The Board of Directors is the guiding hand of any nonprofit organization, responsible for governance, financial health, oversight of operations and adherence to mission, strategic plans and advocacy. 

An effective board is comprised of individuals committed to the organization’s mission that also share complementary skills, talents and backgrounds. Knowing their role and how that differs from management functions is also a key theme of successful boards. 

What should organizations consider when building and refreshing a Board of Directors?

When selecting members for a board, organizations should aim to include a variety of levels of backgrounds and expertise. Some of the most successful boards that our team works with have a variety of strengths and perspectives. For example, for an organization that deals in fine arts and craftsmanship the board includes artists, as well as an attorney and accountant who can provide insights on legal and financial considerations in addition to the operational needs of the organization. Having a well-rounded board that believes in and understands not only the operations and mission of the organization, but also the administrative elements of running a successful business or organization, can be extremely beneficial.  

Enthusiasm is also key, and it is crucial to seek out board members who are invested in your organization and mission. There is a big difference between a board member that regularly attends meetings but does not contribute to the discussion or ask questions, and an engaged board member who asks questions, seeks to understand (and have a positive impact on!) your organization, and considers the bigger picture. A questioning mindset applies to everything such as your strategic plan, budget, annual financial audit process or running capital campaigns.  

It can be a challenge for nonprofits, especially smaller organizations, to recruit board members who offer expertise and enthusiasm. Reaching out to your network and trusted service providers (accountants, lenders, attorneys) for assistance may be helpful.  

How long do board members typically serve? How many members should be included? 

Board members typically have term limits. We see terms of two to six years depending on the organization, with various options for reappointment after this initial term. The goal of term limits is to introduce new individuals and fresh perspectives.

The size of a board can vary greatly between organizations. Larger boards may have up to 20+ members. An organization’s bylaws should have important wording and rules on the number of board members, term limits, roles and certain responsibilities.

Effective leadership can guide an organization through both good and challenging times

By understanding and fulfilling key board responsibilities, defining clear boundaries from management functions, and recruiting a qualified and involved board, nonprofits can drive their organizations towards successfully achieving their mission and making a positive impact in their communities. Effective governance, strategic planning, and financial management are the cornerstones of a successful nonprofit organization.

If you have questions about your organization or would like to learn more about the services we offer, reach out to a member of BNN’s nonprofit team.

About the Author: Marrissa MacLeod is an assurance senior manager at Baker Newman Noyes.