(A follow-up to last month’s article – When Board Members Go Too Far)

R. Scott Rodin, Ph.D.

In the last issue of The Frank Group enewsletter I wrote about board members who cross boundaries and ‘go too far’ in carrying out their responsibilities. We received such a strong response that I have been asked to write on the other side of the problem, namely, when board members don’t go far enough.

As I stated last month, CEOs commonly complain to me that their board is either too involved and micromanaging, or too far removed and somewhat useless. Or worse, they are uninvolved, uninformed, and still make critical decisions on behalf of the ministry.

The job requirements for board members should serve both to keep members within boundaries and to set the bar clearly so that all board members may fulfill their full responsibilities. The seven areas of responsibilities of every board member are:

1. Hire, manage, evaluate and support the CEO
2. Develop and maintain mission, vision and strategic direction
3. Provide fiduciary guidance and direction to ensure solvency and integrity
4. Establish, review and amend policies
5. Develop and maintain a healthy board that serves the needs of the ministry
6. Give cheerfully, generously and first
7. Speak and work publicly to further the work of the ministry

Given this list it is easy to see where many board members fall short. However, poor board performance is most often a symptom of a deeper concern. Here are five of these concerns that I see most commonly in ineffective boards.

On Thursday, Aug. 17, President Bush signed into law a pension reform bill that includes several giving incentives, including the IRA rollover provision. NOTE: US CHARITIES ONLY

The IRA rollover provision included in the pension reform bill provides an exclusion from gross income for certain distributions of up to $100,000 from a traditional individual retirement account (IRA) or a Roth IRA, which would otherwise be included in income. The provision is effective for two years through 2007, and only applies to donors age 70½ and older.

Fundraising strategies and plans will need to be immediately adjusted to account for the new IRA rollover provision, which applies only to tax years 2006 and 2007 under the new provision