Board Composition for Non Profits
The composition of your board depends largely on it’s intended role. So before you form your board of directors give careful thought to, and seek professional advice if warranted, what primary function you want your board to serve. The board can have a multi-faceted role but should be formed with the organization’s greatest need in mind. Most boards can be generally categorized as follows:
1) Rubber stamp Board – By law in most if not all states and provinces, non-profit organizations must have a board of directors. In some states the board can be as few as one person! If you need a board for no other reason than to satisfy a legal requirement, then your board is essentially a rubber stamp. An example when such an arrangement may be appropriate is for a small family foundation or non-profit which has no staff and receives no public or foundation funds.
Composition: family members or close friends that you can trust.
2) Advisory/ policy making board – This board’s primary role is to set organizational policy and provide advice to the executive director as requested or warranted.
Composition: Experts and practitioners in the field which the non-profit operates as well as 10-20% constituents
3) Hands-on/ Co-operative board – Established organizations may require their board members actively participate in programs to lend their expertise or simply to make a connection to the constituents. It is also a way for the non-profit to tap into quality programming at no cost. For example, an organization that runs a business program for youth may have board members give a series of workshops on accounting, marketing and sales techniques. Non-profits in the inception stage may need its board members to run programs because of a lack of financial resources. I refer to this as a Cooperative Board, where the board essentially serves as staff. As the organization grows over time the role of this board may shift to an Advisory or Patron Board. This transition period is often an awkward and sensitive time as new board members would be added and some founding board members may be transitioned out.
Composition: 50-80% Constituents, 20-50% specialists in the field and community partners. You will want to recruit board members willing to work and get their hands dirty. This type of board often requires the biggest time commitment.
4) Patron board – Appropriate for non-profits that are firmly established and have a track record of successful programs. This board is not going to be running programs or expected to deliberate on complex policy issues. It will for the most part be deferring to the executive director on most policy issues and stay complete out of day to day operations. The role of this board is to get money! Some boards require that all members contribute a certain amount each year personally, or through their foundation. On other boards the expectation is the members will organize fundraisers or help the executive network with other funders in the community.
Composition: 60-75% Individuals connected to resources and/or of high stature in the community and their field of expertise. 25-40% constituents and practitioners/ partners from other community organizations.
5) Some combination – You may want to some elements of each on your board.
Whatever you decide, clearly define the board’s role before you recruit and be sure to articulate to potential members so they understand what commitment is expected of them.
Generally speaking it is beneficial to have a diverse board. Even if the primary role of the board is to raise money, you probably do not want your board to consist solely of philanthropists. It is important for the board to have perspective and I almost always recommend reserving 10-20% of the board seats for constituents, even for Policy and Patron Boards. You never want your board to operate in a ‘bubble’ because this can lead to poor-decision making and have a serious detrimental impact on your organization.
Every board, no matter the type, has a serious fiduciary responsibility and it, as well as its members, are accountable and liable for whatever good works and problems are performed/ caused by the organization. It is important that board members understand this responsibility and take it seriously; and it is wise for the organization to have ‘board insurance’ so its members cannot be personally sued.
Although the board may not have a direct role in programming, every board must take it upon itself to hold the executive accountable and take action if the organization’s mission is not being followed or the executive is not performing as expected.