PR Capacity On Nonprofit Boards

Public Relations on Nonprofit BoardsGVSU Johnson CenterOctober 28, 2015

Dr. Tim Penning, APRGrand Valley State University

Some theory backgroundAgency TheoryPresumes conflict between board and executivesTherefore board role is monitoring executives for stakeholdersDependency TheoryBoard members provide resource the organization needs for growth or survivalTherefore board members are selected based on their skills or knowledgeStakeholder TheoryStakeholders are anyone who has interest in and/or is affected by organizationIn PR stakeholders also called publicsOrganizations that value stakeholder relationships more are more likely to see board role includes boundary spanning

What is PR?Public Relations is.a strategic communication process that builds mutually beneficial relationships between organizations and their publics(2012, Public Relations Society of America)

Strategic communication process= Mutually beneficial relationships =Organizations= Publics =

PR Process R.A.C.E.Research = clarify or define the PR problem or opportunity

Action Plan = A comprehensive plan to address problem/opportunity. Focus is on measureable objectives and communication strategies

Communication = The specific PR tools (tactics) used to execute the plan and reach the identified publics

Evaluation = A quantified measure of whether the campaign achieved outcome objectives stated in action plan

Typical nonprofit board rolesMission and planning**Financial stewardshipHuman resources stewardshipPerformance monitoring and accountability**Community representation and advocacy**Risk management**

Source: GSAC: Governance Self-Assessment Checklist**Note how roles relate to public relations

QUESTIONS FOR STUDY:1: What specific board member capacities are considered important by nonprofit leaders?2: To what extent do nonprofit leaders see communications skill and experience by board members to be important compared to other board capacities?3: Is there a difference in the size of nonprofit organizations (in number of full-time employees) or the size of its board in terms of whether or not any board member has PR expertise? 4: Does the manner by which board members are selectedappointed by the president or nominated by a board committeeaffect whether at least one board member has PR expertise?

THE STUDYOnline survey of 704 nonprofit executives in a Midwestern stateList from GVSU Johnson Center for Philanthropy 215 responses, 30% response rateFinal sample 167 to remove duplicates (same organization) or non-executive respondents

Results: respondent profile88% select board members through nomination by current board12% have executive director appoint board membersOrganizations either very small (40% 0-5 employees) or large (24% 25 or more employees)Board size varied greatly: 9% 4-6 members; 27% 7-9; 24% 10-12; 15% 13-15; 22% 15 or more.

Results: capacity soughtBoard member capacity%NKnowledge of cause89.3%158Financial management82.5%146Communication with stakeholders76.3%135Position in community71.2%126Management expertise69.5%123Access to financial resources68.4%121Legal counsel58.2%103

N= 177. Respondents could choose more than one answerCommunications is #3

Results: most important capacitiesBoard member capacity%NKnowledge of cause40.4%74Access to financial resources19.1%35Position in community13.1%24Communication with stakeholders11.5%21Management expertise8.2%15Financial management6.6%12Legal counsel1.1%2

Total N= 183. Respondents could choose only one answer.When forced, communications is #4

ANSWERING THE QUESTIONS1: All capacities valued to a degree, but knowledge of cause and financial management received strongest support.2: While communications/PR is valued generally, compared to other board capacities it is 4th (11.5% said most important)3: There is a weak correlation between number of employees and PR capacity on board (size of organization); a strong and significant correlation between number of board members and PR capacity on board (size of board).4: No significant difference in whether board nominated by board or appointed by executive director

Nonprofit life cycle and PRFrom need for survival to personalized leadership, growth, formalized structure

Interesting notes A nonprofit leader valuing communication with stakeholders did not necessarily lead to board members with PR capacity. Executives viewing PR as two-way symmetrical did not necessarily lead to an organization having a board member with PR capacity. Executives viewing PR as two-way symmetrical did not necessarily lead to an organization having a PR staff member who reports to the executive and communicates with the board.

discussionExecutive value of PR role for board emerges in mature organizations beyond entrepreneurial and survival stage, when knowledge of mission, access to finances and position in community are stressed more. (Resource dependency theory)Organizations with more employees and board members are more likely to have PR capacity on the board, reflecting the reality of engaging more publics/stakeholders and necessitating PR skills.No difference in how board members appointed, but most in this sample are nominated by current board members, possibly meaning perpetuating current values.

DiscussionExecutives value communicating with stakeholders but also 75% see PR as getting the word out and not a more sophisticated view of the profession. This may lead to a view that PR is handled by technicians on staff and not a necessary management capacity for board members.The fact that PR capacity not more evident on boards may simply reflect reality of nonprofits: they have a narrow view of PR and limited budget for it.

Benefits of real prVolunteer and employer recruitment and retentionNew, potential, and repeat donors i.e. sustainable financial basisCollaboration, mission accomplishmentReaching the public you serve

PRACTICAL ADVICEDemonstrate full value of PR to executivesOffer to present to board on key organizational goalsFocus on strategy over tacticsAdvocate for face time with executive and boardSpeak about leveraging board members as nonprofit ambassadors and relationship buildersSpeak to importance of ALL stakeholdersDo a capacity survey of current board and point out gaps

QUESTIONS OR COMMENTSPresentation available at:

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Slides availablepenningt@gvsu.edu

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