent types of organizations.

For example, a small startup nonprofitorganization with a part-time or singlestaff member needs board memberswho straddle both sides of theboard–staff line, not only working ongovernance and strategy but alsotaking on more operational duties,like accounting, stuffing envelopes fora fundraising mailing, or securingpublicity for an event.

At the other end of the continuum, alarge nonprofit with many full-timestaff would likely draw the line at adifferent place, with board membersfocusing more on governance,strategy, and performance assessment,leaving staff to use their professionalexpertise to manage the day-to-day

operations and implement theapproved program initiatives.

Exactly where the line is drawnbetween board and staffresponsibilities will depend on whatthe organization most needs at itsparticular stage of development. Butwherever it is drawn, the importantthing is that the roles andresponsibilities of board and staff areclearly discussed and agreed upon.Once this foundation is in place,we’ve learned that maintaining andenhancing a constructive partnershiprequires attention to three key areas.

1. Filling the information gapThe first and perhaps most importantcomponent of constructivepartnerships is bridging the inevitableinformation gap that occurs betweenstaff who live and breathe theorganization every day and boardmembers who come togethersporadically for a relatively brief time.To effectively fill that gap, nonprofitstaff need to provide information thatgoes beyond reporting on past eventsand permits the board to contributeto future decision making in a timelymanner. Getting this balance right is aprocess of constant adjustment. Too much information and boardmembers may feel overwhelmed, evenirritated; they may see only trees andmiss the forest. Too little informationand board members may feel that they can’t see the road they’re on orwhether it is even leading to theforest.

In either case, candor is critical tocreating a climate characterized by

ongoingcommitment tounderstand andanalyze whythings went wellor poorly so thatthe organizationcan keepimproving. Acandid framingby staff of thesituation canprovide internalclarity about therelevant issues

and make it easier for board membersto find an entry point into thedecision-making process. At theWallace Foundation, such candidconversations about the strengths andweaknesses of various strategies haveresulted not only in better strategiesdeveloped with board input but alsogreater board engagement andinvestment in our work as a whole.

And don’t underestimate theimportance of communicating withboard members between meetings.Periodic updates on progress and

M. CHRISTINEDeVITAPresidentThe WallaceFoundationNew York, NY

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plans, or requests for advice, keep theboard connected to the organization’swork between meetings.

2. Building board cohesionBecause candor is difficult to achieveand sustain without a climate ofmutual respect, time invested inhelping the board come together as ateam pays big dividends. It isimportant to provide time for boardmembers to get to know one anotherand to have shared experiences. Likemany organizations, Wallaceschedules board dinners the nightbefore a board meeting, often invitingan outside speaker whosecontributions are relevant to the nextday’s discussion. We often includesenior staff, many of whom regularlypresent to the board.

Providing opportunities for the boardto discuss issues privately is also animportant way to build boardcohesion and to reinforce theexpectation that all board membersare active participants at meetings,not just passive recipients of staffreports. Because staff membersgenerally shape the meeting agenda,it’s important for board members to

“own” some meeting time that istheirs alone. At Wallace, the boardmeets in executive session at thebeginning and end of every boardmeeting, once with the chiefexecutive and once without. Thesesessions provide predictable spaceand time for board members to askquestions or raise concerns aboutparticular issues that may needattention. The results of thesediscussions often help shape futuremeeting agendas. In addition, theboard annually discusses its ownperformance, including whether therehas been adequate candor and activeparticipation in board discussions.

3. Creating the right meetingstructureThe third component of constructivepartnerships is ensuring boardmeetings focus on what is mostimportant to the organization’ssuccess so that board time isproductive and the contributions ofboard members are maximized. At theWallace Foundation, our board’s most

important contribution is guidance onkey strategic and performance issues— including the broad program areasin which we invest, the specific goalsand strategies to be used in each area,the timing and duration of ourinitiatives, and our progress inmeeting our mission (see Sidebar).

