The Nonprofit FAQ
What Information Should Board Prospects Receive? |
Someone asked in Nonprofit (see http://www.rain.org/mailman/listinfo/nonprofit): "Suppose a potential board member, being actively recruited by the board, asked to see a year's worth of minutes, saying she needed to know more about an organization she wanted to join. Would this be appropriate and advisable, or not? And who would make such a decision -- I assume it would be the board as a whole, not just the nominating committee." Donald A. Griesmann, Esq., a Consultant with Community-based and Faith-based Organizations from Ventnor, NJ, responded on December 1, 2003: The request seems reasonable and maybe insufficient. Minutes of nonprofits can be woefully inadequate about the nonprofit's workings. I would ask for any recent audits and financial reports. When I negotiate a contract for consulting I request a copy of -
The request is made with the understanding the papers will be returned and all material is to be kept confidential unless I learn the same matters from some other source. This list may be overkill for some folks but some of these documents should be part of what a board will offer to new prospects. If a board does not have a policy about what documents will be made available to prospects, then the prospects should ask for those documents that will help her/him decide about joining the board. What would you pick? In my view the board should decide what will be offered in addition to those legally required. I know that as the nonprofit board leadership and I discuss a contract that I will ask about insurance coverage, current legal issues and litigation, status of all funding and more. CAVEAT: I am required to tell you that I am an attorney in the state of New Jersey. It has not been my intention to give you legal advice. I may have given you legal information, but not legal advice. Carter McNamara wrote in January 2000 to announce: The Free Management Library suggests several important considerations to address before joining a board. See http://www.mapnp.org/library/boards/boards.htm#anchor585925 See also "What Must We, What Can We Disclose to the Public, Staff, Board and Clients?" by Don Griesmann in the Nonprofit FAQ at http://www.idealist.org/npofaq/0/1505.html Posted 12/1/03; revised to include MAPNP and the FAQ cross-reference 6/25/06 -- PB |