queenschamber.org THIS IS QUEENSBOROUGH 8 ALL ABOARD! As reported in the October 2015 brief on the nonprofit sector by public policy research organization the Urban Institute, there were over 1.4 million registered nonprofit corporations in the U.S. as of 2013 which contributed over $905 billion to the U.S. economy nearly 5 ½ percent of the country’s GDP. The upshot of these impressive numbers is that, although they are defined by their 501(c)(3) status, nonprofit organizations are businesses which contribute not only to the given charities that they serve but also account for a significant slice of the U.S. economy. The first thought that probably comes to mind when discussing money and nonprofits is the issue of fundraising, an ongoing challenge for all but the largest and most renowned nonprofit organizations. However, an organization cannot properly leverage its resources, function optimally or attract new donors without strong governance—that governance being an active and informed board of directors. “A board is about oversight,” said Sonia Saleh, founder of Uplifting Nonprofits, a consultation service that focuses on donor and board relationships. “You want to find leaders,” she continued. But finding the right leaders is no easy task; in fact the National Council of Nonprofits devotes an entire section of its website to the topic. The Council suggests that inviting potential candidates to serve on a committee can be an effective way to determine whether that person would be a good fit for the board. It’s a strategy that Larry Grubler has used to recruit members for his board. Grubler is the CEO of Transitional Services for New York (TSINY), a Queens-based rehabilitative service for individuals recovering from mental illnesses. “I want to know the candidates,” he said. “We have an advisory committee to help with fundraising,” he continued, which he uses the committee as an opportunity to determine whether someone has expertise in a given area. “The committee meets quarterly, and I’ve gotten to know committee members who were later invited to join the board.” Grubler said he often knows someone for a couple of years before moving forward with a board invitation, but it’s not the only way that he has recruited a new member. He also attended a networking event that was held for nonprofits and potential board members to meet. “It was kind of like a speed-dating event,” he said, “and I was surprised to be meet a guy that I asked to join the board, and he’s worked out great.” So you have found a terrific candidate who can bring to the table the experience and knowledge you need in, say, law or finance or other professional area. The person has strong social skills and can work well with others, key attributes in working successfully on a board. After that, “New board members need orientation and training,” Saleh said. “And,” she emphasized, “strong relationships.” Relationship building is not limited to working well with fellow board members or with the nonprofit itself, however. External relationships, those that help to promote the nonprofit, are just as important, if not more so. Why? In addition to governance, fundraising is partand parcel of a board member’s responsibility—one which many board members do not fully realize when they accept the position. According to a 2014 survey conducted by BoardSource, the nonprofit advocacy group, approximately 2/3 of nonprofits expect board members to make an annual personal contribution to the organization, but only 60% of boards reported that all of their board members did so. Furthermore, the overall umbrella of “nonprofits” masks the actual diversity of charitable organizations that make up the sector and the contribution policies they have for board members. For example, the BoardSource survey also reported that arts and cultural organizations are more likely to require board member contributions than nonprofits in other fields. And, Grubler said, “Funding is different if you’re a healthcare nonprofit or if you’re an arts or education nonprofit.” Another challenge is having board members actively fundraise on behalf of the organization. “People don’t want to ask for money,” said Saleh. But, being an ambassador for the organization raises awareness and the potential for new donors, which is particularly important for small nonprofits and those that are just starting up. Grubler was one of the attendees at the Chamber’s recent nonprofit roundtable discussion. “Finding common ground of what the issues are for all nonprofits is important,” he said, “and I’m pleased with what the Chamber is doing to advocate for nonprofit businesses.”
QB112016
To see the actual publication please follow the link above