An Examination of Board Membership: How To Be a Force for Good

This blog was written by Veronica Onofrey, Previous Vice President of Development, HATCH, Inc. and Lindsey Nell Rabinowitch, Director of the Faith & Action Project, Christian Theological Seminary members of the 2024 Mutz Philanthropic Leadership Institute.

Nonprofit organizations thrive on passion, commitment, and strategic oversight, with their Board of Directors at the helm. This dedicated group provides the strategic guidance, oversight, and financial support necessary to steer nonprofits through their various lifecycle phases. But what makes a nonprofit board truly effective? Let's explore the essential elements that contribute to a high-performing board, the responsibilities they shoulder, and the best practices they should adopt.

• Board Giving Requirements: A crucial aspect of board service is the expectation of significant financial contributions. Board members are encouraged to place their donations among their top three philanthropic commitments. This demonstrates dedication and sets a powerful example for other donors, showcasing a personal investment in the nonprofit’s mission.
• Board Member Duties: Board members are the strategic minds behind the nonprofit's operations. Their duties encompass strategic decision-making, governance, fundraising, and long-term vision planning. They set policies, monitor financial health, support executive leadership, and ensure the organization remains mission-focused.
• Board Engagement: Active engagement is more than just attending meetings. It involves regular participation in committees, staying informed about the nonprofit’s activities, and actively contributing to its goals. Board members should be the most passionate and informed advocates of the organization.
• Introducing Best Practices: Best practices should be introduced with a comprehensive orientation session and continue with periodic training updates. This ongoing education ensures board members remain aligned with current governance standards and the evolving needs of the organization.
• Board Orientation Session: Think of orientation as the foundational course for board service. It should cover the nonprofit’s mission, governance structure, bylaws, financial statements, strategic plan, and key policies. This sets the stage for informed and effective board participation.
• Updating Board Bylaws: Just as organizations evolve, so too should their bylaws. Regular reviews and updates, ideally every few years, ensure they reflect current practices, legal requirements, and organizational changes.
• Important Committees: Effective boards have active committees focused on areas such as finance, governance, fundraising, and programs. These committees, with clear mandates, drive the nonprofit’s strategic objectives forward.
• Board Liabilities: Board members must understand their legal and financial responsibilities. Ensuring compliance with laws, regulations, and ethical standards protects both the organization and its members.
• Board Recruitment: Recruitment should be intentional, focusing on bringing in diverse skills and perspectives. A structured process, including formal applications and interviews, helps identify candidates who align with the nonprofit’s mission and needs

To be effective in achieving its mission, an organization must be acutely aware of which lifecycle stage they are currently functioning in for the staff and Board of Directors to work cohesively. Nonprofits, much like living organisms, go through different life cycle phases, each requiring distinct board involvement.

• Startup Phase: In the early days, the board is critical in establishing a strong foundation. This includes setting up governance structures, securing initial funding, and defining strategic priorities.
• Growth Phase: As the organization expands, the board’s focus shifts to strategic planning, diversifying funding sources, and scaling programs. This phase is about steering the nonprofit towards sustainable growth.
• Sustaining Phase: During this phase, the board’s role is to provide oversight, refine strategies, and maintain the long-term vision. This involves ensuring financial stability and program effectiveness.
• Declining Phase: If the organization faces a downturn, the board must reassess its composition and strategies. Bringing in new members with fresh perspectives or enhancing existing members' understanding can help navigate towards renewal.
• Renewal Phase: This phase involves revitalizing strategies to return to growth. The board plays a pivotal role in guiding this transformation and securing necessary resources.
• Dissolving Phase: When dissolution is inevitable, the board ensures a smooth closure, meeting all legal and financial obligations, and retaining necessary records for audit purposes.

In any phase, particularly when a founder departs, it is essential for the board to reevaluate the organization’s mission, values, and long-term vision. So what sets high-performing boards apart? Several key characteristics stand out:
Recruitment and Onboarding: Effective boards have a structured process that brings in diverse members with complementary skills. Comprehensive orientation and ongoing education equip new members to succeed and contribute meaningfully.

• Development Expectations: Clear expectations for personal giving and fundraising participation are essential. Board members must be informed about the organization’s financial needs and committed to meeting them.
• Defined Roles: Clearly defined roles for board members and staff prevent overlaps and ensure efficient operations. Understanding these roles keeps the organization running smoothly.
• Active Committees: Committees with specific purposes aligned with the strategic plan are vital. Active participation in these committees ensures that key areas are addressed effectively.
• Term Limits and Offboarding: Implementing term limits prevents stagnation and brings fresh perspectives. Former board members can continue to support the organization in emeritus roles, providing valuable continuity and advocacy.

Effective nonprofit boards are the cornerstone of organizational success, driving strategic direction, fundraising, and community impact. Through intentional recruitment, clear expectations, active committees, and leveraging philanthropic and business resources, boards can navigate the nonprofit lifecycle and ensure long-term sustainability. With continuous training and effective communication, we can be transformative forces for good in our community.