How CPAs can benefit from not-for-profit board service

Service on a not-for-profit board can be a career-changer that broadens professional and personal vistas for CPAs.  A board seat presents an opportunity to expand personal networks, develop leadership skills, and engage deeply with meaningful charitable missions.

Three experts in not-for-profit leadership provide insights and advice on finding the right board, acing the selection process, and contributing effectively to the organization.

“When you have a special skill set like finance and accounting, it’s just a great opportunity to use it outside of your day job in a way that you can really see impact,” said Cheryl R. Olson, CPA, CGMA, a director at Clark Nuber, a firm in Bellevue, Wash., who has served on numerous boards, related committees, and advisory groups.

“It’s for people who are looking to expand life, beyond just work,” she added.  “It’s an opportunity to get out into the environment and see what else is happening in organizations.”

WHERE TO FIND BOARD OPPORTUNITIES

Most CPAs won’t be walking through an organization’s doors and straight into a board appointment.  Instead, board membership is the conclusion of a long journey.

“Boards, especially more established and larger organizations, want to see prior board or industry experience, or they expect generous donations.  If you don’t have experience or the ability to meet a high giving level, you likely need to start out smaller,” said Daniel Romano, CPA, a partner and the not-for-profit tax practice leader at Grant Thornton in New York.

“You need to aim for charities that you’re passionate about, but also those for which you can bring value in some capacity,” Romano said.

The journey sometimes begins with volunteering for an organization.  For some organizations, for example, that might mean helping to fulfill its core mission, such as tutoring students or simply picking up litter (see the sidebar “Not-for-Profit  Boards: 8 Tips for Volunteering”).  Alternatively, an organization might be looking more specifically for help with accounting and finance.

“One way to find such organizations is through networking,” Romano said.  “You might make a connection at an event, in your personal life, or by seeking out members of a specific organization. Eventually, a strong network can lead to opportunities.” 

Also, listings of not-for-profits in need of assistance can be found through state CPA societies; on job platforms like LinkedIn; and through volunteerism-focused services like Idealist .  Which is how Carolyn Mollen, CPA, got connected with a not-for-profit that shaped her career and personal life.

Mollen is now vice president for finance and administration at Resources for the Future, a not-for-profit research institution in Washington, D. C., but she also is a former theater major with an arts background.  About 15 years ago, she leapt at an Idealist listing for an outdoor theater camp that needed finance and accounting help.

“Well, I like theater, and I like the outdoors,” Mollen said.  “And they were delighted to have me volunteer because I think it’s really hard to find people who have financial expertise and are willing to contribute that to small organizations.”

That commitment turned into almost a decade of board service for Mollen .  And her daughter, now 16, has been attending the camp since she was a toddler.  Those are the kinds of personal and professional connections that can develop with the right organization.

“You have to care; you have to be a representative of the organization once you’re on the board.  And so, it’s important that it’s something that you care about, or I think it’s hard to be a good representative.  And you should feel like you have a skill set to contribute,” Mollen said.

The right opportunities, she added, are a combination of:

• Your interests;
• Your availability; and
• The organization’s needs and expectations.

“I think everybody is cut out for it.  It’s just a matter of finding the right fit for you,” Olson said.

NAVIGATING THE APPOINTMENT PROCESS

Once you’ve found the organization you want to serve, how do you land that coveted seat on the board?  It depends on the not-for-profit, Olson said.

“Just like every nonprofit organization is different, the process in which they get board members is so varied,” she said.

An early step toward board membership may be to join a committee of the board, an approach Olson called a “great test drive” for both sides. Romano recommended finance committees, investment committees, and audit committees as potentially good fits for CPAs.

But before taking on any board or committee role, applicants should research the organization’s financial health and plans, including reviewing the following documents:

• Recent board meeting minutes, which may show the board’s top issues and the perspectives of the various members.
• Financial statements, which tell the organization’s financial story and, in some cases, raise red flags.
• Strategic plans, which should show how . And whether .  An organization is preparing for the future.

Due diligence prepares a prospective new member for the appointment process, which is likely to include meetings with the organization’s executive leadership, the board chair, and perhaps individual board members.

“There’s an interview process.  They’re going to look at your resume and say, ‘What are you going to bring to the table?’ ” Romano said.

Potential board members should also understand how their skills might meet the board’s specific needs, Olson said.  “Are they just looking for a general member, or are they looking for someone that has a specific skill set?” A board typically will require several people with a financial background, which may range from finance and investing to accounting and governance.

“Is there a written position that describes what board members should be doing?” Olson asked.

CONSIDER THE COMMITMENT

Before accepting the honor of joining a board, consider the costs and expectations of membership.  The biggest questions include:

• How much money, and how often, are board members expected to donate to the organization?
• How often, and for how long, does the board meet?  What other obligations are placed on members time?
• Does the organization offer appropriate liability insurance to protect board members from unexpected costs related to their new responsibilities?
• Can you meet all the requirements for board membership in your state?  What about the organization’s policies, including conflict of interest?
• What is the organization’s financial health, and does it have the proper leadership to address related revenue and spending challenges?

