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The Hidden Risk Nonprofit Boards Keep Missing

The Hidden Risk Nonprofit Boards Keep Missing

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 In this episode of the Unfiltered Nonprofit Podcast, our conversation with Angela Fenton, former board Chair of Pleo, went well beyond board mechanics. What really surfaced was the hidden cost of instability — not just to organizations, but to the people leading them. Angela spoke candidly about Executive Directors living in a constant cycle of "we have funding / we don't have funding," and how that emotional whiplash becomes a health risk, not just a leadership challenge. That framing matters. When boards delay decisions around sustainability, they aren't just managing cash — they're transferring pressure directly onto one person. Another underappreciated insight was how boards often misjudge risk. Angela described situations where boards hesitated to spend reserves on a fractional fundraiser because of fear — fear of depleting cash, fear it wouldn't work, fear of being wrong. But she reframed the real question: what is the risk of not investing? Staying understaffed, relying on an already stretched ED, and hoping the funding picture improves on its own isn't neutral — it's a decision with consequences. In this case, the board accepted short-term discomfort to create long-term capacity, giving leadership space to plan instead of constantly react. The episode also highlighted something boards rarely formalize: who carries the thinking load. Angela described how, without intentional support, EDs become the default strategist, fundraiser, operator, and emotional shock absorber. Her board made deliberate choices — allocating professional development funds, embedding future-focused conversations into performance reviews, and involving finance partners early — to redistribute that load. Not because it was generous, but because it was necessary for sustainability. The real insight here is this: good governance isn't about control, and it isn't about caution. It's about absorbing risk at the board level so it doesn't collapse onto staff, and making investments before burnout or crisis forces your hand. For boards and leaders reading this, the harder question isn't "Can we afford to do this?" It's "Who is paying the price if we don't?"
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