In this column, we’re going to address the topic of nonprofit boards of directors. The IRS requires that all 501(c)(3) organizations have a board of directors, made up of at least three members who meet at least once a year. Beyond that, there are very few regulations with regard to boards—especially when it comes to who should be selected to serve on a board.
Different organizations assemble their boards in different ways. There are organizations that build their boards of directors with individuals who truly care about the organization and want to help make it better. These members may be heavily involved in the particular organization as a volunteer, or they could work in a closely related field. For example, a nonprofit that provides support for women with breast cancer might have an oncologist specializing in the treatment of breast cancer on their board and/or a breast cancer survivor. A board like this may also include individuals who are sympathetic to the cause and also have valuable skills or knowledge that could be tapped into for the advancement of the organization. These may be people who work in unrelated fields, but who have a good amount of general knowledge about things like strategic planning, business operations, or legal matters.
Other nonprofits use their boards to help bring credibility and recognition to their organization. They stack their boards with well-known and respected leaders in the community—and sometimes even celebrities.
There are even nonprofit boards made up entirely of wealthy individuals. Adding them to the board is most likely a move by the organization’s leadership to keep these individuals tied to their nonprofit and keep their donations coming in. The nonprofit may also hope they’ll bring their wealthy friends along—inviting them to fundraising events or encouraging them to support the organization as well.
Each type of board member has their merits, but everyone needs to be in agreement about what is expected of the board members for it to work. Some wealthy or high-profile people may agree to be a part of your board, and even allow you to use their names in marketing materials, but only on the condition that you understand they won’t be able to devote a lot of time to the role.
In my experience, the best board members are those who truly want to contribute to the success of the organization. Even if your nonprofit has solid leadership in place, it can still benefit from guidance and the outside perspectives of others. At the nonprofit organization where I serve as COO, VitalChurch Ministry, we have had people from many different backgrounds and with varying professional experiences serve on our board of directors. We have had pastors, business owners, attorneys, CEOs, CFOs, and even some former clients as a part of our board. Each board member has brought a unique perspective to our organization. They have been able to advise us well, given their own areas of expertise. They have all been on board with what our ministry is trying to accomplish in churches throughout the United States, and worked with us to help make us more effective and strengthen the organization as a whole. They have provided oversight, guidance, and valuable advice on a variety of issues.
Don’t underestimate the benefits of a well-assembled board of directors. It shouldn’t be looked at as a necessary evil, but rather, as a valuable asset that can help take your organization to the next level!
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