Nonprofits
Everything you need to know about board management.
Building a nonprofit board
Not all boards are created equal—a strong, healthy board has the power to take your organization to the next level, while a dysfunctional or disengaged board can completely hamstring your progress.
So how do you determine which kind of board you end up with? By taking the time to thoughtfully build a board that actually works for you.
Lots of organizations make the mistake of under-investing in their board. And its easy to understand why—with so many responsibilities already on your plate, managing your board can feel like just one more thing to check off the list. But the truth is, your board will be involved in every important decision you make for your organization, so investing in your board early on is a powerful way to set yourself up for success.
How many board members should a nonprofit have?
If you’re wondering how many board members your nonprofit should have, you’re not alone. The truth is, there’s no single “right” number to aim form. However, there are a few benchmarks you can use as guides.
For starters, all nonprofits registered at a federal level need to have at least 3 board members. And state-level organizations need to follow their state’s requirements, which range from 1-5 board members. However, industry research shows that the majority of nonprofits have around 15 board members.
But here’s the thing: just because most nonprofits have similar-sized boards, doesn’t mean you should too. The truth is, most boards aren’t as effective as they could be. And a bigger board isn’t always better. As your board size increases, so does the level of complexity. Even for something as basic as participating in conversations—the more voices you have at the table, the harder it is to make sure all of those voices have space to share and be heard.
Our recommendation is not to aim for a particular number at all. Instead, think about what your organization needs. What skills or expertise would your organization benefit from? What are you hoping your board members will do for you? What demographics should have a voice at the table?
Maybe you need board members with experience in fundraising or marketing. Or maybe you’re not as concerned with their past experience, but you’re looking for someone who is able to commit a larger number of hours to working with you. Whatever your unique needs are, make a list and recruit board members accordingly.
Building a qualified board
Recruiting board members is a great way to expand your team’s knowledge, expertise, and connections. It can be helpful to start by reflecting on your team’s current strengths and weaknesses. Then look for board members who complement what you’re working with.
Many different skill sets can be assets, so keep an open mind when you’re looking for prospective board members. For example, someone with first-hand experience of the community you’re serving can help you better understand and address that community’s needs. While someone with previous board experience can help you successfully build and manage your own board.
In fact, previous board experience can be especially valuable for nonprofits whose boards commonly consist of volunteers who’ve never been on boards before. To be clear, there’s nothing wrong with volunteer board members! But it can create more work for you in setting expectations and establishing workflows—things an experienced board member would be well equipped to help with.
Cultivating nonprofit board diversity
Diverse leadership can be extremely powerful. By bringing a diverse group of people together with varied perspectives, experiences, and skillsets, you enhance your ability to solve problems, identify opportunities, and make important progress.
When you’re recruiting new board members, don’t just look among your existing network. Expand your search to proactively look for members of different races, ethnicities, ages, genders, and experiences. It can be especially important to recruit board members who represent the demographic your nonprofit is serving—nobody will understand a community’s needs better than someone who’s part of it.
As your board’s diversity increases, be mindful of creating a culture that’s welcoming to all of your members. A healthy board doesn’t just bring together diverse people, it also provides an environment where those people are able to share and discuss ideas openly.
Nonprofit board compensation
When it comes to whether or not you should pay your board members, there are a few key considerations. For starters, yes, you can compensate your board members. But the vast majority of nonprofit board members are unpaid volunteers. And there are pros and cons to each.
On the one hand, board roles can be demanding and compensating people for their time is a great way to recruit and retain more qualified people. Compensation in itself can be a powerful motivator and might help improve engagement from your board members. On top of that, compensation can help improve board diversity by providing opportunities to people who might not otherwise have the resources to serve on your board.
On the other hand, paying board members introduces complexity. Not only do you have to follow IRS guidelines for compensation, but you also have to issue an IRS Form 1099 Misc to any board member who is paid more than $600 a year. Paying your board can also open you up to a higher degree of public scrutiny and you have to be careful to make sure your compensation policy doesn’t adversely effect fundraising.
Whatever you choose, the most important thing is to establish an official board compensation policy that provides clear guidelines for compensation and reimbursement.
Establishing board term limits
Setting board term limits can be a great way to keep your nonprofit’s board healthy and effective. Typically, board terms last 2-3 years. Some organizations also limit the number of consecutive terms a single board member can serve. This ensures you’re bringing fresh perspectives to your organization on a frequent basis, without introducing too much disruption. Your board terms can be longer or shorter, but be sure to outline them clearly in your board’s bylaws.
🌟 Pro tip: using a board portal can be a great way to simplify onboarding for new members and permission controls for outgoing members.
