DIRECTORS’ DUTIES NOW
FPLG COVID-19 RESPONSE
DIRECTORS’ DUTIES NOW
[UPDATE: November 12, 2020]
Board decisions made in recent months in hopes of resuming at least some regular operations have been dashed by the dramatic worsening of the pandemic. On the other hand, the prospect of a vaccine broadly available by mid-2021 may mean an end in sight to any retrenchment moves taken over the winter.
This will likely be a demoralizing and stressful time for nonprofit boards, particularly for those seeing greater demand for services but less revenue. However, for purposes of “scenario planning,” the contours of the next quarter or two are now more sharply in focus – with light at the end of the tunnel.
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[UPDATE: September 24, 2020]
Most of us had hoped that, by Labor Day, we would be returning to at least some semblance of normalcy. Clearly, we are not. (And many philanthropy thought leaders now urge that we should not want to return to a “normal” that rested on flimsy and flawed structures and institutions that led to deep inequalities and unfairness.)
The nonprofit sector includes a broad range of organizational challenges and decisions. Some groups, including those with “essential workers,” have largely stayed open from the earliest days of the pandemic; they have had to deal with complex issues of safety for their staff and the public as well as surges in demand for services. Other organizations moved to remote staff work and to modified or deeply curtailed operations and programs. They now face shifting and contradictory government and health directives about when and how to reopen. Sadly, a sizable number of our ranks are facing dismal prospects for long-term survival.
The role of the board of directors – along with executive leadership and staff – is now more critical than ever.
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[UPDATE: June 24, 2020]
Three months into the COVID-19 pandemic, the board’s duties continue to be critical, despite the competing and important demands on their time and attention by their own business and personal responsibilities. Each director must continue to commit to heightened and continuous participation in strategy and operational planning sessions, particularly now as many states and local governments authorize phased reopening permissions.
The realities of this pandemic crisis have gone against our natural desires to get back to “normal.” Amid the waves of reopenings around the nation are new moves by officials and health advisors to consider or implement retrenchments because of the unrelenting spread of the disease in various hot spots. This creates an element of existential chaos and uncertainty that no one in our society – including nonprofit executives and board members – has previously known or experienced.
There are important decisions to be made about the near or long-term viability of individual programs and activities as well as the sustainability of the organization itself. The matter of succession planning should move front and center in light of the real possibility that the organization may lose one or more key people.
The revision or drafting of new formal, written, policies that ordinarily might be handled at the staff level may now rise to the level of board attention. Specific topics are covered in other sections including “Health and Safety,” “Employment Law,” and “Remote Operations.”
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[March 31, 2020]
The board of directors of a nonprofit organization has the ultimate power, authority, and responsibility for it. The board may delegate management of the activities to others including the chief executive officer, “provided that the activities and affairs of the corporation shall be managed and all corporate powers board’s duties continue to be critical now that it’s clear that this crisis shall be exercised under the ultimate direction of the board.”
More than ever, in a time of crisis, the board chair and the CEO must work together.
The board acts as a collective body, but the individual members have fiduciary duties to the organization.
Boards find themselves facing a host of challenges as they work to fulfill their fiduciary roles in the pandemic….But the challenges of the pandemic may provide opportunities to evolve governance in ways beneficial for the long run.….
— Dr. Cathy A. Trower et al. (10/27/20)
Governance is not about organization; it’s an essential function in addressing a particular issue or need in our community…. For so long, individual organizations have been the default unit to address problems, and we assumed that it would always be this way. But now, more than ever, single organizations do not appropriately match the scale required for the most critical and substantive community issues and problems. It has become increasingly necessary to develop alliances and coalitions—extraorganizational entities ….
— David O. Renz (7/15/20)
Nonprofits occupy a key role in the response to disasters. …Safeguarding the knowledge, skills, relationships, passion, and creativity of its human resources is an essential component for every organization. In the nonprofit sector, the contribution of the board and staff are even more critical. Many nonprofits operate with a small group of leaders, often playing multiple roles. The unexpected loss of any member of organizational leadership presents a challenge for nonprofits, and the potential loss of several key leaders in a disaster situation can produce a major crisis for many nonprofits.
— The Standards for Excellence Institute (6/20)
The most important thing you can do as a board member is to show up. It may not be in person due to social distancing, but make sure the leadership at the organization knows you have their back and you’re there with them in the fight.