The most obvious burden may be the hours to be spent in meetings, retreats, planning sessions, committee meetings, and community events.

“Different boards have different expectations,” Mollen said.  It’s important to understand the frequency and length of meetings and other events, she said, as well as the length of board members terms: “Is it a multiyear term or a one-year term?” she asked.  “Be sure you can commit to what you’re stepping into.”

Board membership also comes with specific personal responsibilities for board members, which can vary by state.

“You have fiduciary and legal responsibilities as a board member.  It’s important to take that seriously,” Mollen said.  She and the other experts advised reviewing all rules, regulations, and laws applying to board service in your state.

More broadly, according to Romano, potential board members should take a critical eye to the organization as a whole.  “I’m interviewing them as well.  What’s the makeup of the board?” he said. 

“Does it have the expertise that it should?”

“Boards should be well rounded,” he said, “rather than simply serving as a rubber stamp for the organization’s executives.” Olson suggested asking to talk with several current board members before accepting an appointment, if that didn’t happen during the appointment process.

Failure to check an organization’s financial and structural health could result in reputational damage for board members should things go poorly.  Olson gave the example of an organization that asked her to join the finance committee. Upon attending a meeting, she looked over the not-for-profit’s finances and realized that the organization was at risk of running out of money — and leadership was apparently unaware of the impending crisis.

“I just thought, ‘This is an organization I don’t want to be affiliated with because nobody is paying attention,’ ” she said.

WHAT TO DO ONCE YOU’RE ABOARD

An individual’s board service usually begins with a unanimous vote of support from the current members, Mollen said.  Then comes the hard work.

Olson advised tapping into all available training and onboarding materials the organization offers, as well as once again reviewing audited financial statements, Forms 990, governance documents, and any legislation relevant to board service in your area.

Romano said new members should get involved with the organization if they’re not already.  “Can I volunteer?  Can I go to beach cleanups?” he said.  “I want to be able to experience it, so I can get that hands-on knowledge.”

It’s also critical to understand the board’s role within the not-for-profit.  In smaller organizations, the board’s role may include more hands-on work with operations, Olson said.  Larger organizations’ boards may focus on strategy and governance.

Either way, Romano said, board members must strike a balance — to support the organization’s staff without overstepping the bounds.  “You’re not there to run the organization.  You’re there to guide, to provide advice.  But at the end of the day, it’s not your decision, it’s management’s,” he said.

Board membership can require a shift in mentality, especially for those who haven’t had executive-level experience.

“Being on a board, there’s always competing priorities and competing resources,” Olson said.

“And when you make a decision, it’s about what’s in the best interest of the organization, not for one specific department.”

Board members should take the new role seriously and acknowledge it will require some learning.  Listening and asking questions are key skills, she said.  “Always challenging yourself to be present at a meeting, reading the advance materials — showing up.”

Ultimately, board service is a chance to help an organization reach its full potential and navigate its challenges.  “You may have to make some very difficult decisions,” Mollen said.

But for all the costs and responsibilities, it’s a worthy endeavor, Romano said.  “The biggest pros are how you could impact the world.”

NOT-FOR-PROFIT BOARDS: 8 TIPS FOR VOLUNTEERING

Service on a not-for-profit board can be educational and fulfilling while also building your résumé and helping to make new professional connections. Here’s a summary of the advice experts offered:

• Utilize personal and professional networks, as well as websites like LinkedIn and Idealist, to discover not-forprofit opportunities.
• Choose an organization that aligns with your interests and where you can contribute significantly.
• Begin your journey with volunteer work or committee involvement to gain insight into the organization.
• Anticipate a detailed selection process, potentially including interviews and background checks, depending on the size of the organization.
• Investigate the organization’s financial status, strategic direction, and board dynamics.
• Be cognizant of the time commitment and financial contributions involved in board service, as well as the legal responsibilities in your jurisdiction.
• Pay close attention and participate in meetings, committees, and organizational events.
• Keep the broader goal of enhancing the organization’s impact and community presence in mind.

About the author

Andrew Kenney is a freelance writer based in Colorado. For more information or to make a purchase, go to aicpa-cima.com/cpe-learning or call 888-777-7077.

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AICPA & CIMA RESOURCES

Articles

“Not-for-Profit Board Structure: An Overview,” AICPA & CIMA, Jan. 4, 2023 (NFP member exclusive)

“Benefits of Public Sector Accounting Careers,” JofA, Nov. 1, 2022

“To Enhance Learning, Mix Education and Service,” JofA, Oct. 12, 2022

“3 Ways NFPs Can Adapt Online to the New Economic Climate,” JofA, March 25, 2022

NFP resources

A primer on board responsibilities

Board recruiting matrix for not-for-profit entities (NFP member exclusive)

Nonprofit board oversight: Top 10 issues for organizations of all sizes (NFP member exclusive)

Not-for-profit board member orientation checklist (NFP member exclusive)

Not-for-profit board resources page