Building a nonprofit board
Not all boards are created equal—a strong, healthy board has the power to take your organization to the next level, while a dysfunctional or disengaged board can completely hamstring your progress.
So how do you determine which kind of board you end up with? By taking the time to thoughtfully build a board that actually works for you.
Lots of organizations make the mistake of under-investing in their board. And its easy to understand why—with so many responsibilities already on your plate, managing your board can feel like just one more thing to check off the list. But the truth is, your board will be involved in every important decision you make for your organization, so investing in your board early on is a powerful way to set yourself up for success.
How many board members should a nonprofit have?
If you’re wondering how many board members your nonprofit should have, you’re not alone. The truth is, there’s no single “right” number to aim form. However, there are a few benchmarks you can use as guides.
For starters, all nonprofits registered at a federal level need to have at least 3 board members. And state-level organizations need to follow their state’s requirements, which range from 1-5 board members. However, industry research shows that the majority of nonprofits have around 15 board members.
But here’s the thing: just because most nonprofits have similar-sized boards, doesn’t mean you should too. The truth is, most boards aren’t as effective as they could be. And a bigger board isn’t always better. As your board size increases, so does the level of complexity. Even for something as basic as participating in conversations—the more voices you have at the table, the harder it is to make sure all of those voices have space to share and be heard.
Our recommendation is not to aim for a particular number at all. Instead, think about what your organization needs. What skills or expertise would your organization benefit from? What are you hoping your board members will do for you? What demographics should have a voice at the table?
Maybe you need board members with experience in fundraising or marketing. Or maybe you’re not as concerned with their past experience, but you’re looking for someone who is able to commit a larger number of hours to working with you. Whatever your unique needs are, make a list and recruit board members accordingly.
Building a qualified board
Recruiting board members is a great way to expand your team’s knowledge, expertise, and connections. It can be helpful to start by reflecting on your team’s current strengths and weaknesses. Then look for board members who complement what you’re working with.
Many different skill sets can be assets, so keep an open mind when you’re looking for prospective board members. For example, someone with first-hand experience of the community you’re serving can help you better understand and address that community’s needs. While someone with previous board experience can help you successfully build and manage your own board.
In fact, previous board experience can be especially valuable for nonprofits whose boards commonly consist of volunteers who’ve never been on boards before. To be clear, there’s nothing wrong with volunteer board members! But it can create more work for you in setting expectations and establishing workflows—things an experienced board member would be well equipped to help with.
Cultivating nonprofit board diversity
Diverse leadership can be extremely powerful. By bringing a diverse group of people together with varied perspectives, experiences, and skillsets, you enhance your ability to solve problems, identify opportunities, and make important progress.
When you’re recruiting new board members, don’t just look among your existing network. Expand your search to proactively look for members of different races, ethnicities, ages, genders, and experiences. It can be especially important to recruit board members who represent the demographic your nonprofit is serving—nobody will understand a community’s needs better than someone who’s part of it.
As your board’s diversity increases, be mindful of creating a culture that’s welcoming to all of your members. A healthy board doesn’t just bring together diverse people, it also provides an environment where those people are able to share and discuss ideas openly.
Nonprofit board compensation
When it comes to whether or not you should pay your board members, there are a few key considerations. For starters, yes, you can compensate your board members. But the vast majority of nonprofit board members are unpaid volunteers. And there are pros and cons to each.
On the one hand, board roles can be demanding and compensating people for their time is a great way to recruit and retain more qualified people. Compensation in itself can be a powerful motivator and might help improve engagement from your board members. On top of that, compensation can help improve board diversity by providing opportunities to people who might not otherwise have the resources to serve on your board.
On the other hand, paying board members introduces complexity. Not only do you have to follow IRS guidelines for compensation, but you also have to issue an IRS Form 1099 Misc to any board member who is paid more than $600 a year. Paying your board can also open you up to a higher degree of public scrutiny and you have to be careful to make sure your compensation policy doesn’t adversely effect fundraising.
Whatever you choose, the most important thing is to establish an official board compensation policy that provides clear guidelines for compensation and reimbursement.
Establishing board term limits
Setting board term limits can be a great way to keep your nonprofit’s board healthy and effective. Typically, board terms last 2-3 years. Some organizations also limit the number of consecutive terms a single board member can serve. This ensures you’re bringing fresh perspectives to your organization on a frequent basis, without introducing too much disruption. Your board terms can be longer or shorter, but be sure to outline them clearly in your board’s bylaws.
🌟 Pro tip: using a board portal can be a great way to simplify onboarding for new members and permission controls for outgoing members.