Last week’s New York Times article, Romancing the Stars, describes how some New York arts organizations have gone a step further in seeking celebrity support by asking them to sit on their boards.

I cringe every time I read about a celebrity joining the board of an organization.  Board members are trustees and each board member is equally accountable for insuring that the organization is properly governed. These roles include:

• Determining the Organization’s Mission and Purpose
• Selecting the Executive
• Supporting the Executive and Reviewing His or Her Performance
• Ensuring Effective Organizational Planning
• Ensuring Adequate Resources
• Manage Resources Effectively
• Determine and Monitor the Organization’s Programs and Services

I doubt if most celebrities realize that if the organizations fails to pay its payroll taxes the individual board members are legally liable or if the organization is in debt and has to close, the board is the body to blame.  If an organization wants to engage a celebrity they should consider asking them to be on an honorary board or co-chair of an advisory body to the board.

I recently read of a much celebrated merger earlier this year that has now been called off. The reason? Donors were opposed. Periodically I hear of these “jump the gun” announcements, which are usually followed by embarrassed back-pedaling. Each time I just shake my head and ask “Why do these nonprofits feel such a rush to announce their mergers –arguably the biggest announcement they could make short of dissolution – before they have a final decision.”

It is not as though Wall Street analysts are watching. And it is certainly not the case that making the announcement speeds up a positive resolution. Instead I think these ill-advised premature announcements usually come from modeling the nonprofit merger on a corporate merger. In the latter the CEOs work out a deal, mostly around finances, the boards quickly approve it, and then the staffs are left to work out the details. The difference of course is that in a nonprofit context subtle political details can kill the deal. Without large sums of money to throw around in an effort to un-ruffle feathers, and with the high degree of loyalty and identification many nonprofit board, staff and donors feel to their institution, there is always risk of a back fire.

In the hundreds of mergers we have advised on at La Piana Consulting we have never to my knowledge had this experience, mostly because we warn our clients not to make premature announcements. It is a pretty simple lesson.