Why background checks make good sense

A quick Google search can uncover many instances of nonprofit boards “gone bad,” where everything from misappropriation of funds, bullying or harassment has occurred. Organizations committed to keeping their boards collegial, supportive and effective need to pay particular attention during the onboarding stage. Specifically, use background checks when “hiring” board members.

Background check gap

Some nonprofits are hesitant to use background checks on board members. This reluctance is understandable but misplaced. For example, it’s true that board members usually are established community members and professionals who often are recommended by people close to the organization. But esteemed individuals are hardly immune to bad behavior. In fact, perpetrators frequently leverage their positions of trust to carry out illegal schemes.

Nonprofits also may find informing a board candidate that they’re doing a check to be awkward. Board members should support such measures, though. It’s a sign of good governance that should reassure them and other stakeholders.

Finally, as with so many matters confronting nonprofits, limited resources may be a factor. Effective background checks can be expensive and time-consuming. Smaller organizations in particular can struggle with this issue, but the reasons for their hesitation are the very reasons background checks are so important. Limited funding and staff often translate to greater reliance on board members, which in turn means the board has access to more information and greater opportunity for wrongdoing.

Keeping standards high

Here’s why performing background checks is important. Misrepresentations about education or other past achievements can raise a red flag about an individual’s integrity and character. Falsehoods can also reveal that a person isn’t qualified for a board position that requires certain credentials or experience.



Running a check may limit your liability for a board member’s misdeeds or crimes as well. It can be evidence that you conducted reasonable due diligence, thus potentially limiting any liability for the board member’s actions. Further, bringing on reputable board members can provide stability by reducing board turnover. Background checks also send a clear message about your nonprofit’s high standards and expectations.

Degrees of diligence

The depth of a board member’s background check will depend on several factors, such as your organization’s risk tolerance and the member’s anticipated role. Individuals who will have financial responsibilities and access to bank or brokerage accounts warrant more thorough checks — as do those who will work directly with your clients. This is especially critical if you serve vulnerable populations, such as children or the disabled.

At a minimum, search public records. Bear in mind, though, that these records might not reflect litigation and criminal convictions in every state. Also, don’t forget that arrests aren’t the same as convictions. Charges may have been dropped. In general, a comprehensive background check should also verify:

• Employment and education,
• Military service,
• Driving records,
• Personal and professional references, and
• That they don’t appear on sex offender registries.

Regardless of your check’s scope, free online background checks aren’t recommended. The results typically are incomplete, out-of-date

and inaccurate. They may even cover the wrong person. You also shouldn’t perform your own web and social media searches. The results will likely have similar problems. You could inadvertently expose your organization to discrimination claims, too, if you find information that places an individual in a protected class. Antidiscrimination laws generally don’t apply to volunteers, but any such allegations can shine an unfavorable light on a nonprofit.

Instead, engage a qualified service that complies with the Federal Credit Report Act. The Federal Trade Commission has indicated that the law’s requirements may apply to situations where an entity uses individuals who aren’t technically employees to perform duties — including nonprofits staffed in whole, or in part, by volunteers.

Protect yourself

Background checks are no guarantee that a board member is reliable. But they should be an integral part of your nonprofit’s risk management program. And remember that background checks aren’t a one-off exercise. Update them on a regular basis — such as every two years.