Viewpoints

Board Communication Is The Key To Non-Profit Success

Gerald Archibald

Originally Published In:
ROCHESTER BUSINESS JOURNAL
February 2008
Author: Gerald J. Archibald, CPA

“Wise men talk because they have something to say; fools talk because they have to say something.” --Plato


Zorionak eta Urte Berri On!
If you ever visit France or Spain, be sure to visit Basque country.  Southern France and Northern Spain contain seven provinces that are the heart of the Basque region and its unique people and culture.  Betsy and I had the good fortune to visit and reconnect with some good friends from Great Britain who now have a second home in Southern France, just a 15-minute drive from the Spanish border.  The area is both an interesting and a beautiful region to visit.

While we were there, I learned that the Basques speak a language that is of unknown origin to language experts.  Extensive research has been unable to determine how the Basque language developed with no identifiable origin.  
 
This column provides suggestions in a critical area for success in the tax-exempt sector.  That is, effective board and management communications.  While in France and Spain, there were two defining observations that prompted me to focus on the importance of clear and candid communication.  They were:

1) I was amazed to learn that France and Spain, different cultures and different languages, no longer have any border crossings between the two countries.  Crossing the border from France into Spain was much like traveling between New York and Pennsylvania.

2) The Basque language, due to its unique and uncertain origin, is virtually unintelligible to anyone other than a Basque.  For example, the opening line to this column is Basque for Merry Christmas and Happy New Year.

Our British friends, Richard and Sheila Jefferies, were very gracious in hosting our visit.  Little did they know that their education of the Archibalds regarding the Basque culture would serve as the catalyst for this column. 

Language and the resulting inherent communication problems it creates must be a key focus area for every organization.

Board and management communication in the non-profit sector can be an area that requires continuous attention and nurturing. 

A non-profit organization’s success and its achievement of its mission and vision can be directly attributed to the effectiveness of board and management communications.
To that end objective, the information provided herein represents my approach and recommendations related to achieving the desired goal of candid, clear, and open communication between non-profit board and management team members.

First and foremost, there must be a consistent process and procedure for prompting effective communication within your organization.  I believe that an annual board and management team survey establishes the basic foundation for achieving the primary objective in this area. 

Every board has a certain number of board members who are quite willing to express their opinions on matters and topics affecting the organization.  Frequently, there are just as many, if not more, board members who are reluctant to express their opinions during discussion and debate on these same issues.  Therefore, it is imperative that a board survey tool be utilized for purposes of ensuring that each and every voice and opinion is known.  As you read the following survey questions, think about whether you have a clear understanding of the collective view of your board and management team members related to each answer.

Please be advised that the technology of the Internet has made effective survey techniques as easy as pie.  Go to surveymonkey.com and you will find a free web survey tool that makes the survey process extremely efficient.

The questions which follow are excerpts from the board survey tool we have developed in connection with our non-profit strategic planning processes. 

Every survey should begin with a ranking (high, medium, low) of agency priorities using some or all of the following topics tailored to your situation:

• Need for a management succession plan for the Executive Director position
  
• Effectiveness of Board Committee Structure
  
• Future growth in the organization’s programs, services, and budget size 
  
• Developing effective Board leadership for the future
  
• Information technology needs of the organization
  
• Adequacy of staff salary and benefits
  
• Long range building/space needs for programs and services
  
• Addressing those programs/departments currently generating operating deficits

The following questions expect an answer with respect to a range of opinions from strongly agree to strongly disagree:

• The mission of the organization is being substantially fulfilled by the program and services  currently offered?
  
• The quality of the organization’s programs is excellent?
  
• The organization’s management, through their actions and decisions, are improving the financial  viability of the organization?
  
• The investment reserve funds are adequate to meet the current and future operating needs of   the organization?
  
• The organization’s staff is dedicated to providing outstanding services to the customers that we serve?
  
• I am generally in favor of collaborative service opportunities where the organization will joint venture with other service providers to address unmet service needs?
  
• I am properly informed and knowledgeable regarding the financial operations of the organization?
  
• I believe that the organization invests anappropriate amount of staff time and budget dollars in its fundraising and development efforts?
  
• Our staff salary and benefits program is adequate and competitive with other similar service providers?
  
• I believe that the organization’s administration/management team is doing an excellent job in managing the programs and services we offer?
  
• I am properly informed regarding major issues affecting the organization programs and services.
  
• The overall image of the organization in the community is outstanding?
  
• I believe that the long-range plan for the organization is clear and well documented?
  
• I believe that the Board meetings are an effective use of my time?
  
• I believe that the organization should have a stronger and more active Board committee structure?
  
• I believe the organization is investing appropriate financial resources in staff training and management development programs?
  
• I believe the future level of State and Federal funding for our programs and services will not keep pace with inflation?
  
• I have a sufficient understanding of organization programs and service to effectively discharge my Board responsibilities?
  
• I believe that each Agency program should utilize a standard management reporting format?
  
• I am comfortable with an annual growth rate in the organization budget in excess of 10% per year?
  
• I am generally satisfied that I am free to express my opinion on Board matters and that my input is properly considered?

The Top Ten tips to creating a good survey are:

1. Clearly state your intentions with a survey objective.

2. Include instructions with your survey questionnaire.

3. Don’t ask for personal information unless you need it.

4. Keep the questions short and concise.

5. Ask only one question at a time.

6. Make sure the questions are unbiased.

7. Ask questions that can be answered by your respondents.

8. Order/group questions according to subject.

9. Present the questions in a clean and organized layout.

10. Test the survey questionnaire.

We have a free Board survey template available – contact me at garchibald@bonadio.com for a copy.

Agur eta Zorionak!  (Basque for Good-Bye and Good Luck)

Disclaimer: The Bonadio Group provides the information in Viewpoints for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in Viewpoints are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.