Start Establishing the Ideal Structure for Your Nonprofit Board: A Step-by-Step Guide

By Cynthia Albert Link and Michelle Hurley

An effective nonprofit board is pivotal to the success and sustainability of your organization. The ideal structure of your board with explicitly defined roles and responsibilities for its members can set up your nonprofit organization to successfully achieve its mission. Here’s a guide to help you establish the optimal structure for your board.

Committees: The Backbone of Board Functionality

A well-structured board often relies on committees that are aligned with the organization’s operations.  Key committees that can enhance your board’s effectiveness include:

1. Executive Committee: This committee typically includes the board’s officers (chair and vice chair) and often includes the chair of each of the Board committees. The Executive Committee acts on behalf of the board during intervals between board meetings. It ensures that urgent decisions can be made swiftly while keeping the entire board informed. This committee works closely with the top executives, communicating often.
2. Nominating & Governance Committee: Responsible for recruiting new board members, this committee ensures that the board remains diverse and effective. Just as important, it also oversees the board’s governance practices, ensuring compliance with best practices and any legal requirements.
3. Finance Committee: Tasked with advising on matters pertaining to the organization’s financial health, this committee works closely with the Chief Financial Officer to review financial statements and ensure that adequate controls are in place.
4. Advancement or Development Committee: Dedicated to achieving the organization’s philanthropic goals, this committee helps guide outreach, establishing a culture of philanthropy, increasing gifts and strengthening stewardship. In partnership with the Chief Advancement Officer and the entire team, committee members help by regularly contributing, connecting others to the organization, hosting events, possibly soliciting gifts and generally supporting the organization’s mission.
5. Endowment Committee (if applicable): Focused on the organization’s endowment, this committee works to ensure long-term financial stability.
6. Mission-Specific Committees: Depending on your organization’s unique needs, you might have committees that focus on specific areas such as programs, advocacy, or community outreach. These committees should align closely with your organization’s mission and strategic priorities, and may be temporary in nature.

These committees can meet once per quarter or at a predetermined interval of time defined by the Board. Timing is important. Usually, committee meetings are scheduled in advance of Board meetings if committee progress helps inform the Board’s agenda. Or, meetings might coincide with the Board’s schedule to make it more convenient for Board members.

Expectations of Board Members

In addition to creating committees that align with your organization’s mission and functions, it is critical to clearly outline and communicate Board member responsibilities to maintain a high-functioning board. Here are some key areas to consider:

Terms

1. Length of Service: Standard terms include a commitment to three 3-year terms of service for a total of 9 years, providing a balance between continuity and fresh perspectives. Typically, guidelines provide for continuing or concluding service at the end of each of the first two terms. At the end of the third term, the Board member rotates off the Board, either permanently or for a 1-year hiatus before becoming eligible for a second period of three 3-year terms.
2. Committee Service: Board members should be expected to serve on at least one committee, leveraging their skills and interests.
3. Meeting Attendance: Regular attendance at board and committee meetings is essential. Establish a minimum attendance requirement to ensure active participation.

Organizational Commitment

1. Getting to Know the Organization: Board members should invest time in understanding the organization’s mission, programs, and operations. This can include site visits, meetings with staff, and reviewing key documents. Knowing the organization well will result in more effective Board members.
2. Participating in Events: Board members should actively participate in organizational events, providing visibility and support. This can range from fundraising galas to community outreach initiatives to participating in the daily functions of the organization if possible and appropriate.

Philanthropic Commitment

As discussed in a previous article, board members should be committed to the financial health of the organization. This can include personal donations, fundraising efforts, and tapping into their networks to support the organization’s financial and mission-driven goals.

Optimizing Your Board

To ensure your board is functioning at its highest potential, it’s essential to regularly evaluate and optimize its structure and performance.

Prepare a S.W.O.T. Analysis

Conduct a thorough SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of your current board. This will help you identify areas of strength to build on, weaknesses to address, opportunities for growth, and external threats that need to be mitigated.

Develop a Plan to Make Meaningful Change

Based on your SWOT analysis, create a detailed plan to enhance your board’s effectiveness. This plan should include specific goals, timelines, and responsibilities. Consider the following strategies:

1. Recruiting New Members: Identify gaps in skills, experience, and diversity. Develop a targeted recruitment strategy to fill these gaps, ensuring your board is well-rounded and equipped to address the organization’s needs. Ask current Board members to recommend future candidates.
2. Establishing Optimal Committees: Review your current committee structure and make adjustments as necessary. Ensure that each committee has a clear charge and is aligned with the organization’s strategic goals. Particularly focus on strengthening the Executive Committee, as it plays a critical role in board leadership and decision-making. If the Executive Committee includes the chairs of each of the Board committees, let that help guide the chair selection process.
3. Enhancing Board Engagement: Develop initiatives to increase board member engagement, such as an orientation process, regular training sessions, strategic retreats, and opportunities for deeper involvement in the organization’s work.

Summary

An ideal board structure is not one-size-fits-all; it must be tailored to the unique needs and goals of your organization. By establishing specialized committees, setting clear expectations for board members, and continuously optimizing board performance, you can ensure that your board is a powerful asset in achieving your nonprofit’s mission. Remember, a well-structured board doesn’t just support the organization; it drives it forward, inspiring confidence and commitment from all stakeholders.

Contact info@theangelettigroup.com to discuss more ways The Angeletti Group can help support your nonprofit board.