Creating a Stellar and Successful Nonprofit Board

Picture of a board of directors meeting around a table

The success of any nonprofit organization hinges on its board of directors, which must be laser-focused on its mission and on ensuring the group’s continued relevance.

Nonprofit boards often are initially made up of volunteers’ friends and meet informally. Eventually, though, the board must become more formal and evaluate itself annually to ensure there is a good mix of diversity.

10 Requisites for a Stellar Nonprofit Board

Nonprofits are required by law to have a volunteer board of directors. Board members need to know their jobs well and stay within the confines of their responsibilities in the organization.

1. The board needs to determine and protect the mission of the organization and ensure its continued relevance.

2. Ensure legal and ethical integrity and bear ultimate fiduciary responsibility.

Today, when the board chair and executive director sign off on an audit, they are personally signing off on the legitimacy of the records. Every board member has personal fiduciary responsibility.

3. Recruit and orient new board members and assess board performance.

Every board, no matter how small or large, should conduct a board evaluation annually, both individually and collectively, so it can build a performance plan for the future.

4. Lay out an effective organizational plan.

An effective organizational plan is well thought out – it requires more than just adding 5% to last year’s donation goal. It needs to be a strategic plan for fundraising and meeting benchmarks.

5. Ensure there are adequate resources to carry out the mission and inspire donors with the highest level of commitment.

For a board member to say they are only putting their name on the board is not good enough. Board members need to be involved in reaching goals, otherwise, they are ineffective.

6  Board members must manage resources effectively.

7. Determine, monitor and strengthen the organization’s programs and services.

Be prepared to take corrective action when needed.

8. Enhance the organization’s public standing. This is absolutely mission-critical. You are the trusted voice of the organization in the community, in the state, in the region. Outsiders will view board members as the ambassadors for the organization.

9. Select the executive director. A board’s role is to be responsible for hiring only one staff person, the executive director. That person hires and manages the staff.

10. Support the executive director and assess his or her performance annually.

As the trusted voice of the not for profit organization, when a board member is asked questions about the Executive Directors performance, they need to know the answers and discuss the executive’s strengths and weaknesses.

Focus on the Real Issues

A board of directors should focus its time and attention on important strategic issues, leaving the day-to-day duties to the executive director.

It’s not just about finding a body to fill an empty seat. An organization needs to carefully determine, based on its goals, who the best individuals are to sit on the board.

Nonprofit boards, by their composition are evolutionary organizations. The board needs to be the group to explore and discuss revolutionary ideas and then to take calculated risks to move the organization in that direction.

A successful board will have constructive communication with the staff and open and honest communication between each other, as board members. One of the hallmarks of an effective board is that decision-making is done in the board room, not after the meeting in the parking lot.

Signs of a Successful Board

When a board shifts from operational to strategic, focusing on outcomes, it is an important shift in the organization. It will begin to look at whether the organization is relevant and necessary in the community and if not, what needs to be done to keep it relevant.

The board eventually begins to understand it is part of a network of services in the community and that it can collaborate with other organizations up to and including a merger.

A successful board’s focus will remain on strategic goals and plans for the organization and not constantly go down rabbit holes. A vital and diverse board will also have vigorous and active response to the mission.