This may be a Scandalous Post in the Nonprofit Sector!
I came home from my state's nonprofit conference yesterday energized by the work of the organizations and downhearted by the repeated complaints about weak and disengaged boards. These complaints are nothing new - as nonprofit organizations strive to address complex social issues with limited resources, the need for effective governance structures has never been more pressing.
It’s time to rethink how nonprofit boards function, particularly the assumption that board members should act as fundraisers rather than focusing on oversight and compliance. Can we do this?
The Current State of Nonprofit Boards
Traditionally, nonprofit boards have been tasked with a mix of responsibilities: providing legal oversight, shaping strategy, and ensuring financial sustainability. In practice, this often translates into board members being expected to secure funding—a role that many are neither equipped for nor inclined to fulfill. This creates a cycle of unmet expectations, frustration, and inefficiency.
In addition, large boards—often created to cast a wide net for fundraising or to represent diverse stakeholders—can become unwieldy. Decision-making slows, accountability blurs, and the focus shifts away from governance toward trying to manage board dynamics.
A Proposal for Change: Smaller, Oversight-Focused Boards
A more streamlined, effective approach would be to establish smaller boards focused exclusively on governance and oversight. These boards would include only the legislatively required officers—president, treasurer, secretary, and possibly a vice president—and would concentrate on ensuring the organization operates within legal and ethical boundaries, manages resources responsibly, and achieves its mission.
Why Smaller Boards Work
Enhanced Focus on Governance
Smaller boards allow members to dedicate their time and expertise to governance responsibilities, such as financial oversight, compliance, and organizational strategy. This creates a culture of accountability and ensures the nonprofit meets its legal and fiduciary obligations.Faster Decision-Making
Streamlined boards can make decisions more quickly and efficiently. With fewer voices at the table, discussions remain focused, and the organization can respond to challenges and opportunities in a timely manner.Clarification of Roles
By removing the expectation that board members act as fundraisers, organizations can shift this responsibility to development professionals or volunteers who are specifically recruited and trained for this purpose. This allows board members to concentrate on their oversight role.Stronger Alignment with Mission
Smaller boards often result in more engaged and committed members. When the role is clear and manageable, board members are better able to contribute meaningfully to the organization’s success.
Addressing Common Concerns
Some may worry that removing fundraising from the board’s responsibilities could limit a nonprofit’s ability to secure resources. However, this shift doesn’t mean abandoning fundraising—it means redefining who leads these efforts. Nonprofits can create dedicated fundraising committees or cultivate a network of ambassadors and supporters who are passionate about the cause.
In fact, removing the fundraising expectation could further democratize and diversify board leadership. Those without networks with deep pockets could be recruited for their leadership ability, issue knowledge, enthusiasm and commitment to mission.
Smaller boards can be augmented by creating advisory councils or task forces that bring in diverse perspectives without the formal governance responsibilities of a board seat.
The Way Forward
As the nonprofit sector continues to evolve, so too must its governance structures. By embracing smaller, oversight-focused boards, organizations can create a governance model that is efficient, effective, and aligned with their mission. This shift not only reduces inefficiencies but also positions nonprofits to thrive in a competitive and resource-constrained environment.
It’s time to challenge the status quo and build governance structures that work for today’s realities. Let’s start the conversation.
Barbara
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