Carter McNamara is a prolific writer and amazingly knowledgeable about many things including nonprofit organization and Board. Take a moment and read about 10 Myths about Boards.
Posted: 31 Dec 2012 01:42 PM PST
There are numerous myths that seem
to persist about Boards of Directors. Here’s a list of 10 of them.
Myth –The phrase “corporate
Boards” refers to for-profits Boards. It does conventionally, but nonprofit
Boards are Boards of a corporation, too, so they’re both “corporate Boards.”
Myth — A Board of Directors can
delegate its fiduciary accountability to another body, for example, to a
subcommittee. No, courts have held that the entire Board is always
responsible for its fiduciary duties, not a subcommittee.
Myth — The Board Chair is the boss
of the Board. No, if a quorum of the Board members wants the Chair
gone, then he/she is gone.
Myth — Working Boards are immature
Boards. No, many organizations prefer a more hands-on Board.
That’s fine, as long as they’re attending to their fiduciary roles, too.
Myth — To get more attendance by
Board members, have less meetings and bring cookies. No, it’s more
effective to get engaged members if you demand that members attend.
Myth — All Boards should have term
limits. No, in small communities, you’d have to clone people if
you have term limits on every Board.
Myth — The Strategic Planning
Committee should do all of the planning, too. No, the Committee should
be in charge of ensuring a high-quality planning process, but all Board
members should be involved in planning — or in approving the overall Plan.
Myth — Board members are
officially Board members once their names are on the Board minutes or a
roster. No, courts discern a person to be a Board member if there’s
proof that he/she has been acting like a Board member, e.g., attending
meetings, taking part in votes, etc.
Myth — For-profits Boards and
nonprofit Boards are very different. No, most of the nature of their
Board operations are the same, other than for-profits attending to director
compensation, stocks and shareholders (and any rules and regulations for
listed/public companies). Nonprofits attend to volunteers and perhaps
fundraising.
Myth — Strategic planning always
follows the same process. No, the process should be highly customized
to the purpose of the planning, and to the nature of the client.
Also see: McNamara Blogs
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