Schools dream about attracting Board members with deep pockets. “If we could just get a few rich Trustees, our problems would be solved!”
In reality, the way you structure your Board membership must be designed to support your school’s mission, as expressed through the strategic financial plan. That means creating a “Board profile”—a list of the resources and expertise you need to meet those strategic goals.
The basic profiling categories are often simplified as “work, wealth, wisdom” or “time, talent, treasure.” While it’s hard to imagine circumstances in which Board members in the “treasure” category would not be an asset, you need strength in all three areas.
For example, you may need to profile for construction knowledge, legal expertise, accounting skills, marketing know-how, or community involvement. It all depends on the goals set out in your plan for the next six years.
It’s not easy to simply “profile for wealth.” People of financial means have many demands on their time and generosity. They need to be “cultivated”—brought into the life and mission of your school in ways that link with their own interests and goals.
You may also find that some well-to-do professionals (contractors, insurance agents, attorneys, public relations firms) would rather do business with the school than serve on its Board. They should not do both.
Profiling is a process—providing a series of opportunities for the prospective Trustee to expand involvement with and support of the school. Over time, the person might be asked to advise the School Head in an area where she has expertise, attend school events in line with his interests, contribute to a fundraising campaign, and/or serve on a Board committee. Only after demonstrating interest and commitment would the person be invited to join the Board.
In profiling for wealth, the advantages to the Board, and to the school’s bottom line and development efforts, are easy to see. (There’s a reason it’s one of the three criteria.) However, mission-appropriateness and an excellent “fit” with the strategic plan’s goals are just as essential. Schools tend to overlook the potential disadvantages of overemphasizing wealth.
Wealth: The Plus Side
Board members with wealth offer valuable assets, both as individuals and in their circle of relationships. They are excellent candidates for the Major Gift Committee and can make substantial lead gifts for fundraising campaigns. Through their relationships, they have access to others with money and influence, and can encourage them to become major donors and serve on the Board.
Wealth: The Drawbacks
- Your school can become overly dependent on a wealthy Board member. When that person leaves the Board, hits a financial downturn, or decides to shift support to another cause, the school might face a budget crisis.
- There’s another concern related to ongoing “bail-outs.” Successful people are interested in supporting success, not shoring up a struggling enterprise unable to attain firm financial footing. What happens when the Board member is no longer interested in writing the check to bridge the gap?
- The school can end up under the Board member’s control, to a greater or lesser degree. What she chooses to fund is accomplished, whether or not it is in the school’s best interests. For example, the Trustee might be able to guarantee donations to support construction of a new gym. But can the school pay for maintenance, utilities, insurance, and other associated costs over the years? And if the school’s most pressing need is to upgrade technology, what impact does this have on the strategic plan?
- Others on the Board and in the school community may not be as generous because they know there’s someone who will write that last check to reach the annual fund or capital campaign goal.
Board profiling is a powerful tool, one that allows your school to think deeply about the impact the Board can have during a specific strategic financial planning cycle. Consider where wealth fits into your profiling efforts. Even if your Board is not profiled effectively, it can still create a great plan—however, Trustees can find themselves woefully unprepared when it comes to accomplishing the goals.
For more on strategic financial planning, attend our workshop, Strategic Financial Planning: Skills and Implementation.
Additional ISM resources:
ISM Monthly Update for Trustees Vol. 10 No. 3 Characteristics of the Ideal Trustee
ISM Monthly Update for Trustees Vol. 12 No. 4 Four Critical Ways the Board Supports the Annual Fund
Additional ISM resources for Gold Consortium members:
I&P Vol. 29 No. 12 Board Profiling: A Structured Approach
I&P Vol. 28 No. 9 Your Strategic Financial Plan: Format and Reporting
I&P Vol. 32 No. 3 The Buck Starts Here: Philanthropic Responsibilities of Your Board