— Laurie Zumdahl, Cause Strategy Partners (3/30/20)
REFERENCES & RESOURCES
- Nonprofit Governance: Outside-The-Box Thinking (November 6, 2020) Linda J. Rosenthal, J.D., FPLG Blog
- Governing in and through a Pandemic (October 27, 2020) Cathy A. Trower, Ph.D. & Peter D. Eckel, Ph.D., BoardSource Blog
- 3 Types of Nonprofit Leadership in Times of Crisis (October 9, 2020) Karen Eber Davis, Bloomerang Blog
- THE BIG RESET: GUIDANCE FOR NONPROFITS (September 2020) Mario Morino, THE BIG RESET, leapofreason.org
- Nonprofit Board Practices and Covid (September 14, 2020) Mike Burns, Nonprofit Board Crisis Blog
- Board Management During COVID-19: 5 Tips to Keep Up Momentum (September 2020) Jeb Banner, Boardable
- Achieving Diversity, Equity, and Inclusion: a Curated Guide to Help Nonprofits (August 19, 2020) Emily Haynes & Karenna Warden, The Chronicle of Philanthropy
- Philanthropy Thinkers on Not Returning to “Normal” (August 4, 2020) Linda J. Rosenthal, J.D., FPLG Blog
- 5 Easy Ways Board Members Can Help During This Crisis (August 3, 2020) Joan Garry, The Chronicle of Philanthropy
- Reframing Governance III (July 15, 2020) David O. Renz, The Nonprofit Quarterly
- A Message to My Fellow White Board Chairs (July 14, 2020) Cathy A. Trower, BoardSource Blog
- The default nonprofit board model is archaic and toxic; let’s try some new models (July 6, 2020) Vu Le, Nonprofit AF Blog
- The Role of Nonprofit Organization Boards of Directors in Times of Crisis (June 26, 2020) Erica Kassman, Esq., Goodwin Law
- A Moment to Change (June 24, 2020) Anne Wallestad, BoardSource Blog
- Nonprofit Leaders, Get Used to the Uncertainty and Focus on the Big Picture (June 15, 2020) Alan M. Cantor, The Chronicle of Philanthropy
- Race, Equity, and Unavoidable Challenges for Philanthropy (May 30, 2020) Phil Buchanan, Center for Effective Philanthropy
- California AG: Charity Governance During the COVID-19 Pandemic (May 16, 2020) Gene Takagi, Esq., NEO Law Blog
- Charity Governance During the COVID-19 Pandemic (May 2020) Office of the California Attorney General
- This is Not a Drill (May 15, 2020) Anne Wallestad, BoardSource Blog
- Fear-Based Leadership Won’t Benefit Your Nonprofit (May 12, 2020) Wayne Elsey, Nonprofit Pro Blog
- 15 Leadership Lessons for Nonprofits Navigating a Crisis (May 11, 2020) Forbes Nonprofit Council, Forbes
- 10 Tips for Board Chairs to Help Nonprofits Survive and Thrive (May 5, 2020) Jeff Jowdy, nonprofitpro.com
- Engaging Your Board During COVID-19: A Virtual Forum (May 4, 2020) Lisa Schol, The Chronicle of Philanthropy
- Best Practices for Not-For-Profit Virtual Board Meetings (April 29, 2020) Sonia Freeman, J.D., Pannell, Kerr,, Forster of Texas PC
- A Dialogue: Governing in a Time of Crisis (April 24, 2020) Propel Nonprofits & MN Council of Nonprofits, The Nonprofit Quarterly
- Partnership in a Time of Pandemic: The CEO and the Board (April 17, 2020) Ann Cohen, BoardSource Blog
- How to Build A Culture of Inquiry During the COVID-19 Crisis (March 20, 2020) Joy Folkedal, BoardSource Blog
- Nonprofit Board Meetings in an Emergency (March 26, 2020) Linda J. Rosenthal, J.D., FPLG Blog
- How Nonprofits and Board Members Can Respond to COVID-19 (March 2020) BoardSource Blog
- Responding to COVID-19: The role of the CEO and the board chair in a crisis (March 25, 2020) BoardSource Blog
- Show Up: Your Role as a Board Member During a Pandemic (March 20, 2020) Laura Zumdahl, Cause Strategy Partners
- Coronavirus and Nonprofits: Challenges & Resources (March 13, 2020) Linda J. Rosenthal, J.D., FPLG Blog
- Nonprofit Governance: Coronavirus and COVID-19 (March 11, 2020) Gene Takagi, Esq., NEO Law Group Blog