Have you ever been in a situation where the board has made a decision that you think is very, very wrong, and will have severe negative consequences for the organization? Or where you think an important decision has been railroaded through?
As a board member myself and something of a contrarian, I’ve found myself in these situations from time to time over the years. For example, on the board of an organization with a sizable financial deficit, I found myself and one other board member losing a 17 – 2 vote to take funds from the organization’s endowment for current operating expenses. In CompassPoint’s consulting work to nonprofits, we see more serious cases, too, such as ones where board members suspect illegal activity, or a takeover of the organization by a few very aggressive (and often new) board members.
It’s important to remember that reasonable people can disagree on important issues. The following situations may give you some food for thought if an occasion that goes well beyond a reasonable disagreement were to arise for you.
Q: The board has just voted to repair our playground structures rather than replace them, but I believe strongly that repairs won’t do and some child may be hurt. What can I do?
Consider asking the board for an independent, expert evaluation of the situation, perhaps by a play equipment specialist. Such an evaluation will bring expert, objective information to the decision. If they won’t do that, or if they choose to ignore a report that indicates the structures are dangerous, at least make sure that your “no” vote is recorded in the minutes or record of the meeting. Later, if a child is unfortunately hurt and a lawsuit is brought against the organization, you will not be liable if your vote by name has been recorded. After the vote, simply say, “Please put my name into the minutes as having voted NO on this motion.” When the minutes are issued, check to be sure it has been recorded properly.
Q: The board I’m on is about to make a bad decision. Although the last two years have been very tight financially, they refuse to make any cuts to the expenses. But they don’t want to do anything different in fundraising either! If we have another bad year, I’m afraid we won’t be able to pay our bills.
Call the board chair and express your concerns. But if you really expect that the decision will go another way, write a letter to the board that explains your reasons for voting against the budget that has been proposed. Bring this letter to the meeting at which the vote will be taken, and ask to read your letter aloud and have it entered into the official minutes. You may be outvoted, but your reasoning is in the permanent record, and those who did not attend the board meeting will be able to understand your point of view. Many years from now, someone reading the minutes may also find your comments important and informative.
Q: I’ve just been voted off the board of a nonprofit because I’ve been asking too many questions about the finances. I think the board president and the executive director are embezzling money. What can I do?
A first step might be writing a letter explaining your concerns and send it separately to each board member and to the executive director. Ask them to respond to you by a certain date. You can also contact the auditor (if the organization has a CPA audit) to ask for clarification or feedback on your concerns. If these steps still leave you feeling that criminal activities are taking place, you can write a letter to a few of the organization’s key funders and supporters, but be aware that such a step is likely to create a large uproar that could end up with your becoming accused of slander or libel. Your final recourse is to bring the charges to the Attorney General in your state. That office is responsible for overseeing nonprofit organizations incorporated within the state; your local state legislator may also be helpful in making sure there is an investigation.
Finally, be sure that you disentangle yourself from the organization in other ways, such as having yourself removed as an authorized signer on the nonprofit’s bank account.
Q: I’m still angry and disappointed over a decision the board has made. What can I do?
Once a decision has been made, don’t keep bringing it up again or try to take your case to others. For example, if the board has just adopted a budget that you think is unrealistically optimistic, don’t continue the argument by trying to convince staff or others that the decision should be overturned. If you feel that other board members understand your point of view but still disagree with you, AND you feel that you could not open-heartedly work within that decision, consider resigning from the board and state your reasons clearly in a letter to the board. If however, you can reluctantly live with the decision, make your disagreements clear, but also make clear that you will work with the decision.
Reprinted with permission from the Board Cafe, a free newsletter for members of nonprofit boards of directors, copyright CompassPoint Nonprofit Services. For free fax or e-mail subscriptions to the Board Cafe, please contact the Board Cafe, c/o CompassPoint Nonprofit Services, 706 Mission St., 5th Floor, San Francisco, CA 94103; 415-541-9000; or www.compasspoint.org.
Custom Development Solutions, Inc. (CDS) is among the most sought after fundraising consulting firms specializing in the strategic planning and tactical execution of capital campaigns for non-profits throughout the United States and Canada. If you have a fundraising question, please call CDS at 800-761-3833 or send an email to firstname.lastname@example.org.