My organization just elected a married couple to its board. Is this ethical?

In most circumstances it is ethical, but often unwise. I usually advise against it but I sit on a board myself that has not one but three married couples! My spouse chooses not to join but would be welcome if he changed his mind.

Let’s start with the circumstances under which having family members together on a board might be unethical.

I witnessed one situation where a common-law couple with different last names were nominated from the floor (another mostly unwise practice). The nominator knew they were a couple but told no one and they did not mention in their remarks. Many members were openly disgusted when they learned about the connection, and felt hoodwinked that something they would have factored into their voting had been kept from them. The secrecy was deemed unethical by almost everyone. If people on a board are related, the relationship should be transparent.

In some cases, the executive director is also a board member, and is related to a board member — sometimes even the chair! Governance folks usually consider this questionable since it is SO much more difficult to properly guide and evaluate the ED’s performance. That increases the likelihood of public funds being less effective in making the community better. Directors who are not part of the family relationship will not feel safe speaking up if their remarks are even slightly negative. This situation may be just as problematic if the related ED is not on the board, but that situation would be tangential to the question. I will acknowledge that there are numerous major nonprofits in this situation that appear, from the outside at least, to have found ways to make the situation work just fine. However, they aren’t on my list for charitable giving.

I have also seen situations where one family member does not carefully think things through and merely echoes whatever views the other member of their family expresses. Voting independently is a necessary part a director’s duty of care.

I have seen a board where two family members collaborated to bring in other very close friends and relatives, stacking the board until unrelated directors were a minority.

Finally, I have seen too many situations where a family member abandons their responsibilities to the organization because another family member is upset with the organization. This too is a failure of the duty to care; resignation would be a better option.

Given these issues, why do so many boards have multiple family members? Here are some valid reasons:

• Some good volunteers do not want to spend more time away from their families. They will only volunteer if they can come together for board service, just as they might for other forms of volunteering.
• The inclusion of younger family members helps continue a legacy and train the next generation.
• Board members need to trust one another, and a trust relationship may already exist among family members.
• Boards want to know who will work hard and meet their commitments; they may know this about a family member.
• Some boards are made up of friends who also socialize with each other, and want to do so with their spouses, perhaps right after board meeting. That’s part of the thinking in my small arts organization; fostering music circles and conventions are why we exist and we often make music together after a meeting — my husband comes with his guitar as the meeting ends.
• One spouse may be the car driver, and the other cannot get to the board meetings without car transportation (often an issue in regional and provincial organizations).

 

Do I think these reasons are good enough? Probably yes for a family foundation, although I believe many such foundations now require the founding family to be in the minority on the board. Probably yes for a hobby or community group, particularly if the pool of potential board members is small.

However, I think these reasons are not sufficient to make up for the serious issues that family relationships cause in a charity or a work-related association:

• Board members should do outreach to find more donors, volunteers and other supporters. The circles of people that family members know usually overlap far too much, and this makes the board less effective at ensuring the organization has the resources it needs.
• Board members need to bring a wide range of knowledge and experience to the table to help everyone make better decisions. Family members likely share too much, such as socio-economic status, geographic location and ethno-racial background. This reduced diversity harms the quality of decision making and leadership.
• Other board members will be intimidated about dealing with a non-performing or problematic board member, especially if it might mean upsetting another director they rely on.
• All too often, related directors both resign when one gets angry with the organization, or the family simply moves away, and the board has to deal with the effect of two unexpected vacancies at once.

 

For the majority of nonprofits, particularly incorporated ones, the risks and issues are significant enough to avoid all family relationships on the board. Make other arrangements for travel, socializing and such. Put community engagement and high quality guidance for the organization ahead of the comfort of having a spouse, sibling, child or parent across the table. But make exceptions when family board service is the best way to achieve the mission.

Since 1992, Jane Garthson has dedicated her consulting and training business to creating better futures for our communities and organizations through values-based leadership. She is a respected international voice on governance, strategic thinking and ethics. Jane can be reached at jane@garthsonleadership.ca.

To submit a dilemma for a future column, or to comment on a previous one, please contact editor@charityvillage.com. For paid professional advice about an urgent or complex situation, contact Jane directly.

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