Make it Transformational: A Blog for Champion Discipleship

Ahhh, nonprofit boards… Peter Drucker said of them “There is one thing all boards have in common…they do not function.”

Wow, he didn’t even put a condition on it like “sometimes they don’t function”!  Are boards really that dysfunctional?  I wish I could say “No, not at all!  This isn’t even close to being true!” but sadly I could tell you more unfortunate stories about board malfunction than otherwise. The good news is there IS hope and there are things we can do to develop strong boards that DO function well.

I’m going to dedicate the next three posts to addressing three areas that can help you build a board that will become a real blessing instead of an unfortunate burden!  This first post will address the WHO – who should be on boards?  The second post will address the WHAT – what do boards need to understand about their roles and responsibilities?  And, the final post will address the need to INVEST in the growth of the board – growth in relation to their role, in relation to the cause and in relation to their own Christian walk.

(Note: to dive into each of these ideas in greater detail make sure you make it to one of the Mission Increase’s free workshops in September on Board Development.)

First, how do many organizations go about choosing the right board members?  They seek out lawyers, accountants, wealthy people, and “important” people who know lots of people.  That’s what traditional wisdom tells us to do so that we can have their expertise for free AND their money!  Nothing like an ulterior motive like that to motivate existing board members...

Now let’s consider how we as Christian organizations SHOULD go about choosing the right board members.  First, we’d do well remembering the James 2 warning not to show favoritism based on a person’s status or wealth, and that we’re accountable to God in how we respect and treat people.  In that case, worldly advice just won’t do.

Instead, how we choose board members should be a reflection of our role in the body of believers, which as leaders is to equip others for good works helping them to grow in full maturity in Christ as they serve.

So, who should you look at for your board members?  Your chief champions!  The individuals that are already being coached and discipled in your cause!  By ‘chief’ I mean those that are comprehensively involved in the cause because they believe in the vision, those that are on a progressive path of learning and growing, and those that are ready for a larger responsibility.  Of course, that doesn’t automatically make them ready for this type of role.  There’s another aspect to consider as well, and that is their spiritual maturity.

1 Timothy 3 & Titus 1 can guide us in seeking people who are spiritually mature and able to take on a leadership role in the organization.  Use these passages to identify characteristics of a good leader.

Let me share one more bit of advice. There’s nothing that says you MUST have a large board -- it will be to your advantage to spend more time on getting the RIGHT board instead of a BIG board.  This might mean that you have a small board for awhile, and it might mean that you need to spend more time coaching your existing champions to develop a few of them to step up to the challenge in the future.

I like what Ted Engstrom said in Boardroom Confidence, “If you have the right board members, the right things happen. If you have the wrong board members, the wrong things happen.”  Choose carefully!

The story starting to come out about Vanguard Public Foundation’s recent implosion is stunning if for no other reason than it provides a cautionary tale to all of us. I appreciate Rick Cohen's effort over at Blue Avocado (http://www.blueavocado.org) to unravel the events that have lead to the downfall of one of the leading foundations. (Check out his investigative report Decline and Fall of the Vanguard Foundation here.)

In short, a flashy, over-the-top businessman sweet-talked and defrauded the foundation while the board went to sleep. Reading though the financials, it’s incredible to me that the board didn’t see they were bleeding cash like they were.

There is an amazing amount of things to be learned from the whole sordid affair, but among Cohen's observations were two big points that stand out in light of this month's focus on board governance (BTW -if you haven't registered for our free workshop The Board's Greatest Gift, now might be a good time). The principles seem obvious in hindsight, yet somehow we manage to overlook them. Each of them on their own, are recipes for disaster, but combined add up to some serious flaw's in the foundation's structure, and reinforces some of the key points in our board workshop.  (My comments below in italics.)

• “Non-attentive trust in the CEO is not a healthy governing model: With warning signals in abundance, observers suggest that the board was even a little mesmerized with the CEO and his celebrity friends. And board meetings were reportedly very rare.” If the board get’s so enamored with celebrities or with a “superstar” CEO that they forget THEY are the legal owners of the nonprofit, they are doomed to failure.  The old adage “Trust but verify” works not only for nuclear disarmament, but also for keeping your nonprofit from going up in a mushroom cloud as well. The board ignored the financial situation of the foundation, trusting in the celebrities to carry the vision, their “superstar” CEO to pull off the miracles, and the flashy to-good-to-be-true salesman to raise money.