We plan our meeting agendas toallow ample time for strategic andperformance issues. At our Januarymeeting, we review the progress ofthe past year and plans for thecoming year. We have developed anannual State of the FoundationReport that functions as an internalscorecard for this purpose. For eachof the three other meetings, we do a“deep dive” into one of our threefocus areas, reviewing original goalsand strategies, results to date, lessonslearned, and options for movingforward. The background materialsprepared for these discussions aresent at least a week in advance toensure board members have time toreflect on the issues to be discussed.

TWELVE PRINCIPLES OF GOVERNANCE

THAT POWER EXCEPTIONAL BOARDS

1. Constructive Partnership

2. Mission Driven

3. Strategic Thinking

4. Culture of Inquiry

5. Independent-Mindedness

6. Ethos of Transparency

7. Compliance with Integrity

8. Sustaining Resources

9. Results-Oriented

10. Intentional Board Practices

11. Continuous Learning

12. Revitalization

From The Source: Twelve Principles ofGovernance That Power Exceptional Boards.BoardSource, 2005.

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T H E WA L L AC E F O U N DAT I O N

Our mission is to enable institutions toexpand learning and enrichmentopportunities for all people. We do thisby supporting and sharing effectiveideas and practices.

To achieve our mission, we have threeobjectives:

T Strengthen education leadership toimprove student achievement.

T Improve after-school learningopportunities.

T Build appreciation and demand forthe arts.

At the meeting itself, staffpresentations are limited to generalframing comments, and most of thetime is spent in conversation with theboard, answering questions raisedand listening to various perspectivesexpressed on the issues presented.

It’s important to note that wedeveloped this approach inconsultation with our board as aresult of candid conversation inexecutive session. We all agreed weneeded to provide more time forthinking ahead and reflection —something we observed was difficultwhen meetings were organized solelyaround specific recommendations foraction. Now, we seek to create “space”for discussions with the board aroundthe strategies that will ultimatelydrive the recommendations, whilestill allocating shorter blocks of timefor other updates, reviewing financialperformance, and voting on specificgrants.

Why bother?Building a constructive partnershipbetween board and staff is not easy(and perhaps not common). From thechief executive’s perspective, it takestime to develop the trust that candor

requires, and it takes courage toadmit to a room full of smart boardmembers that things don’t alwaysturn out as planned or that mistakeshave been made. From the board’sperspective, it takes dedication andcommitment to faithfully attendboard meetings and to adequatelyreview board materials in advance.And it requires a real investment oftime and effort for board members tounderstand the issues facing anorganization so they can help developthe right strategies and performancemeasures to ensure success.

But the benefits of creating aconstructive partnership are wellworth the effort. Board members whofeel they are active contributors to theorganization’s success are moreengaged and supportive. They areable to more effectively represent theorganization to various outsidegroups, which often results in greatervisibility and support for theorganization’s work. Recruitmentbecomes easier because new boardcandidates are attracted to the energyand enthusiasm displayed by currentmembers. From the staff’s perspective,the organization’s work isstrengthened through the counsel of

board members. And there is realsatisfaction and confidence inknowing that the strategies beingimplemented have the fullunderstanding and endorsement ofthe board. And, most importantly, theorganization benefits by making fulluse of the contributions of both boardand staff — however the lines aredrawn between the two.

In other words, the actions of bothboard and staff, in partnership,“construct” a more effectiveorganization. And that, in turn,benefits the people across the countrywhose opportunities for education,enrichment, health, and overallquality of life depend in importantpart on the vigor and effectiveness ofthe nonprofit sector.

RESOURCES:

“The New Work of the Nonprofit Board” byBarbara E. Taylor, Richard P. Chait, andThomas P. Holland. Harvard Business Review,September-October 1996.

“Why Boards Go Bad” by Richard P. Chait.Trusteeship, May/June 2006.

The Nonprofit Chief Executive’s Ten BasicResponsibilities by Richard L. Moyers.BoardSource, 2006.