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Flawed boards

Posted: 29 November 2001 | Subscribe Online


Is it time for charities to shake up their leadership structures and introduce more professionalism to their boards of trustees in light of modern demands from the state, asks Anna Coote.

An irreverent colleague once remarked that the governing boards of voluntary organisations come in four categories: bar room, elevator, asylum and heaven's gate.

The first is where like-minded people get together to socialise and plot. It is found in the smaller, more radical type of charity - a chaotic but creative body. The average age of trustees is under 35 and they are in it for fun as well as for the cause. They are erratic employers of staff with whom they enjoy stormy but largely egalitarian relationships. They provide energy and direction, working closely with the chief executive, who tends to be one of their own kind. Love affairs and life-long friendships are forged between and during meetings, not always to the benefit of charity business.

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The second is for high flyers. They are talented, often rich and already well connected. They arrive in taxis and leave early for a book launch or the opera. They have access to ministers and provide intellectual ballast and middle-aged glamour as well as routes to wealthy funders for the organisation, which tends to be a middle to heavyweight charity with a strong national profile. The average age is under 55. Frantically busy, they have a short attention span and are generally more interested in each other than in the staff of the organisation, with whom their relationship is essentially feudal. They seldom retire from the board without a peerage.

The third is for odd-balls and zealots who gather around the board table like street drinkers around burning pallets on a chilly night. The average age for trustees in this category, which can be found in almost any outfit where philanthropy is stronger than professionalism, is under 65. They bring together a collection of enthusiams and obsessions, from different walks of life and corners of the country. Sartorially diverse and more than averagely hirsute, they are deeply conscientious and capable of paying extraordinary attention to detail. They adore a good argument and are not afraid to speak their mind, at length and repeatedly. They may be loved by members of staff, but for the chief executive, they are a nightmare to manage - a task only made possible by the fact that they seldom agree with each other.

The fourth is a resting place for those who have served a lifetime and earned a perch among senior dignitaries. The average age is under 85. They are there because no-one would dream of asking them to move on. Some are legendary figures while others are less easily accounted for. They supposedly bring to the table a blue-chip gravitas that chimes well with the more conservative breed of philanthropist. They are not sure who works for the organisation, which is likely to be a traditional charity of ancient lineage. They cause the chief executive little trouble, governing with a light touch and gently enjoying themselves.

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At different times in my career, I have served on, chaired, worked for and even inaugurated various boards of trustees. My over-riding impression is that the trustees are never sure what is expected of them and the staff see them as an irritant rather than an asset. At a basic level, trustees are there to ensure that charities are run according to their stated objectives and no one pilfers the funds. A common view is that it doesn't matter who they are as long as they are not a discharged bankrupt or convicted fraudster.

The Charities Commission advocates a more considered approach to trustee appointments: analyse the skills required, work towards an ethnic, gender and age balance, throw the net wide to avoid cronyism and make sure recruits know what they are letting themselves in for.

Charities and other non-profit organisations are now operating in a more challenging environment than ever before. They are under increased public scrutiny and facing new financial pressures. They have to cope with rapid technological change and many are taking on new responsibilities as public services are restructured. This suggests a need for more effective, innovative leadership at board level, right across the voluntary sector. CC

- See feature page 28

Anna Coote is director of public health, The King's Fund.



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