5 minute read
Many financial advisors and insurance agents give back to the community. They often ascend to the board of directors (or Trustees) of the organization. Agents and advisors are often Type A personalities. They see an objective, set a goal, and devise a plan to reach it. They often look around and see some fellow volunteers on the board appear to do nothing. What can you do?
Having “do nothing” board members is not always a bad thing. If you give it some thought, you might realize “do nothing” means they are not doing what you think they should be, which is what you are doing. You might be short sighted.
One of the maxims of nonprofit board membership is “give, get or get off.” This ties into the logic the board is an extension of the development department. They are meant to help with fundraising. They should be ambassadors in the local community. If the “do nothing” board member writes big checks personally or solicit their friends for contributions, they are pulling their weight.
Another maxim of nonprofit board membership concerns inviting people to serve. Often, they possess at least one of three characteristics. They can write big checks themselves. They can get others to write checks. Their name conveys prestige and attracts money. Catherine, Princess of Wales is a patron of 20 organizations. Diana, Princess of Wales was a patron of 100+ charities. Everyone does not need to be a worker bee. They can provide support in other ways.
But your zombie board member is not a member of a royal family or a major donor. What can you do? Be aware when you set rules, they must apply to all board members.
1. Kick them upstairs. Your organization might set up an advisory council. They meet once or twice a year. The staff and officers attend. They are asked their opinions. They offer advice. The House of Lords comes to mind, although they are a more serious body with serious responsibilities.
Advantage: They still have “bragging rights” but do not have responsibilities. You keep them connected to the organization as ongoing donors.
2. Set term limits. This might allow them to serve a couple of back to back terms, then step down for at least a year or a term. Officers might be exempt.
Advantage: Once they cycle off, they need to be invited back in order to rejoin. While off the board, the really active former members might still sit on committees. Some inactive members might choose to stay off.
3. Introduce board dues. All of your board members are logically paid-up members of the organization. The board dues might incorporate tickets to fundraisers and events. It might simply represent financial support.
Advantage: Some zombie board members don’t provide financial support. This changes that. You might have an “either/or” feature if they cannot afford to provide financial support but support the mission in other tangible ways.
4. Interview every board member each year. Perhaps the board has an orientation meeting, laying out the objectives for the year and the areas where the group needs volunteer or financial support.
Advantage: Each board member is asked if they would like to continue serving. They are also asked where they would like to contribute their time and talents.
5. Assign every board member to a committee. In addition to attending board meetings, they are also required to be active on a specific project.
Advantage: As a board member, they might see themselves in an advisory role, offering their opinions. On a committee, they need to help with a project and deliver results.
6. Require reasonably continuous board meeting attendance. Some board members never show up. A rule could be put into place saying if you miss three or four consecutive board meetings, you are assumed to be stepping off the board.
Advantage: This might give the zombie board member the opportunity to step down gracefully. It addresses the issue of chronic no shows. Members could still attend via Zoom.
7. Give them a free pass. Some people did a lot years ago. They represent a store of knowledge, the organization’s collective memory. Asking them to step off the board might be similar to divorcing a loyal spouse. It’s something you don’t want to do.
Advantage: If you are a financial advisor, you likely have a few clients who have been with you since you started in the business. They might not do lots of business now, but you are respectful they gave you business when you got started and contributed to your success. You treat them as valued clients today. That is the same logic.
There are ways to tactfully address the zombie board member issue without hurting anyone’s feelings or losing a major donor.
Disclosures:
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance. All examples are hypothetical and are for illustrative purposes only.
Information contained in the materials included is believed to be from reliable sources, but no representations or guarantees are made as to the accuracy or completeness of information. This document is provided for information purposes only and should not be considered as investment advice.
Bryce Sanders is the president of Perceptive Business Solutions Inc.. Dunham & Associates Investment Counsel, Inc. and Perceptive Business Solutions Inc. are not affiliated companies.