Is Your Board Worth It?
Author: Garth Nowland-Foreman, LEAD Director
How much do our organisations invest in our leaders? Chances are that almost all our investment in time, budget, technology and training goes to our paid managers – which is great. But, what about those unpaid leaders who serve on our boards? Should they be paid in recognition of their contribution or is there a better way of investing in them?
Ironically the people who have the overall legal and ethical responsibility are paid the least and often actually spend the least time working on the organisation. We are often asked should non-profit board members be paid, frequently in desperation when organisations either are finding it difficult to fill a chair around the board table, or too many chairs are filled with people not sufficiently committed.
In Aotearoa New Zealand, there is no legal prohibition on non-profit board members being paid sitting fees unless prohibited by your own trust deed, constitution, rules or equivalent.
Sitting Fees or Board Honoraria are to be distinguished from reimbursement of expenses incurred by board members on behalf of the organisation, or of payment for specific goods and/or services to a person who also happens to be a board member. There are restrictions regarding conflicts, or perceived conflicts, of interest, and there are tax implications; just calling something a koha or honorarium doesn’t necessarily wipe out obligations of the recipient to pay income tax. But these are issues for another blog.
There is no evidence that payment of sitting fees is more likely to attract (good) board members, nor that it increases commitment. There is also no evidence that, in itself, it increases diversity or removes barriers to participation for low-income people. There is some evidence that paid board members are more likely to turn up, but is that really our goal, just “turning up”? At LEAD we generally take the view that as long as there is adequate compensation for actual expenses incurred, payment of sitting fees for board members adds little if anything to organisational or board performance, and risks muddying generosity and potentially diluting commitment to the organisation’s vision or mission.
We believe you’ll get much better “bang for your governance buck”, by investing the same (or even some!) money into a governance line item in your budget. It can fully reimburse expenses they incur in getting to meetings. It can provide board members with better technology (including what can be significantly time-saving, specialist board software). It can pay subscriptions for governance resource material. It can pay for away-days, and facilitators for board planning and development. It can pay for investments in board member training and skills development
While it can seem like self-interest, from a social enterprise engaged in non-profit training, coaching and facilitation, of course we would say that! But, we are involved in that work because we believe they are some of the best ways of supporting and developing non-profit organisations and their leaders. You don’t have to use us, but please still invest in your board members, they deserve it. Your whole organisation is worth it.
As well as the cash, we have found from our experience that the biggest single obstacle to board members investing in their training and development is TIME. Let’s be honest with ourselves, even for our most dedicated board members, their involvement on our board is the fourth or fifth priority in their life. It is not their job, it is not their family, it is (usually) not their religion, and it is (usually) not their recreation. Where do they find extra time to be involved in even more on top of their faithful board service?
These factors were very much in mind when we developed a couple of years ago the Governance Bites programme, which has now been refined and developed into the 2022 Governance Bytes Series, based on the following principles:
Comprehensive – over 11 sessions you will cover all the essentials of good governance, based on the latest international research and local experience
Affordable Cost – at only $69+gst per session, you don’t have to spend a fortune to make a positive difference
In bite-sized offerings – each session is only 90 minutes a month, so you don’t have to give up your whole life to get some great benefits
Mix and match – you don’t have to sign up to the whole banquet, you can pick the bits yourself that whet your appetite the most, and put together your own tailor-made feast
Even further discounts (10% off) and recognition with a LEAD certificate for those who do pick six or more sessions
No travel time – log-in from where-ever you are, but these are not webinars to passively watch; they are online live workshops to participate in, with opportunities to apply to your particular situation, and using the best principles of adult education.
Click here for more information on our 2022 Governance Bytes programme. Or check our Events page for more detail on each of the various workshops. The first session begins this month (February).
While we are immensely proud of what we do, we are aware we are not the only folk to offer governance training. Whether you get involved in our programme or not, please find the best way for your organisation to invest in your board leaders.
They ARE worth it!