Creating a Nonprofit Board

Guidelines on Building an Effective Nonprofit Board of Directors

Jan 24, 2007

If you want to end up with an effective board of directors for your nonprofit organization, you should take various factors into consideration.

Size Matters

The number of board members should be not to big, not too small, but just right. What does just right mean? It depends partially on the functions of the board.

Meanwhile, smaller boards, of about 7 members, can operate more informally and possibly make decisions more quickly. (A small dysfunctional board, however, can be harder pressed to be decisive than a well-run large board).

Diversify

A diverse group of people is more likely to consider various perspectives on a problem or opportunity, and more likely to come up with creative solutions. Ethnic and racial diversity is critical – the board of directors should look as much like the client population or the population of the surrounding area as possible. But other types of diversity can be important, too.

Geographic diversity can be important. If you represent the interests of a county or state, for instance, it is altogether too easy to end up with a board that is comprised mostly of people who live in the same city where the nonprofit is located—people who can have trouble understanding the needs of your other constituents.

One of the most important areas of diversity you should carefully seek is diversity in expertise. You don’t want everyone in your free clinic’s board of directors to be a doctor, for instance. Nurses, social workers, accountants, and lay people can all strengthen the board. Here are some common types of knowledge and abilities you should look for from different board candidates:

Finding Candidates

The executive director of the nonprofit, other key staff, and the members of the current board should get together to identify people who can strengthen the board. If there is no existing board, the staff should use their network to ask people to ask people if they are interested in participating.

To save time for more pressing board matters at regular meetings, a subcommittee responsible for board recruitment can be formed. (Of course, the entire board might want to vote on new members, but the subcommittee can for a list of potential candidates, approach them, interview them, and present their findings to the board).

Interview for Fit

Once potential board members have been identified and approached, the next step is to interview them. You should look for:

More on Nonprofit Boards of Directors

The copyright of the article Creating a Nonprofit Board in Non-Profit Governance is owned by Estela Kennen. Permission to republish Creating a Nonprofit Board in print or online must be granted by the author in writing.

Dec 12, 2008 7:22 PM

Guest :

This is a VERY informative website. Thank you very much!
Stephanie
Central Oklahoma

Dec 13, 2008 1:01 PM

Guest :

Right info for starters,

SomaliCan
Columbus, Ohio

Feb 15, 2009 4:42 PM

Guest :

THis was very informative. This site helped me with my next steps in Board formaiton.

Mar 10, 2009 8:53 AM

Guest :

Is there a point at which a small organization would decide that an executive director is not necessary due to lack of funding to pay their salary?

Mar 10, 2009 7:16 PM

Estela Kennen :

Well, there might be a point when you would decide that the position of Exec Director is not viable due to lack of funding, but lack of finances don't change whether a position is necessary or not. If there is no executive director, who will take over those functions? who will orchestrate the day-to-day tasks and see that the mission of the organization is being followed. If someone else can do it (or if the ED position can be restructured -- for instance, become part-time, or taken on additional duties so another position can be removed), then by all means do it. If the organization is small enough that there are no day-to-day tasks, then maybe there is no point of an ED... or at least, a paid ED. But in most cases, the ED fulfills critical functions, without which the organization would fail.

May 7, 2009 5:00 PM

Guest :

Hi Estela,
Thank you for the site. It is valuable information and template. Is the executive director a voting or non-voting member of the board?
Theodore
Melbourne

May 13, 2009 12:02 PM

Estela Kennen :

There might be a rule governing this in your jurisdiction, but the general practice is that the executive director should be a non-voting member. That can create problems when the Exec Director is also the founder of the non-profit, and wants to have a say in both the day-to-day operations and the strategic planning, as is often the case with small start-ups. However, the risk of conflict of interest (or the risk of even the appearance of conflict of interest) is too great for the Exec Director to vote on the board of a legitimate nonprofit.

Jun 4, 2009 6:57 AM

Guest :

Maybe this is a special circumstance, but I am currently working as a contract employee for a tourism authority. Officially a governmental non-profit aimed at increasing travel and tourism to the area, the board is made up of several hotel managers, event site managers or sales people, and local government employees or elected officials. How can this not be a conflict of interest?

Jun 25, 2009 3:47 PM

Guest :

Can a Director and original founder act as a board member to keep from losing control of the organization they started? As long as they obstain from voting on issues concerning Director related issues.

Nov 5, 2009 10:33 AM

Guest :

Thank you for this helpful website. We have been a informal board of a support group that has had no funding. Recently we have been in a position to receive donations. therefore, we are opening a bank account and have been told we should form a board and have a meeting with minutes showing that we agree to open an account for the purpose of maintaining our website and help with costs. Should we first have a meeting establishing the board of directors and each of their duties?

Nov 5, 2009 7:00 PM

Estela Kennen :

Dear Nov 5,
Is your organization official? If not, the first step would be to incorporate it. Then I would establish the board and delineate its functions; then I would discuss and vote on the creation of a bank account (this could happen at the same meeting if you guys are very efficient). I wish you success with your venture!