How can nonprofits address the fiscal crisis, build effective boards and be proactive? Bob Edgar, President and CEO of Common Cause answered these questions to nonprofit audience at the Stepping Up Matters! Conference produced by VCG boardnet/USA on Wednesday, April 22, 2009.
On the Economic Crisis
Looking at the problem in a new way, he said, “Most of our problems are mission and vision, not fiscal.” Instead of being reactionary to budgetary constraints, now is the time to assess where the organization is going, what its priorities are and what leadership is needed. “People don’t give to deficits and budgets, they give to mission and vision.” And when something fails, “Don’t be afraid to say something didn’t work.” Transparency and trust is more important than ever.
In this time of increased competitiveness, he reminded us that nonprofits are working to solve common problems and quoted Common Cause Founder John Gardner: “The things that unite us are more important than the things that divide us,” to suggest that we should be finding ways of working together. Look to other sectors of ideas and to see what is working.
On Board Development: The 4 Ws
He looks for board members that have two of the following qualities: Wealth, Work, Wisdom, Wallet. It’s not how much they give, he said, it’s how they respond to owning the outcome of the organization. Seek to build a board with diversity, different ages and ethnicities as well as a diversity of skills and gifts. Attract younger people who can help you understand the new issues and thinking. Keeping people engaged is essential. “The plan isn’t as important as the process.” And have people who know how to read financial statements.
On Forming an Advisory Board
Edgar is big on getting people involved and has a large extended advisory board. He asks anyone he meets who shares the spirit of the organization to join the advisory board. Though not a formal board that meets, it connects people to the organization and each other and provides a means to the organization to tap into people’s networks at critical moments.
On Maximizing Meeting Time
Since it is difficult to get people together, maximize this time by using the morning as a seminar by a sector expert or an update on the organization’s activities, and the afternoon session for the meeting.
On New Threats & Opportunities
Apparently fond of words starting with the same letters, he articulated the new concerns as Fear, Fundamentalism and Fox News, and the universal goals of Peace, Prosperity and Planet Earth.
On Movements
With membership in nonprofits decreasing steadily over the past decade or so, what can nonprofits do? People are joining movements, he said, and nonprofits need to be the engine of those movements. He asked, how do we do we engage “ego disarmament” around who gets the credit?