• “Some have suggested that Vanguard's moves to turn over some decision making to community leaders left donors disengaged, and resulted in board members who were less attentive to grantmaking decisions and governance responsibilities.”  Second big DUH! When the board relinquishes control over their responsibility to safeguard the vision of the organization and turns it over others (especially those with personal self-interest in changing the vision) the organization is doomed. Donors saw the vision creep and withdrew. There’s nothing wrong with including the community in the process, but boards need to guard against letting the community become the (sole) owners of the organization just as they need to guard against ceding control to the CEO.

I’m sure there will be a lot more information coming out about what transpired along with additional dissection of how they failed, but there is one cautionary part of the tale so far that all of us need to remember – watch out for pride. 

Look at how many times Cohen highlights “even progressive foundations” or asks “are progressive groups vulnerable” as if they are somehow immune from the siren song of riches. Others are stunned that this could have happened to this foundation, once championed as a pioneer and new model for philanthropy.   But this isn’t about left/right, progressive/conservative – both groups could equally share in the same type of pitfall.  Rather, it’s about the overwhelming sense of pride and superiority, the “We know what’s best” and “We’re on the moral high ground therefore we’re above X (x = seduced by riches or making mistakes, or needing to have safeguards, or regular board meetings) that stands out the most. 

In their pride, they had it all figured out. And it was that exact same pride that allowed them to buy in to a charlatan’s scheme and ultimately topple one of the largest foundations. 

Pride DOES go before destruction, and a haughty spirit before stumbling.

May the Lord keep it far from us.

One of the greatest gifts that God has ever given non-profit leaders is a board of directors. I know, you’re probably thinking, “if you knew how dysfunctional my board was, you wouldn’t say that,” and perhaps you’re right. But, even while agreeing with the sentiments that accompany that thinking, I would still contend, that boards can be and in fact are a gift of God’s kind providence to us.

Working with a board has been one of the more complicated and thorny aspects of my role at the foundation. Yet, even in the midst of such a challenge it has proved equally if not more valuable for my personal growth than first expected. It is this experience in working with a board that has more deeply solidified three very valuable lessons: namely, the importance of accountability, the truth that wisdom comes in bundles, and the importance of intentionality in building relationships.

Accountability – I don’t know if this is true for you, but I’m often prone to think that my ideas are the best ideas. In fact, I’m often predisposed to a type of self-bias that precludes the opinion of others in favor of my own logic to a fault. After all, I’ve thought about it longer, care about it more, worked more intimately with the issues, and have much more at stake.

Wow! This wrong thinking and deep arrogance has surely not led to the growth of the organization, but has more often than not probably stifled it. What I’ve realized very acutely is I need my board! I need their input and ideas. I need their unique gifts, strengths, and abilities. And perhaps even more, I need their accountability for mine.

Wisdom comes in bundles – Proverbs 15:22 says, “Without counsel plans fail, but with many advisers they succeed.” Without precondition this promise from the Scriptures gives a great deal of hope for those looking to achieve a measure of success…as well as a path to walk on. In keeping with the ideas above, I find it amazing that God has built certain deficiencies into the body of Christ so that we would necessarily be forced to work with one another if we hope to realize the success of our plans.

Relationships are key – One piece of wise counsel I received early on in my work, was to set the number of board members equal to the number of personal relationships that I could maintain. That counsel was quickly followed by the admonition to work feverishly and intentionally to do so! Though it is often difficult, I make it my goal to get at least one personal meeting with each board member in-between our regularly scheduled meetings. Doing so has changed my outlook on the work that we’ve collectively been entrusted with as well as my perspective and appreciation for those that the Lord has called me to serve with at our organization. These times together have deeply and fundamentally changed the effectiveness of our business meetings and thus the effectiveness of the foundation.

So, what is God teaching you as you work with your board? I’m sure many great things that we would all benefit from if you would be interested in sharing. You can do so by using the comment function below…go ahead, give it a try.

I was recently talking with an Executive Director who is in the midst of leading his organization through change.  Change of the most difficult kind – a personnel change.  As we shared I was reminded of an experience and lesson I learned years ago.

A while back, as the 31 year-old newly elected leader of an organization, I quickly realized that one significant volunteer leadership position had been filled by an individual who, despite the fact that he was trying to serve faithfully, was doing more harm than good.  He needed to be removed and repositioned.  The future of the organization depended on it.  Here was the problem: He needed to be removed and she was on the Board of Directors.  She, as in his wife!

