Nonprofit Boards Research Articles

Limit board's involvement in revising employee handbooks, related policies

The start of a new calendar year is on the horizon, and many nonprofits take this opportunity to revisit employee handbooks, making updates as needed. But while some nonprofit boards might want to be involved in this process, their role should be minimal, experts say.

Webinar gives tips of building an effective nonprofit board

Webinar gives tips of building an effective nonprofit board

Nonprofit board self‐assessment matrix: Shaping the mission and vision of the organization

Nonprofit board self‐assessment matrix: Shaping the mission and vision of the organization

Put policies, procedures in place to address board disputes

Its natural—and common—for nonprofit boards to confront conflict in their ranks. Whether it's disputes between board members, boards and staff, or the executive director and board chair, these situations should be expected, and addressed by policies and procedures that the board and organizational founders put in place from the get‐go, according to Jeremy Barlow of board management consultancy BoardEffect.

Board recruitment should be a year‐round effort

Nonprofit boards with terms ending with the calendar year will have an especially busy time the next few months as they add board member recruitment activities to their to‐do lists.

Don't leave board recruitment efforts til year's end

For nonprofit boards with terms that coincide with the calendar year, the next few months might be busy with board member recruitment, with the aim to have new members voted in by the beginning of January.

Nonprofit Board Self‐Assessment Matrix: Enablers of Board Effectiveness—Leadership

Nonprofit Board Self‐Assessment Matrix: Enablers of Board Effectiveness—Leadership

Representation of women and people of color on nonprofit boards and CEO gender and race

PurposeThis study examines how the representation of women and people of color on nonprofit boards relates to CEO gender and race.Design/methodology/approachThis study uses the 2020 data of 501(c)(3) nonprofit organizations in a Southeastern U.S. state. It employs the seemingly unrelated bivariate probit regression to simultaneously estimate the two equations for CEO gender and race.FindingsThe findings show that the proportion of board members of color is positively associated with having a CEO of color and a female CEO. The proportion of female board members is positively associated with having a female CEO, but not with having a CEO of color.Practical implicationsThe lack of a positive connection between women’s representation on the board and having a CEO of color may be attributable to the pervasive and systematic Whiteness in nonprofit leadership. The findings suggest that nonprofit boards reflect on the current executive hiring policies and practices to address existing racial biases or barriers.Originality/valueThis study’s findings reveal that the descriptive representation of women and people of color in the governing board is closely linked to their substantive representation in the form of selecting a woman or a person of color as the CEO. The findings also suggest an interconnection between the representation of people of color on the board and having a female CEO. However, women’s representation on the board is not related to having a CEO of color.

Accessing the Boardroom: Investigating How Prior Research has Included the Perspective of Nonprofit Boards

Accessing the Boardroom: Investigating How Prior Research has Included the Perspective of Nonprofit Boards

Nonprofit risk management extends well beyond financial threats, experts say

Nonprofit boards are likely familiar with the basic concept of risk management, and how it involves them as board members. Put simply, risk management is the process for investigating, assessing and responding to the various risks that may impact the organization.

Revisit bylaws to make sure they still work for the organization

Now that the new year is underway, advise that nonprofit boards revisit their bylaws to make sure they are up to date and still working and appropriate for the organization.

Start of the year marks a good time to revisit expense reimbursements

Now that most—if not all—nonprofit boards are back to holding their regular board meetings in person, it's a good idea for them to refresh their policies regarding expense reimbursement.

Nonprofit Board Self‐Assessment Matrix: Shaping the mission and vision of the organization

Nonprofit Board Self‐Assessment Matrix: Shaping the mission and vision of the organization

Engage boards with fundraising help in ways that don't involve solicitations

For nonprofit boards, the prospect of engaging directly with fundraising often generates fears and trepidation, mainly because many—if not most—board members feel uncomfortable asking people for money.

Encourage all members to become ‘board champions’

While it's true that those in leadership positions on nonprofit boards often have the highest visibility and expectations to be “board champions,” those who do not serve as officers can be just as effective in championing the organization and providing exceptional support for the board.

Keep tabs on potential outside influences of board members

Ideally, nonprofit board members are all suitably independent, meaning that their thoughts and opinions—and ultimately, their votes on matters of importance—are not made while under any outside pressures.

Expand role of development committee as organization matures

It's common for nonprofit boards of all sizes to have a fundraising committee—also known as a fund development committee—to take on various fundraising tasks. But the day‐to‐day responsibilities of this committee should change with time, according to fundraising experts. In short, as the organization grows in size and maturity, the development committee should transition from conducting the actual, on‐the‐ground donor solicitations to focusing on longer‐term revenue streams and the organization's big‐picture fiscal health.

All board members—not just the chair—have a role to play in curbing conflicts

It's common for nonprofit boards to experience turmoil and conflict among members from time to time—and especially during times of high stress and unusual circumstances. And while the board chair—as the most senior leader of the board—has a central role to play in helping to resolve such disputes, each individual board member shares some responsibility for limiting conflict to begin with, according to Jeremy Barlow of BoardEffect.

How Much Does Nonprofit Board Governance Matter? Role of Interlocking Directorates, Executive Power, and Women on Boards in Executive Compensation

This article develops an executive compensation model focusing on board governance structure in nonprofit organizations. Drawn from a panel of nonprofits in three Upstate New York cities from 1998 to 2014, the analysis shows that chief executive officers (CEOs) compensation is positively associated with interlocking directorships of CEOs and boards of directors. The results reveal that the executives enjoy more compensation when they serve on the boards of other nonprofit organizations, hold more power in a leadership position with CEO duality and longer tenure, and when the organizations are led by busy boards where a majority of members in the boardroom sit on the boards of multiple other nonprofits. The analysis further shows that financial rewards offered to the executives are contingent upon women’s representation in the boardroom. These findings suggest board governance composition plays a critical role in executive compensation. Implications for practice and future research are discussed.

As organizations mature and evolve, so should their boards

For many nonprofit boards and executive directors, the transition from a new and dedicated group of people passionate about a cause to a formal outfit with accountability for large budgets and weighty fiscal responsibilities can be a major challenge. But the typical lifecycle and evolution of a nonprofit often follows along these lines. It's founded by an individual or small group of people who see a need they want to address. Their budgets are small, they have no paid staff, and they themselves constitute the board of directors and fill the roles of ED/CEO and other staff positions in the organization.