Q&A with David M. Rottkamp: His Story of Passion, Expertise and Leadership

nonprofit advisorIn this in-depth Q&A, meet David M. Rottkamp, a dedicated leader of Grassi’s Nonprofit practice. He shares his 36 years of nonprofit expertise and offers valuable advice on board governance, nonprofit challenges, and diversity initiatives.

Q: What made you start working in the nonprofit sector?

A: Over 36 years ago, I started my first professional CPA job at a firm that only did nonprofit work. Within a week, I felt connected to the industry and never looked back.

Q: How have you seen the nonprofit sector evolve over your career?

A: Over the past 36+ years, I’ve seen the number of nonprofits double. The sector has become a vital fabric of our Society, addressing growing community needs. Nonprofits have become larger, better organized, and more professionally managed. Today, the nonprofit sector is a mainstream business, playing a massive role in our Nation’s economy and growth.

Q: What are the most significant challenges facing nonprofits today?

A: One main challenge is financial sustainability, as there’s an increased need for services in our communities but not enough revenue generation to support those needs. With so many more nonprofits, there is competition for charitable dollars. Retaining and recruiting talented staff is another significant challenge. Nonprofits often need help attracting and retaining qualified employees due to compensation and other constraints. Another significant challenge is organizational and board leadership succession, as organizations need help developing the next generation of nonprofit leaders.

Q: How has your professional experience benefited the boards you serve on?

A: My extensive experience in the nonprofit sector allows me to bring financial knowledge that most board members still need to gain. I can share insights from working with hundreds of nonprofits over the years, offering best practices and different perspectives on how to approach challenges and opportunities.

Q: How do you balance your professional career with serving on five boards?

A: It’s about time management and passion. I’ve always believed in giving 100% to my volunteer work while maintaining my professional responsibilities. Sometimes, it means sleeping a little less or getting up earlier, but you find the time when you’re passionate about a cause— knowing your limits and when to say no to additional commitments.

Q: What advice would you give someone considering a board role?

A: Do it! Don’t be afraid to join a board, even at a young age. Your experiences and opinions have value. Understand the time commitment required and ensure you can balance it with your professional responsibilities. In your first year, focus on listening and learning before asserting yourself as an expert.

Q: How can nonprofits demonstrate their impact on donors?

A: Today’s donors, especially younger ones, want to see the impact of their contributions. Nonprofits must create comprehensive impact reports, utilize their websites effectively, and develop clear documentation showing potential donors exactly how their money will be used. It’s about telling a compelling story, creating an emotional connection, and clearly demonstrating the organization’s impact.

Q: What makes for effective board governance in nonprofits?

A: We provide extensive education and training on this topic. Effective board governance involves engagement, understanding fiduciary responsibilities, knowing state laws where the nonprofit is located, and balancing support and oversight. Board members must know when to stay in their lane and when to step up to help the organization. It’s crucial to have a diverse board that represents the community the nonprofit serves.

Q: How are nonprofits addressing diversity, equity, inclusion, and belonging (DEIB)?

A: The nonprofit sector has largely embraced the DEIB philosophy. Many organizations are creating and implementing formal policies. However, it’s crucial to go beyond just having a policy—it needs to be a philosophy everyone in the organization follows, from management to staff to the board of directors. This means being open to diverse perspectives, ensuring all constituents feel heard, and making decisions considering multiple viewpoints. A key aspect is ensuring the board of directors represents the people the organization serves. For instance, if you’re running an after-school program in an inner-city neighborhood, it’s vital to have board members who understand the community’s challenges and can provide relevant insights.

Q: How does your board service experience benefit your clients?

A: My board service experience allows me to bring a unique perspective to my clients. This experience adds a level of trust and credibility when I’m speaking with committees, board members and executive leadership. It allows me to present and communicate information differently to boards. Instead of just reading numbers from financial statements or other documents, I can explain what those numbers mean in a broader context and provide strategic insights.

Q: What’s your most valuable lesson about nonprofit board service?

A: The most valuable lesson I’ve learned is knowing when to stay in your lane and when to step out of it to help the organization. Effective board engagement is about finding the balance between listening and contributing. It’s crucial to be engaged but not to the point of dominating discussions or micromanaging. Effective board members listen actively, offer valuable insights based on their expertise, and support the executive leadership team in achieving the organization’s strategies and objectives. It’s about using your skills and experience to help CEOs, CFOs, and fellow board members be successful in meeting their goals, all while keeping the organization’s mission at the forefront.