What’s a new leader to do?

I considered this for days and weeks.  I prayed for God’s direction and wisdom.  And, like we all have a tendency to do, I thought about what would happen if I made this change.  Staffers might be upset; she could cause friction on the Board; this could lead to problems off the Board; some would begin to doubt my leadership; supporters could walk.

I reached the point where I was considering not making the change, and then I thought just that:  What if I don’t make this change?  He will stay in the position; the way he handles his job will complicate our strategy for moving forward; our vision for the future will be compromised; we will not be a healthy organization; we will not reach our goals. 

It became a no-brainer.  I met with the Board of Directors and we made the change.

This is now how I make many leadership decisions today.  I don’t ask, “What if I make this change?"  I ask, “What if I don’t make this change?”  By looking at situations from this angle, tough decisions are oftentimes made easy.  Not that the change is easily made, but clarity is gained and next steps are understood.

(By the way, she handled the situation quite well and continued to serve the organization faithfully for many years.)

And, this wasn't simply a personal leadership lesson.  This experience forced me to think through my partnersip with the Board of Directors and their leadership role connected with the organization.  As just stated, "We made the change" - together.  

In September, in Mission Increase Foundation workshops across the country, we'll be discussing board governance and leadership roles.  More specifically, we'll be discussing how to move from "Bored Boards to Engaged Champions."  Organizations that thrive learn the secret to unlocking their board's leadership potential.  Boards are more than legal necessities — they need to own the cause and lead with you.  What does it mean to have a board that supports the staff and mission, taking ownership in the success of the overall organization?

Join us in September to find out.  Hope to see you there!

In his new book, “The Hole in the Gospel” Richard Stearns asks the billion dollar question, “What if Americans did ‘bring the whole tithe into the storehouse'?  How might the manifestation of the kingdom of God on earth be different?”

Stearns continues, “According to the book of Leviticus, the first 10 percent of our income is to be offered to God: “A tithe of everything from the land, whether grain from the soil or fruit from the trees, belongs to the Lord; it is holy to the Lord.”  The tithe was not considered a gift to God – it belonged to God.  There were other provisions that spoke to freewill giving, but any such offerings were to be over and above the 10 percent required for the tithe.  That first 10 percent was seen as a bare minimum one would set aside for the Lord.”

I will venture to say that most of the evangelical Christians in the U.S. today know what the Bible says about tithing.  They would also agree that our money belongs to God and that we are simply stewards of what He has blessed us with while we are on earth.  Why then, do only 24% of evangelical Christians tithe in today’s economy?

The money given to churches and para-church organizations in the U.S. alone is having a tremendous impact in our communities and around the world.  We know we are saving lives and saving souls.  But where are the other 76%?  What would happen if we all gave our tithe – that is 10% of our incomes instead of the 2.5% we actually give?  We would have an extra $168 billion to spend in funding the work of the Church worldwide!

Stearns also states, “If every American churchgoer tithed, we could literally change the world.  $65 billion could eliminate the most extreme poverty on the planet for more than a billion people.  Universal primary education for children would cost just $6 billion; the cost to bring clean water to most of the world’s poor, an estimated $9 billion; and basic health and nutrition for everyone in the world, $13 billion.

Can you begin to catch a vision of not only what this would mean to the world’s poor but what it would do for the image of the world’s Christian’s?  Imagine how stunning it would be to the watching world for American Christians to give so generously that it:
•    Brought an end to world hunger
•    Solved the clean water crisis
•    Provided universal access to drugs and medical care for the millions suffering from AIDS, malaria, and tuberculosis
•    Virtually eliminated the more that 26,000 daily child deaths
•    Guaranteed education for all the world’s children
•    Provided a safety net for the world’s tens of millions of orphans

Think about the statement it would make if American Christian citizens stepped up and gave more than all of the governments of the world combined because they took Jesus seriously when He said to love our neighbors as ourselves.  The world would see the whole gospel – the good news of the kingdom of God – not just spoken but demonstrated, by people whose faith is not devoid of deeds but defined by love and backed up with action.  His Kingdom come, His will be done, on earth, as it is in heaven.  This was the whole gospel that Jesus proclaimed in Luke 4, and if we would embrace it, it would literally change everything.”

*The statistics above are all referenced in Richard Stearn's book, "The Hole in the Gospel."