The Scariest Board Risks! Revealed by Countess Justine Townsend
In this Halloween-themed episode of #TheNonprofitShow, host Julia C. Patrick is joined by ‘Countess’ Justine Townsend of Your Part-Time Controller (YPTC), who helps transform board governance fears into empowering, practical insights. Capes, cobwebs, and clever metaphors aside, the lesson is real: fiduciary duties aren’t folklore; they’re law. As Justine explains, “you have a legal and ethical obligation to act on behalf of the organization with their best interest in heart.” Miss that, and the consequences can rattle a boardroom harder than a thunderclap.
Duty of care is the first responsibility of any board member: show up, review the financials, ask questions, and make informed decisions. But beware the “ghost board member”—present in name only—who overlooks a growing payroll tax liability. When federal authorities come knocking, there’s no hiding in the attic. Justine Townsend of YPTC offers a chilling reminder: “D&O insurance does not cover unpaid payroll taxes.” That’s a real-world jump scare boards can’t afford to ignore.
Next is the duty of loyalty—less about blind allegiance and more about putting the organization’s interests ahead of your own. Enter the “vampire board member,” pushing a property sale that benefits them more than the nonprofit. The cure: annual conflict-of-interest disclosures, board recusals, and transparency. Bonus: checking the policy box (and posting it on your website) earns trust points with watchdogs like Candid.
Finally, the duty of obedience. No, not the toddler version. This means honoring laws, policies, donor restrictions, and—crucially—the mission. Beware the “zombie board member,” shambling after “money, money, money” while letting programs drift off-mission. That’s how donor restrictions get broken and how repayment claims can rise from the grave. File the Form 990 on time, disclose program changes, and keep mission, vision, and values stitched tightly together.
Throughout, Julia and Justine keep it witty and useful: schedule your COI renewals before year-end, disclose changes on the 990, and use fiscal sponsorship wisely during early program stages. The closing charm? A simple mnemonic: care (do the work), loyalty (put the org first), obedience (follow the rules). With that, your board won’t just survive spooky season—it’ll thrive all year.
