Insights
Thrive in ’25: Twenty-Five Tips to Build a Better Board
By
Debra Thompson
As we embark on a new year, it is hard to believe that we are already a quarter-century into the new millennium. Today, as the pace of change in the world continues to accelerate, our communities need the positive impact of the nonprofit sector more than ever. To maximize impact, it is important to be mindful of good leadership practices.
Here are some tips to help your board be more engaged and effective. Doing all of these things may feel daunting, but adding a few to your new year’s resolution list can help your board Thrive in ’25!
See something, say something.
Good board governance doesn’t just happen on its own, it takes committed members who are willing to speak up and do the right thing. Be that person who speaks up and brings other board members along when they need to be reminded of the right thing to do.
Use consent agendas.
Make board meetings more efficient and effective by combining multiple items/approvals into one agenda topic.
Use AI to your benefit.
There are a number of softwares today (many of them free) that will take meeting notes and/or transcribe discussions. These can be helpful and allow participants to focus on the discussion itself.
Establish a Governance Committee.
A Governance Committee of the board is responsible for board recruitment, orientation, engagement and performance monitoring. If no one is responsible for these activities on the board, bad habits often result.
Understand board roles and responsibilities.
The role of the board is to set vision and direction, provide oversight, ensure that the organization has the resources it needs to meet its mission and to support the chief executive in their operational leadership role.
Be helpful but don’t micromanage.
Especially in small organizations, board members often do ‘hands on” tasks. While board members can act as “management service volunteers,” this is something they should be asked by management to do. Board members should not assume that it is their responsibility to be “in charge” of management and tell them what to do or how to do it.
Exercise (true) fiduciary responsibility.
Many people equate fiduciary responsibility with money, although the definition is broader: to ensure that the mission continues, as long as the need exists. Board members have the “duty of care” whereby they are legally obligated to be good stewards of the organization’s resources.
Understand and practice ‘duty of loyalty.’
The second component of fiduciary responsibility is sometimes forgotten. Board members are legally obliged to only make decisions that are in the best interest of the organization, regardless of the constituency they represent or who appointed them. Board members must also “support majority decisions and move on,” even if they voted against something.
Identify your ‘ideal’ board composition.
This should include the “perfect combination of knowledge, skills, abilities and geographic/other representation” that would make the ideal board. Even if your board is far from this ideal today, knowing what you would ideally like to have can help you recruit the best board.
Revamp your board recruitment process.
Boards often only look to “friends of current members” as their pool of applicants. A better approach is to be clear about your ideal board compensation and then “market” your open board position to professionals that meet those criteria.
Create a “board application.”
This elevates the importance of your board positions and gives potential candidates information about what they can expect from board service. It also provides important insight into the motivation of the candidates in joining the board.
Conduct a board evaluation.
Best practices suggest that this be done at least once every two years. Use the information to improve board training and performance.
Develop a succession plan for board leadership.
You should always be preparing the “next” set of officers and committee chairs as part of your ongoing work.
Hold a board retreat!
Even though it may feel like “herding cats” to get your board together, even a half day of education and reflection on your mission, vision and goals can leave you energized and ready to face a new year, with a commitment to good governance!
Update your strategic plan.
Being clear about your goals and objectives and actively working on “this year’s action plan” is the only way to achieve your long-term goals.
Conduct the Executive Director evaluation.
I am always surprised by the number of people who say that their board does not conduct a formal evaluation of the ED. This is one of the most important activities that a board can do and the process to do so can be found here.
Develop committee “agendas of work’ aligned with your strategic plan.
If you want your board members to be engaged, you have to give them concrete tasks to do. Creating an “action plan” for how each committee can support the strategic plan is an important step.
Give a personal stretch gift and ensure 100% board giving.
Board members should be giving time, talent AND treasure to support the mission.
Open doors to others who have influence and affluence.
Board members should be looking to introduce others to the mission who have influence and affluence in the community. Awareness and connection leads to financial support, but it starts with an introduction and relationship building.
Ensure that your Executive Director and staff are appropriately compensated.
Many people operate under the erroneous assumption that it is okay for nonprofit employees to be paid less. Best practices suggest that every nonprofit complete a comparative salary study at least once every three years to ensure equitable compensation.
Build strategic alliances and partnerships.
Collaboration can lead to synergies, cost sharing and mission expansion on many levels and is worth exploring, especially if your organization doesn’t have the resources or is struggling to do something on its own.
Develop and track performance metrics.
Every nonprofit should identify 10-12 overall success measures, often including overall revenue, numbers served, fundraising and program outcomes.
Report strategic plan progress quarterly.
A short summary of activities completed over the past quarter provides the board with a snapshot of how the plan implementation is progressing.
Evaluate your programs annually.
Boards should be reviewing annually and determining if programs are efficient, effective and producing the desired outcomes.
Work together.
Best practices also suggests that boards should “work together as an effective corporate unit,” making decisions and supporting the organization together.
If your organization would benefit from implementing one or more of these helpful hints, we are available for training, facilitation and/or planning support. Contact us online or call us at 814-480-8000 if we can help!