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How Much Do I Get Paid to Be on this Nonprofit Board and Other Questions to Ask

One of the funniest questions I have ever been asked was, "How much money are you paid to be on the board of a nonprofit?" When I explained that nonprofit board members donate both time and money, the woman was aghast. Board membership is an honor, a privilege, a responsibility, and at times, a pain the neck. No one in the corporate world has an abundance of time. Asking the right questions will ensure that you not only don't waste your time, money or talents, but that you are not endangering the well being of those served by the organization by a poor fit between you and the organization.

What you need to know about the board you are thinking of joining?

1.When and where are the meetings?
Some questions are extremely basic, for instance when and where are the meetings. If you have a staff meeting the first Friday of the month, which is the same time the board meets, board membership might not be possible. If you are joining a national board, are the meetings always in the same place. With a local board, are they in an area you feel comfortable visiting alone? Does the meeting location vary? Perhaps the board might want a more central location. Is the board pleased with their meeting site? Can you be of help finding a different location?

2. What is the mission of the agency and what are their challenges?
Does the agency have a clearly defined mission and are you comfortable with all aspects of it? Are there plans to change the mission? Some agencies have "mission creep." They start out to provide a certain service, and as the funding dries up, they offer another. The focus of the agency starts to blur. Look for an agency who knows who they are, what they provide and who the client is, or be prepared to help them come to terms with these questions.

Ask what are the most difficult challenges facing the agency in the next two years. For instance, are they contemplating a capital campaign for a new building? Is there a change in their fund raising capabilities because of the end of a long-term grant? Are there any pending lawsuits? Ask to find any skeletons before you read about them on the front page with your name listed as a board member.

You may want to take a look at both the 501-C3 form and the 990. These are forms filed with the internal revenue service, which will give you a picture of the nonprofits financial health as well as tax status. Beware if they are not readily provided. These are public documents and should be provided immediately.

3. What are the financial expectations for both you and your company?
Talking about money is always a somewhat delicate issue. Getting a straight answer is important. What does the board expect of its members financially? If the answer is rather vague, such as "whatever you think is right" ask more specific questions such as "What is the average board gift? What percentage of the board give an annual gift?" How does the nonprofit earn money? Are you comfortable with their fund raising techniques and their expectations of you? Do they want you to solicit friends and business associates? Turn over client's names? Are there scheduled fund raising events in which you are expected to participate? What is the cost of the tickets? Is this an event you would enjoy participating in? For instance, if there is a regular golf tournament, and you are a non-golfer, would there be another possible p...

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