All it took was one school tour and conversation with founder Chris Her-Xiong in 2009 to sell Jason Handal on the mission of the Hmong American Peace Academy.
The charter school was then just five years into its effort to provide high-quality education to Milwaukee’s Hmong children to uplift the community, but financial and facility strains limited its ability to grow. A colleague encouraged Handal, vice president of risk products at Northwestern Mutual, to visit the school, where he saw those challenges firsthand.
“I was just drawn immediately to Chris and the school. She shared with me the brief history of the school, her vision, some of the challenges they were having,” he said. “I saw an old broom closet repurposed into a one-on-one tutoring room and just got a sense for how challenging their space issues were. They only had 230 students at the time, but they were feeling the community demand and knew they weren’t in a position to grow.”
“I remember when I left, I said, ‘Man, I’m in. What can I do to help?’” Handal added.
That was the start of his 13-year tenure on the HAPA board, including a stint as chair, during which he saw the school grow from 230 students to more than 1,800, the relocation from its original southside building to a former Milwaukee Public Schools property on North 84th Street, the eventual purchase of that property and the construction of a $30 million high school building in 2021.
The success at HAPA underscores the crucial role board leadership plays in Milwaukee’s mission-driven organizations. For many nonprofits, the difference between sustainability and struggle comes down to board governance. Without effective oversight, even the most compelling causes and charismatic leaders will struggle to fulfill their mission, nonprofit governance experts say.
Those same experts say effective boards generally share a set of characteristics, regardless of their nonprofit’s size and purpose: The board members are invested in the mission, they personally give to the cause, they do their homework and they know their distinct role in the organization.
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Laura Orr[/caption]
One of the biggest and earliest mistakes board members make is saying “yes” to the invitation without considering the commitment required, said Laura Orr, chief executive officer of Milwaukee-based FORWARD Consulting.
“I see this all the time. People get excited, they join a board, it looks good on the resume, but they don’t have the time to participate fully,” Orr said. “I encourage individuals who are considering board service to only consider boards for which they are truly passionate about the mission and can commit their time to. Being selective is important, and that might mean waiting for the right opportunity.”
New board members should take it upon themselves to do their homework and come up to speed on the organization quickly. Often board members are well into their multi-year term before they feel they know enough to contribute meaningfully. They can shorten that learning curve by seeking out more tenured board members for guidance and by not shying away from asking questions.
“Go for coffee and learn from their experiences, get familiar with the finances,” Orr said. “Make sure you are prepared for meetings. If you are getting meeting materials in advance, take time to dig through them. The management team prepared them, and they are important for a reason.”
The onus is also on the organization to offer valuable orientation and onboarding for new board members, including information on how to read financials and the strategic plan.
While some may be shy about asking their colleagues and friends to give to their organization, a good board member must be willing to raise awareness on behalf of the cause.
“The first thing is to tell the story of the organization and their personal story of why they are involved,” said Orr. “From a fundraising perspective, being able to get out there and tell your story as a board member is one of the most powerful things you can do for the organization. The second would be to open your network. Introduce your network to the organization to learn about the great work that is being done.”
Board members should financially invest in the organization. It sets a good example and shows buy-in to other would-be donors. Nonprofits that can demonstrate 100% board giving are also better positioned to receive grant funding; some funders even require it, Orr said.
“What’s a personally meaningful (gift) will vary across board members, but a good rule of thumb is, if you’re serving on an organization’s board, then that should be in the top three of your philanthropic giving for you and your family,” she said.
Beyond fundraising, ensuring an organization’s operations are financially supported is a core responsibility of any nonprofit board. How that looks will vary across organizations.
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Shelly Schnupp[/caption]
“Usually smaller or mid-sized organizations, especially those that can’t afford development staff, will rely more on board members (to fundraise),” said Shelly Schnupp, a nonprofit strategy consultant and associate director of the Helen Bader Institute for Nonprofit Management at the University of Wisconsin-Milwaukee. “But that’s not to say that organizations with their own development staff don’t need board members to play their role. Whether it’s opening doors to people they know who could contribute to the organization or going with staff on fundraising asks, there are lots of things board members can do in addition to financially contributing themselves.”
