Compensating Board Members

Organizations are formed in response to a great social need, perceived injustice, or emotional response to improving the human condition. The founder of such an organization – the singular voice that moves mountains of paperwork and red tape, convinces donors and supporters to contribute start-up resources – is the same person that inspires others to serve as volunteers and staff, and rises to meet each new day with a fervent passion to establish a better way.

Undoubtedly, when someone is so passionate and dedicated to a cause that they spend countless hours and resources to establish an organization that is devoted to that cause, there is reason to celebrate. Where would we be without visionaries who step forward and provide the leadership necessary to launch such a tremendous endeavor? That entrepreneurial spirit is one of the hallmarks of our society.

Not-for-profit organizations offer a highly effective structure for the alignment of social need and people who want to assist with addressing the need. The founder is the driving force who establishes the structure—some would even say “the marriage”—between need and resources. The founder often assumes the position of executive director, president, or board chair to extend the start-up momentum into true programs and operations.

As the organization reaches a more mature phase—with clients, patrons, staff, volunteers and board members all focused towards mission-centered decisions—the founder can find him/herself in a role that requires ‘follow-ship’ as often, or more often, than leadership. At least, the newer role of the founder is not that of the one with all the vision and all the answers. In fact, many in the organization will view the founder as a daunting individual who stifles, rather than promotes, independent and creative work.

These are signals that the organization has indeed moved towards independence and maturity and, perhaps, away from the intensive leadership of the founder. It is a new phase of organizational growth. This should be embraced, not feared. The most effective organizations, and founders, recognize this as a time for transition that may include hiring a new CEO who will bring fresh, new ideas to some of the lingering problems while infusing independence and creativity to face upcoming issues.

The founder who can step aside while offering full support is giving, once again, very sacrificially to the organization. In fact, many organizations plan for this transition to avoid getting stuck in the ‘founders syndrome’ where others in the organization are reluctant to say or do anything before getting approval, first, from the founder. The founder, in accordance with the board, may phase out their leadership over a period of one or two years. This allows a smooth segue and formal structure to avoid any hiccups or awkward periods.

With appropriate recognition for the founder’s accomplishments the organization can move into an exciting new era of service. Perhaps the organization will create a special place on the board for the Founder, so that they continue to have a voice in the organization. Perhaps the founder is permitted to pursue certain ‘pet projects’ through the group, with a certain number of staff hours assigned to assist him or her. Always recognize the value of the founder as a leader and an inspiration. They should be a touchstone that allows staff and board members to understand the driving force behind the organization’s inception.

So, when is the right time for the founder to step aside? When the organization has reached a point of maturity in programs and operations that the founder can step aside and the organization will continue to grow and prosper. This subjective evaluation is best performed by the founder and the other top leaders of the organization, with objectivity and selfless devotion to the organization. Growth towards optimal, mission-based service is, and always should be, the goal of every non-profit.

For more: CDS Fundraising

Today’s site: YMCA