A recent article in the
Wall Street Journal looked at the composition of three somewhat typical boards of nonprofits involved with the arts and three other boards of nonprofits dedicated to social causes. The major difference was that arts boards have a high percentage of full-time philanthropists, while boards for social causes draw more from business and finance. This study prompted us at The EHL Consulting Group, Inc. to ask, "What makes up a good board?" Here is what we found.
Who should sit on the board?
Many factors contribute to the make-up of a board, including the type of nonprofit, the nonprofit's mission, size and fundraising necessities. Whether board members are drawn from business, finance, the public sector or other areas, they should be people of affluence and influence who can open doors for the organization. They should have resources of their own as well as connections with other potential donors. But, most importantly, they should be committed to the organization they serve.
How many people should sit on the board?
According to BoardSource, the average size of a board is 17 members, but that does not mean every board should be that size. The optimal board size varies according to the stage in the board's lifecycle, its mission, its fundraising necessities and whether it is a national or a local board. The board must be large enough that the members are not overworked and unproductive, but small enough that everyone has the opportunity to participate.
What are the responsibilities of board members?
Members of the board should not only be committed to the ideals and mission of the organization but should also inspire others to become involved. They should actively inform others about the organization and stay up-to-date about its mission, services, policies and programs. They also have a responsibility to contribute financially to the organization. A successful fundraising initiative requires 100% participation by the board.
How should board members be chosen? How long should a board term be?
Choosing board members should be a strategic process. A board needs to be well rounded with a sufficient range of expertise to accomplish the organization's mission. Therefore, a Board Development Committee should be in place to continuously seek out and recruit board members who will fill in the missing pieces. A common mistake that too many nonprofits make is selecting a nominating committee to meet on an ad hoc basis for one or two times. And, of course, there should be regular turnover of the membership, allowing for fresh vitality and new approaches.
For more information:
- BoardSource: www.boardsource.org
- "Hunger vs. the arts,"Wall Street Journal 14 October 2006, P8.
- Board Café: www.compasspoint.org/boardcafe/index.php
- Free Management Library: www.managementhelp.org/boards/boards.htm
