What Role does a Board Play in Nonprofit Management?

One of the biggest pain points in nonprofit leadership is board engagement. Some boards may try to wear too many hats while others may lack engagement, but neither is desirable for effective nonprofit management! 

​The ideal scenario is one where a board plays the role that the organization needs when it needs it – a sort of “just right” balance between being too hands-on and being too hands-off. And while this may seem like an impossible fairy tale request, it’s one that becomes attainable when the board understands their overarching purpose and has clearly defined boundaries.​

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Recognizing The Board’s Purpose
Some nonprofits will have working boards (i.e. “doing boards”), whereas others will have strictly governing boards (i.e. “overseeing boards”). 

Working boards are more hands-on, and often take on tasks that would be assigned to staff in a larger or more well-resourced organization, whereas governing boards will be more responsible for strategy, financial oversight, and upholding the mission.

Essentially, both types of boards will be responsible for governance and oversight, but working boards will also be involved with the day-to-day activities of the organization.

Typically, the organization’s size (based on revenue and staff) will play factor here. The smaller an organization is the more likely it is to have a working board because there are fewer people available to do the day-to-day work of running the organization, so everyone needs to pitch in. This is why startups usually have a working board while more mature nonprofits will often have a governance board. However, this is not always the case! An organization’s mission may incline the board to bend more towards working or more towards governing depending on its specific needs.

Clearly Defining the Board’s Function
​One of the challenges we see is that boards sometimes have their role and purpose defined by who is on the board, either leaning in the direction of doing or overseeing based on the preferences of those sitting on the board. We see this in some cases with founders or long-term board members who have always engaged in a particular way and have a hard time stepping back, even as the organization grows beyond that model.

Letting the board’s members determine what role the board will play is not advised. As turnover occurs over time, both on the board and in the Executive Director role, the board’s role can fluctuate in a way that’s confusing and inefficient, leading to ineffective management of the organization in the long-term. Instead, a board’s role should be clearly defined independent of who is on the board currently or who is interested in joining the board in the future and then members should be added in alignment with that purpose.

Understanding Board Member Roles
Regardless of the board’s overall purpose all nonprofit board members have the three primary roles to exercise:

• Duty of Care – a legal responsibility to make decisions on behalf of the organization while exercising good judgement
• Duty of Loyalty – the responsibility of putting the interests of the organization before their own
• Duty of Obedience – the responsibility to ensure the organization abides by all applicable laws and regulations while adhering to its mission

Both types of boards need to prioritize these duties across areas like strategy, executive hiring, and financial oversight.

Setting Boundaries
Within these three key duties the most effective nonprofits have board roles that are clearly defined so that a board member understands their part in the overall leadership of the organization across areas like:

• Advocacy
• Executive Hiring
• External Communications
• Financial Oversight
• Fundraising and Development
• Governance and Policy
• Programming
• Strategic Planning

We also know that board members can play a variety of roles in an organization at various levels. For example, a board member may also volunteer to deliver meals, work at a thrift shop, or serve in another capacity to support the organization’s mission. In cases like this it’s important that a board member not bring their “board member hat” to the volunteering role. So, boundaries must also adapt and adjust based on the specific role any one board member is playing at a particular time.

Working Collaboratively
Regardless of how many hats they’re wearing, it should be clear to those inside of the organization where the board’s role starts and stops in relation to not only to the Executive Director (ED) but also to other leadership roles as well, like the Director of Development and Events Committee Chair. This doesn’t mean that the board won’t work collaboratively across activities and areas of the organization, because it certainly will!

However, boards should understand what expectations exist around how to collaborate productively with staff so that work isn’t duplicated, and trust isn’t eroded. The ED can help in this area by leading by example and gently guiding the board when it looks like they may be starting to overreach. Of course, this is a two-way street! If senior staff begin to lean too heavily on the board by delegating their roles to board members, the ED must be willing to correct that behavior as well to avoid overwhelming the board.  

Getting Board Advisory Help
When your organization needs help developing board members and involving them in strategic decision-making, reach out to us! As nonprofit consultants we work with organizations of all shapes and sizes every day, so we have a wide range of experience to draw on when offering board advisory services to our clients. Our team of experienced nonprofit leaders can advise on how to include your board in the day-to-day management of the organization and lean on them for strategic planning guidance in a way that supports both their role and your mission. Contact us today to find out more!

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