New (or not) Nonprofits: Creating, Building, or Replacing your Board of Directors?

New or not, a nonprofit organization is only as strong as its Board of Directors enables it to be. Know this, if your Board is weak or ineffective – or is heading down that path – you will eventually pay the price for it. No matter how we put it, we at Rising Tide cannot stress enough the importance of a strong Board to a nonprofit. Whether you are starting a new nonprofit or struggling with your current Board and need to renew its strength and vitality through new blood, here are some basic guidelines to follow:

1. Term Limits are a must have. Start your new Board with Term Limits, or implement them ASAP with your current members. A member’s term should be in the 1-3 year range (shorter term is better for younger nonprofits; ask us why.) In addition, members should be limited in how many terms they can have. Entrenched Board members – stuck in their ways or clinging to long past practices and goals – can quickly become a disaster for an otherwise fully functioning organization. Board members should roll-on and off the organization in a regular cycle. A cycle known to them when they accept your invitation to serve.

2. Diversify. Diversify. Diversify. An obvious path in today’s world, but to reinforce, the ideal Board is not only diverse in age, ethnicity, gender identity, geography, race, religion, sexual orientation, and socioeconomic status, but also in professional experience. Most importantly, diversity enables differing perspectives to best arrive at good decision-making. Notably, from our fundraising POV, it also helps in terms of appeal to institutional funders and big- and small-dollar donors.

3. Boards have to be revenue generating. Sorry, we do not like absolutes much either, but this one is a requirement for successful nonprofits. So:

   • Require a “Give or Get” from each Board member. Can be $15 or $500 or $50,000 annually, but it must happen. In fact, many institutional funders (and high-net-worth individuals) require 100% Board participation in giving or they will not provide their own support. You – and your Board – set the amount and terms of a “get”, but you have to make it happen. Hint: put in your By-Laws.

   • Always have a Board member who is a fundraiser or who has a strong connection to fundraising for nonprofits. This may be obvious, but as you need members who have legal, accounting, and topical advice and value to provide the organization, you need someone on board who knows about generating revenue. And, good news, they will be in charge of your new/existing Board Development Committee … that of course you also need!

We hope this is helpful on your journey to that best Board of Directors, and, as always, reach out anytime if we can be helpful for you.

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More points of view – from trusted sources – on the importance of successfully building and maintaining nonprofit Board of Directors:

• Legal, ethical, and practical reasons to build a strong board shaping the nonprofits foundation for good governance

• Diversity on Nonprofit Boards

• The importance and structure of a successful new (or otherwise) Board

• Why Nonprofits Should Require Board Members to Donate and Fundraise