In yesterday’s article, I made the following statement about what I would do if I started a new Pregnancy Help Center:
“…I would begin with a robust Promotion strategy backed by a substantial, non-negotiable, budget. And, I would only bring on Board Members who bought in to that strategy.”
You may be asking, “Why are the members of your Board of Directors that important?”
Good question.
If you do a Google search for “Responsibilities of Board of Directors” there are a plethora of websites that can give you sufficient definitions.
Here’s one that I chose, but you’ll find similar explanations on other sites:
“Board directors of today are expected to represent independent and diverse perspectives. Their main role is to perform the duties of strategic planning and oversight.
Boards typically look for specific qualities in choosing board members to fill vacant seats. Board members expect their fellow board directors to be willing to ask tough and probing questions to vet all sides of an issue. Board directors need to be well-informed and fully engaged with all major issues that affect the corporation.
When corporations hit bumps in the road, all fingers typically point back to the board of directors. Board directors must be willing to act quickly and responsibly when they need to take action to comply with fiduciary responsibilities or to uphold good governance standards. Board members need to stand ready to thwart potential crises and to manage developing crises, so they don’t adversely affect the corporation.” (emphasis mine)
To Whom Are We Accountable?
Let’s focus on that word “fiduciary” for a moment.
First, a definition of that word from the dictionary:
“From the Latin fiducia, meaning “trust,” a person (or a business like a bank or stock brokerage) who has the power and obligation to act for another (often called the beneficiary) under circumstances which require total trust, good faith and honesty.” (emphasis mine)
Question: Who is the beneficiary of a business?
In a for-profit business, the answer is easy: the beneficiary is the owner(s) of the business.
What about for non-profits like Pregnancy Help Centers? Who is the beneficiary of a PHC?
I think the answer to that question is obvious, but I have discovered in conversations with various PHC executives, Board members, and benefactors (donors, if you like) that there is a broad range of opinions on this question.
Some will tell you that the beneficiary of a PHC is the abortion-seeking woman whom the PHC serves.
Others will tell you that the beneficiary is the team that operates the PHC.
And I think in the minority are those who believe, like I do, that the beneficiary is the pro-life benefactor (donor) who provides philanthropic capital (money) to the PHC so that it can pursue its mission.
Lack of Clarity Breeds Confusion
To go even a step further about this disagreement on who is the beneficiary of a PHC, if you ask the benefactors (donors) of any given PHC if they think the PHC and its Board of Directors have a fiduciary responsibility to pursue what is important to the benefactors (donors), I believe many will get a puzzled look on their faces like, huh?
I’m not exactly sure why this is, but I think it might be related to something psychological with “charitable giving” which is very “other-oriented,” versus typical consumer consumption which is oriented toward one’s self.
I think many folks who give a $10 charitable gift to an organization do not expect anything in return; but those same folks who buy a $10 item at the store demand that the item provide them a specific benefit in exchange for their money.
If I am correct about this dynamic, in general (yes, I realize there are some philanthropists who expect a return on their gifts), then I think it hurts the competitiveness of PHCs.
Who Is Accountable for What?
If a charitable giver does not demand a return on her gift to a PHC, in the same way that she would demand a benefit from an item she purchased in a store, then the PHC leadership (Board of Directors and Executive team) will not receive clear signals about what is expected of them.
Without clear expectations about who the beneficiary is, and what that beneficiary demands, there will be a wide range of opinion among PHC leadership about who is accountable for achieving what end.
Having worked with the Board of Directors of several PHCs, I think that accurately describes the leadership environment of most PHCs.
What do you think would happen if all of the benefactors of a specific PHC made it abundantly clear to the leadership of the PHC that the benefactors demanded a return on their charitable investment – specifically, competitive success against Planned Parenthood as measured by an increase in market share of abortion-minded women who choose life instead of choosing abortion?
One thing I am sure of – that demand would shake things up dramatically at most PHCs.
We’ll dive into that next week.
Regards,
Brett