Nonprofit Boards Should Assess Their Work!

Nonprofit organizations have never been held to the level of accountability that they are today, and those expectations will likely increase in the coming years. That’s why now more than ever it is important for nonprofit Boards to adopt a recurring means of self-assessment. The process will allow for comparisons of best practices, ensure congruence among the board, identify opportunities for additional education, and help surface strategic initiatives to be incorporated in planning.  

In consulting with nonprofits over the last ten years and working with (and for) them for decades, I’ve seen commonalities in the issues they face. Those with the most consequences include:

• A lack of clarity around strategic objectives

• Insufficiency in their performance evaluation

• Surface interaction and very little deep engagement with stakeholders, including board members

• A void in multiple types of planning

• Insufficient staffing and budgets

• Ineffective governance and growth initiatives

Not all nonprofits are dealing with all of these issues, but most will incur the impacts from at least one. Unfortunately, unless there is a consistent assessment process in place, it’s likely the issue(s) will never surface or at least be prioritized.

Some organizations will put off an objective, third-party administered assessment because of the cost. The irony? I often see they are incurring much greater financial impact (it’s simply hidden) by kicking the can down the road. Aligning the board and organization around key initiatives will have lasting positive consequences. So, let’s take a look at the Who, What, When, Where, and Why of a potential board assessment.

Who should be involved?

The Board of Directors carries responsibility for the strategic direction of the organization. As a result, they should be holding themselves accountable with this consistent review of their knowledge and performance.

What does an assessment involve?

Typically, a board assessment will consist of a litany of questions around the organization’s structure, procedures, interactions, and oversight. The questions will generally cover areas such as operations, finance, human resources, and programming. It encourages candid and honest feedback. The answers are reviewed by a neutral third party that can then summarize and share the results. They also guide the board in taking the information to the next level and help form strategic initiatives around the identified priorities.

When should an assessment be conducted?

Most boards will find an assessment to be a vital part of their strategic planning process. However, the proactive boards will conduct an annual assessment to help measure their progress on initiatives and their service to their stakeholders. It is often most beneficial near the beginning of a new fiscal year.

Where should the assessment lead an organization?

I like to share with organizations that embark on the board assessment process that (when used properly) the assessment will never leave them where it found them. It provides an opportunity to attain new levels of appreciation, engagement and service that were previously not available.

Why should a board member care about an assessment?

Since many smaller boards can be self-perpetuating, (friends and colleagues recommend friends and colleagues), there is the risk of missing perspectives and seeing new challenges.  That doesn’t make for the best board, nor does it provide individual growth opportunities. An assessment allows a board member to grasp where they stand relative to other members and their colleagues in other organizations. It ensures they are adopting the best practices and spurring growth in the organization.

Ultimately, individual board members should be comfortable in pursuing change while seeking their best performance and a board assessment enables both.

In its most basic consideration, without conducting an assessment, how will a board know they are operating in an environment where strategic thinking is commonplace, and the board’s efforts are truly impactful? How could they identify shortcomings, and the areas of improvement needed?

Most nonprofits are dealing with a host of issues that can cause them to lose focus and sometimes its donors. Conducting a board assessment advances professionalism, enhances accountability, improves performance, clarifies needs and provides insight into the future direction of the organization. It also demonstrates a commitment to nonprofit governance. Aren’t those reasons enough to embark on the process of conducting a board assessment?