If you’re a business leader, you’re probably involved in your community. Serving on a nonprofit board is a great way to share your time and talent. Perhaps someone asked you to join a board. Don’t feel obligated to say “yes” on the spot. Take a beat and gather information to make sure it’s a good fit for both sides.
Ask to schedule a meeting rather than accepting immediately. Before that meeting, ask yourself: Do I WANT to serve this nonprofit? If you’re not passionate about the mission, staying engaged will be hard. If it’s not the right fit, politely thank them and decline — it’s better to be honest up front than sorry later.
If you’re interested, come to the meeting prepared with questions.
Here are questions to ask about board service:
- Why are you interested in me as a board member?
- What would my role be on the board — director or officer?
- What is the length of the board term (1 year, 2 years, 3 years)?
- Does the board have committees? If so, what are they?
- How many committees does each board member serve on?
- Is this a working board or a governing board?
- Working boards are hands-on and often involved in day-to-day tasks, including fundraising; these typically occur in startup or smaller organizations with limited staff.
- Governing boards are common in more mature organizations and focus on strategy and oversight; these usually have a paid executive director or CEO and other staff.
- Does the organization expect a financial commitment from board members (a give-or-get minimum)?
- How often does the board (and committees) meet, and how long are the meetings?
- What is the average monthly time commitment for a regular board member? For an officer?
- Is there a board orientation or training program?
Red-flag questions: Once you’ve covered the basics, ask about issues that should give you pause before deciding.
- Does the organization have directors and officers (D&O) insurance? If not, you may want to decline because you wouldn’t have personal legal protection.
- Has the organization been involved in fraud or alleged fraud? If yes, ask for full details and the resolution. If an investigation is ongoing or if you’re not satisfied with how they’ve addressed prevention, reconsider joining.
- Is the organization in legal compliance at the state and federal level? States have different requirements. Find out what they are for your state and verify compliance with the appropriate government agency.
At the federal level, nonprofits must file Form 990. Ask whether they file on time and verify this information. You can view 990s and confirm charitable status at https://apps.irs.gov/app/eos/, but be aware the IRS site is sometimes not up to date.
Also ask for the most recent audit or review report; if it was issued more than six months after the fiscal year-end, that’s a red flag. Untimely filings can indicate deeper problems.
After you gather this information, you’ll be ready to make a well-informed decision. To fulfill your duties as a board member, don’t go in blind. Asking questions sets you and the nonprofit up for success. If your skills, interest and availability align with the organization, accept confidently. Serving on a board can be very rewarding.
Lisa Stevenson, MBA, CPA, is the founder and managing partner of NPO Accountants, a firm that works exclusively with nonprofits. She is also co-author of an upcoming book to help nonprofit board members easily understand their fiscal duties.
