This may seem a bit alien to finance and small business management, but bear with me. A few years ago, a couple of people recommended that I step up my involvement with nonprofits through board membership. I was not ready. He had too much going on and too little time to devote. I wanted the time I spent volunteering to directly help recipients. So I was a tutor, a mentor, and occasionally spoke at churches and nonprofit conferences. Last year I finally had the time … and the desire.

Why did these people recommend participating in forums, and why am I recommending it to you as a small or medium-sized business owner? First, I believe it is important to give back to the communities in which you and your business (s) operate. Giving back helps balance a company’s overall mission and deepens the company’s commitment to interacting with its customers and employees. Second, board membership provides the opportunity to interact with senior career people (other owners, vice presidents, executive vice presidents, CEOs, C-suite level) who have different backgrounds and perspectives than yours. This difference in perspective can help you see your business problems from a different perspective, and that alone can be invaluable. Third, assuming the board has good synergy, you build a sense of team and strengthen your network. That network can help you grow your business organically, offer new products or services, or seek acquisitions. You never know who may present on an account you would like to have or connect you with a potential partner.

Lastly, participation in the nonprofit board can help you grow as a leader. As an owner and usually as CEO and / or president, especially if you are the sole owner, you may not be as adept at working as part of a team of colleagues as before (assuming you have been an employee in some time before). ). Participating in a board will improve the skills of your team. You will also increase your knowledge of a number of functions: marketing, finance, legal, and employee relations, which are directly relevant to running your business.

If you decide you would like to serve on a nonprofit board, look for those that address the causes you are passionate about or provide the types of services that really interest you. If you love sports, you’d be bored sitting on a homeless shelter board, but participating in a pop warner or little league board would be a good option. Keep in mind that most, if not all, nonprofits have a minimum donation requirement for the directors of their boards of directors. Sometimes that amount is $ 500 or $ 1,000 for smaller nonprofits. For large nonprofits like hospital boards or the United Way, the minimum donation requirement can be $ 25,000 or more. (This is why vice presidents of large corporations are often seen as the primary members of these boards. The corporation, not the vice president, makes the donation).

If you’re not sure where to start, as there are literally thousands of nonprofits in any large metropolitan area, get started with the United Way. They provide funding to tens of thousands of nonprofit organizations across the country. They will have a list of nonprofits in your area that fit your criteria.

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