A nonprofit’s board of directors sets the organization’s direction. They set the tone and directly impact the organization’s ability to live its mission. So if they aren’t operating effectively, your organization’s risk of doing something wrong or even failing increases.
Consultants Nancy Owsianowski and Charmaine Torma joined us and a group of nonprofits to talk about board effectiveness. What they talked about can help organizations with different sized boards and different operations. They are some of the best practices and considerations to help make boards more effective. We’re pleased to share some of their lessons here.
Who Is Responsible For Board Changes?
Technically, the board is. But an executive director or other nonprofit staff can work with board officers, encourage discussion, share suggestions, or bring in a consultant like Nancy or Charmaine to present at a board meeting or retreat. If the goal is to be the best-governed nonprofit you can, then responsibility for an engaged and effective board can’t fall only to unpaid volunteers, which is typically who makes up a nonprofit board.
What Is the Board's Purpose?
Understanding the board’s purpose is essential to ensuring its effectiveness. According to Charmaine the board’s purpose is to ensure the organization is on track with the fulfillment of its mission and vision, while complying with all federal and state laws.
Does your board keep its focus on the organization’s mission and vision? Do the directors even know what the organization’s mission and vision are? If not, your board cannot measure its effectiveness at its essential purpose. So it’s important to clearly articulate the organization’s mission and vision and remind directors of them regularly at meetings.
Structuring Your Board
Studies set the optimal size of a nonprofit board at five to eight members. Adding more reduces the effectiveness of the group decision making. But the board must oversee four broad areas: legal, organizational, financial, and programming. For many organizations—even small ones—that seems like too much for such a small group to handle. That’s where committees come into play.
An effective board will have a strong committee structure. Committees should include both board members and non-board members, which allows more people and their differing perspectives and experiences to be involved with the organization. But it doesn’t hinder board-level decision making.
Charmaine recommends organizations have the following standing committees while establishing ad hoc committees as needed:
- Governance – Identifies, cultivates, recruits, and provides ongoing education of board members. This committee also evaluates the performance of individual board members and the board as a whole.
- Finance –Oversees the organization’s financial situation and helps prepare the budget, oversees investments and financial planning, and monitors internal controls. So members should understand finance, nonprofits, and your mission. A board member should serve as Chair and consider having another board member as the Vice Chair to create a pipeline of leadership.
- Fund Development – Assures the organization fulfills its fundraising needs. This committee will look different for every organization. It can act as an extension of your development staff, helping with grants and fundraising.
- Program – Provides a strategic level of programmatic oversight to help guard the mission. If they see the organization getting away from the mission, they are to bring it up. If staff wants to start a new program, the program committee should make sure the it aligns with the mission.
Building A Strong Board
Building a strong board is a continuous and ongoing process. Nancy suggests breaking it down into three phases:
- Identification and Cultivation – Think first about what skills and expertise your nonprofit needs to advance its mission now and in the future. Keep diversity in mind – diversity of thought, background, experiences, and skills. But make sure all members have the common goals of the organization in mind. Before inviting an individual to serve on the board you could invite them to serve on a committee or volunteer with a program, to help make sure it is good fit for that person and your organization.
- Nomination and Election – Before voting on board candidates, prepare your current board for a discussion about the nominees. Share with them names and bios in advance. Give them time at the meeting to raise any questions about the nominees.
- Orientation and Development – Orientation is essential to allow new board members to become effective quickly. Even if someone has served on boards before, your organization is unique and you want to provide them with an orientation to your specific organization. Ongoing training and education with current board members is equally important to help them perform effectively and make informed decisions. This can come in many forms – speakers at a board meeting, attending a local seminar, a board retreat. Ask your members what topics they are interested; this can help keep them engaged in the training.
Once you’ve established this ongoing process for building a strong board, you can then focus on keeping them engaged. An engaged board is forward-thinking, they are collaborative, and they can truly help your nonprofit advance it’s mission.
But before your board can reach this level of engagement and effectiveness, it needs to have a strong foundation. Reflect on your board’s effectiveness and encourage them to do the same. Review these lessons shared by Charmaine and Nancy. Ask yourself if your board follows these recommendations. If not, consider implementing a couple of the strategies to help create a more effective and engaged board.
If you’re interested in talking with Nancy or Charmaine about how they may be able to help your organization, you’ll find their contact information below.
Nancy Owsianowski: Email, Website, LinkedIn
Charmaine Torma: Email, Website, LinkedIn
