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CLUB MATTER

February 2003

I'm sure the better question would be, "Who twisted your arm hard enough to make you run for the board?"

Well, like most of you, I'm a victim of the same kind of "encouragement." I was recently asked to consider being the at-large member of the board for my daughter's swim team. The next thing I knew, I got the minutes and there it was in black and white — I had been "appointed"

Just like you, I find myself in this position to serve. Serve whom I might ask? It's not only myself, but all of you. Who do we serve by holding a seat on the board?

We, the board members, are the caretakers of the club. We are duly elected or appointed to serve the best interests of the "entire" club, not the interests of our own children. This is a tough one I know, but if you have accepted the responsibility of serving on your club's board, you have to accept the legal and ethical responsibilities that come along with the job.

According to nonprofit corporate law, a board member must meet certain standards of conduct and attention to his or her responsibilities to the club. These are referred to as the duty of care, the duty of loyalty and the duty of obedience.

Duty of Care

Duty of care means using your best judgment. You have relied on the information provided, asked questions when you did not understand, and used reasonable caution and care in your decision-making process.

Do you read the minutes and financial statements? Do you ask questions when something doesn't seem right or you don't understand something? This is pretty critical. As a board member, you are the caretaker for the organization; the future of the clubs depends on you and how well you execute your duties.

Duty of Loyalty

Duty of loyalty means putting your personal and professional interests aside for the good of the club. Having a conflict of interest policy that is signed and adhered to is important. Many people who have conflicts serve on boards every day. As a parent of a child on the club, I now see how this can be perceived as the biggest conflict of all.

Consider that you are voting on how much money to give to athletes for travel, and your child stands to benefit from that decision. Wouldn't you think this might be something you should abstain from voting on? It's funny to me that so often we perceive coaches as having a conflict of interest, and our eyes are blind to our own conflicts. The point is to be honest with yourself and fellow board members and abstain from voting on areas of conflict. In this way, anyone — whether coach, parent or judge — can serve the board in an honest way.

Duty of Obedience

Duty of obedience means being true to the club's mission. Club members and club donors have the right to expect that funds are being used for the stated purposes.

This duty also means that as a board member you are ensuring that the club is following all laws and regulations that may apply to nonprofits. This includes paying taxes, filing the correct forms in a timely manner and public disclosure of information.

The current terminology for this is referred to as being "transparent." This means that club finances and how the club is conducted is not a secret. Being open and honest is best. Adopt an attitude of openness and you won't believe how much your club will improve.

I leave you with a challenge. Take these three duties to the next board meeting and do an exercise on how the entire board carries out these legal responsibilities. I know it has made me think harder about the responsibility of serving.

If you are a board member, thanks to you for all of your efforts and volunteer time. I know our families think we are crazy at times, but I could not think of a more worthwhile way to serve our sport and our children. Thanks again for all you do.

This article was adapted from Club Leadership Development, a publication of BoardSource, formerly known as the National Center for Nonprofit Boards. For more information on BoardSource, visit www.boardsource.org or call 800.883.6262.