Another common mistake is board members conflating the designated role of board governance with day-to-day leadership, which is the responsibility of the executive director or chief leader. Boards are responsible for setting strategic direction while letting the executive oversee the leadership team and operations. It’s important for a board member to understand the delineation between the role of the board and the role of the nonprofit leadership, experts say.
“What I often see happen is board members will … gravitate toward their comfort levels,” said Schnupp. “If they’re used to managing in the organization that they’re working in, sometimes that behavior translates to their service on the board. There’s always the risk of board members wanting to play a similar role to what they play on a day-to-day basis.”
“Board members can also pick up bad habits as they serve on other boards,” she added. “So, learning as much as a board member can about the roles and the legal responsibilities of boards can be really helpful. Don’t assume what worked in one organization is going to be the same as another.”
Handal, for example, recognized from the outset at HAPA that his expertise was not in curriculum, coaching teachers or the ground-level work of running a school, but rather in providing strategic direction and financial acumen.
“It’s not necessarily about being an expert in education, but it’s about governance and strategic planning and securing resources and helping guide the school so the school could do its thing,” he said, crediting the Milwaukee nonprofit PAVE (now known as the City Forward Collective) with helping him understand his role as a board member. “The board members at that time were thinking about the curriculum and how to guide Chris to lead the school. … But she didn’t need help setting up the curriculum or hiring teachers. Those are things she does through her expertise and leadership.”
Board chairs, ultimately, are the gatekeepers to make sure the board is staying in its lane.
“It’s very natural for boards to veer into the path of management but if you have a board leader who can recognize that and bring the group back to governance and oversight, that is key,” said Orr.
“There will be times when leadership does come to the board for guidance in managerial/operational areas,” Orr said. “And I think a good board member will listen and ask questions with a lot of curiosity and make sure they stay grounded in the mission when they give thoughts and opinions.”
Her-Xiong, the CEO of HAPA, said that balance is what made Handal’s leadership as board chair effective. Describing him as having a “partnership spirit,” Her-Xiong said Handal provided wise “counsel and guidance” to her in her role.
High-functioning nonprofits are the result of everyone sticking to their designated role, said Handal.
“Chris had a bold mission and vision. … She had great building blocks, dedicated teachers and staff and a highly engaged community,” he said. “When it came to building education curriculum and supporting the community, they were really good there. But they didn’t necessarily have the robust connections into the community, the strategic planning acumen, the governance acumen, the financial planning acumen, and that’s where the board stepped in and … saw so many areas where we could add value. Everyone knowing their role and aligning around a vision and a mission and a plan – it’s such a powerful example of the importance of all those pieces.”
Seven ways to be a more effective nonprofit board member
- Consider the commitment. Before agreeing to serve on a nonprofit board, consider whether you are committed to the cause and can dedicate enough time to fulfilling the role. “Think beyond the hour or two-hour board meeting. Think about the preparation, the follow-up, what you have to do outside the board meeting,” said Laura Orr, CEO of Milwaukee-based FORWARD Consulting.
- Know your role. Board members are responsible for providing governance and oversight, not management of the nonprofit organization. A common mistake is for board members to veer into day-to-day operations, rather than providing strategic planning and direction.
- Seek out resources. Shelly Schnupp, strategy consultant at Milwaukee-based Spectrum Nonprofit Services, recommends subscribing to BoardSource, an online resource for nonprofit board members, and reading the book “Governance as Leadership.” Networking with board members at other organizations tackling similar problems can also provide helpful insight, she said.
- Do your homework. “Spend time before meetings digesting the provided materials so you are prepared to ask questions and challenge any points you need to,” said Orr.
- Don’t shy away from finances. You don’t need to be a finance expert to serve on a nonprofit board, but being comfortable with the budget and financial documents that reveal the organization’s health is necessary. “Some board members might say, ‘That’s not my thing.’ But it really does need to be their thing. It’s part of their fiduciary duty,” said Schnupp.
- Give money. A board member should be giving at least an annual donation to the organization they serve. It sets a good example in the community and sends a compelling message, especially if you are soliciting donations from others. In addition, nonprofits in some cases must demonstrate 100% board giving to be eligible for grant funding.
- Open your network. Especially for those who are skittish about asking colleagues and friends to support their organization, it can be just as powerful to introduce your network to the organization’s mission and your personal commitment to it.
