The Bluegrass and Beyond

Serving on an organization’s governing board can be an honor, a status symbol and a networking opportunity.

It’s also work, responsibility — and liability, if things go wrong.

There’s a lot of focus now on the responsibilities of boards and board members, thanks in part to increased government oversight. Not to mention recent scandals at some non-profit organizations and Herald-Leader investigations that found waste, fraud and abuse in several quasi-governmental organizations and inadequate oversight by their boards.

None of that should scare good people away from board service. In fact, this economic downturn means organizations need good board members more than ever. Board members just need to know what they’re getting into — and what to do once they’re serving on a board.

Fortunately, many groups now provide training. I recently attended one session sponsored by Women Leading Kentucky.

The session featured Danielle Clore, executive director of the Nonprofit Leadership Initiative at the University of Kentucky, and a panel of veteran board members: Paula Hanson, a partner in the accounting firm Dean Dorton Ford; Lyle Hanna, president of Hanna Resource Group; and Jack Kelly, CEO of WealthBridge Connect and former CEO of the 2010 Alltech FEI World Equestrian Games.

“People join boards for many, many reasons,” said Clore, who now gives several presentations a week on good organizational governance. “There’s a lot of glory when things are going well, but the buck stops with you when things are not going well.”

They offered a lot more good advice than I have room to report. But here are some highlights:

■ Organizations, especially non-profits, want board members who are passionate about their cause and generous with their time, talent and financial support. If it’s not an organization you want to give money to — or raise money for — don’t agree to serve on the board.

“Make sure it’s an organization that means something to you, and that it’s not just something to look good on a résumé,” said Linda Breathitt, who has served on many government, corporate and non-profit boards.

Clore recommended becoming active in an organization and its committees before agreeing to join the board. “Committee service is the best way to date before marriage,” she said.

■ When you’re asked to join a board, ask questions. Ask about expectations of board members. Ask for an orientation and a copy of the organization’s bylaws, financial statements, audits, and policies on conflicts of interest and financial governance.

While state law protects board members who are informed and operating in an organization’s best interests, groups also should carry board liability insurance to cover legal expenses in case of lawsuits.

■ Once you join a board, show up for meetings and do your homework. Read agenda materials before meetings, and ask questions about anything you don’t understand.

“It’s part of your job to ask questions,” Clore said. “I don’t know if it’s a Kentucky thing, but we are just way too polite. We need to get comfortable with a culture of inquiry.”

Board members are there to supervise and support an organization’s CEO. They shouldn’t micro-manage, but they must remember that they are ultimately responsible.

■ Hanson said strong internal controls over an organization’s finances are vital. There’s no way to prevent theft — sometimes people who steal are the ones everyone trusts the most. But good internal controls will usually catch theft and mismanagement. Budget variations can be a red flag.

■ The session’s leaders also had a lot of good advice about how boards should operate, including that they should review recommendations issued recently by State Auditor Crit Luallen.

“One size doesn’t fit all, so every board may not need to adopt each recommendation in the auditor’s report,” Clore said. “But every board should discuss them.”

• For more information

  Nonprofit Leadership Initiative: www.kynonprofits.org, Danielle Clore, danielle.clore@uky.edu, (859) 257-2542

  State Auditor Crit Luallen: Recommendations for Public and Nonprofit Boards, www.auditor.ky.gov

  Women Leading Kentucky: www.womenleadingky.com; Janet Holloway, executive director; jholloway@womenleadingky.com, (859) 422-6395

  BoardSource: www.boardsource.org

  Nonprofit Risk Management Center: www.nonprofitrisk.org

I know the real reason those nice people behind the betting windows at Keeneland always smile when I walk up: I’m no good at handicapping anything.

But this time, I think I’ve picked a winner.

I was asked to handicap the Herald-Leader’s Most Intriguing Kentucky Newsmaker of 2008 contest. I began by ruling out horses, the frog, the tree, the music club and people who could be punch lines for Jay Leno.

I’ve admired the 300-year-old bur oak tree on Harrodsburg Road since childhood. And it’s hard not to appreciate the determination of the filly Eight Belles or the longevity of Jojo the frog. But intriguing? I don’t think so.

I’ve followed the CentrePointe controversy closely, so I thought about going with the tag team of Dudley “back to the ’80s” Webb and Jim “we can do better” Gray.

I’m intrigued by smart people such as Gray, State Auditor Crit Luallen and Alltech founder Pearse Lyons, the Irishman who is one of Kentucky’s true visionaries.

Nancy Jo Kemper gets points for always having the courage of her convictions.

Olympians Elaine Breeden and Tyson Gay made us proud in Beijing.

But the Kentuckian who intrigues me most is Adam Bender, the Lexington boy who hasn’t let a missing leg slow him down, much less stop him. He inspires everyone by just being himself. And I suspect we haven’t seen anything yet.