Are you involved with a nonprofit organization? If so, you may find this analogy quite intriguing. I'm going to share a unique perspective on nonprofits, likening them to private jets when it comes to boards.
Now, before we delve into this analogy, let's clarify one thing: you can't actually own a nonprofit. This distinction is critical, mainly in terms of tax classification. Nonprofits cannot have shareholders or be owned by individuals or entities. It's a fundamental characteristic that sets them apart from for-profit businesses.
So, why do I say nonprofits are like private jets in the context of their boards? Well, imagine you're a board member of a nonprofit. In this analogy, the nonprofit is akin to a private jet, and you now have ownership of it. However, let's assume you're not a qualified pilot, nor are you a skilled mechanic specializing in jets. You're like me—knowledgeable about nonprofits and people, but not an aviation expert.
Given this scenario, if you were handed the keys to your very own private jet, would you attempt to be the pilot? It's highly unlikely. Flying a complex machine like a private jet, especially without the necessary expertise, is not only risky but also potentially disastrous.
Similarly, would you try to be your own mechanic, ensuring that the jet is in perfect working condition? Probably not. You'd want a certified, trained mechanic to inspect the aircraft thoroughly before taking off into the skies.
So, what's the point here? Your nonprofit, much like a private jet, is a complex entity that demands attention, training, and experience to operate efficiently. I often say that nonprofits are businesses, but they are even more intricate than for-profit businesses. They involve numerous stakeholders, a blend of fundraising and mission delivery, volunteers, donors, and a myriad of moving parts.
In essence, running a nonprofit is a full-time job that requires qualifications and expertise. This is why I strongly advise that boards refrain from making operational decisions as if they were the pilots. Instead, focus on oversight and governance.
You may have come across the idea of a "twin pilot" approach, where the board chair and the executive director act as co-pilots. While this concept might seem appealing at first glance, it often falls short in practice. When real-world challenges and pressures come into play, it's essential to recognize that the board and the professional staff, including the executive director, should not be co-pilots.
Imagine it as placing a passenger, who lacks pilot knowledge, alongside a trained and experienced pilot. The passenger remains just that—a passenger. The pilot, on the other hand, has the skills, expertise, and responsibility to navigate the journey safely.
This co-piloting concept may have its roots in the history of nonprofit leadership. In the past, nonprofits were often managed by wealthy and influential boards that sought both influence and philanthropy. These boards made all the decisions and typically hired administrators instead of executive directors. Some nonprofits still use the outdated "administrator" title for their leaders.
However, in the modern nonprofit landscape, we have executive directors and paid staff who aim to maximize impact without concentrating power among board members. In this context, it's essential to structure nonprofit governance to allow professionals to manage the organization effectively.
Boards should focus on oversight, ensuring that they've hired the right pilot and mechanic for the nonprofit jet. Are they experienced, trained, and adequately supported? These are the questions that boards should be asking.
In conclusion, nonprofits and private jets share a common thread. Just as you wouldn't attempt to pilot a private jet without the necessary expertise, boards should refrain from making operational decisions within nonprofits. Instead, concentrate on providing oversight and governance to ensure that your nonprofit soars to new heights.
If you're interested in receiving more tips like this, perhaps even in your email inbox, visit www.pivotground.com/sign-up. I'll be sending valuable insights your way.
