Choosing a Nonprofit Board of Directors

Today, I’ll be discussing the challenge of choosing a nonprofit board of directors. The board of directors is the governing body of the nonprofit organization. This means the board sets the direction of the organization, makes most crucial decisions, and delegates day-to-day tasks to the Executive Director and others in the organization.

That means that choosing a nonprofit board of true leaders (those who will DIRECT, if you will) is extremely important. These people will have operational, financial, marketing, fundraising, and compliance responsibilities. Your job as a nonprofit founder is to recruit a board with sufficient talent, connections, finances, and time to execute your mission to its fullest.

This post will address the minimum legal requirements, when you need a board, whom to choose, and how to recruit your team.

What Do I Need?

Let’s start with the basics, that is, what is the legal minimum, or the “skeleton” of requirements?

If you’re familiar with the US Constitution, you know that states have the right to make their own laws. As a result, each state has a minimum number of required directors and officers for a nonprofit organization, as well as age requirements, and rules on internal procedures, such as quorum (voting) and term limits. While this is a bit complicated, we’ve simplified your state’s requirements in this handy chart.

Failing to maintain these minimum standards means your nonprofit is noncompliant, and you risk penalties at the state’s discretion.

When you’re first getting started, plan to recruit at least the minimum. In your bylaws, you’ll outline voting procedures, address resignation and dismissal policies, and set term limits. Be sure to include a provision for adding new board members as your organization grows.

When Do I Need to Have a Board?

Your organization must have a board of directors. The good news is that choosing a nonprofit board doesn’t need to happen right away. Most states do not require you to list a board of directors on the Articles of Incorporation, nor do you need a board to obtain an EIN. In most cases, you can incorporate your nonprofit organization, and while you wait, you can brainstorm and choose the people you’d like to sit on your board.

If you’re serious about starting a nonprofit organization, you’ll get quickly to task. After you incorporate and obtain an EIN, you will need to list an initial board of directors in your bylaws, and you’ll definitely need to disclose that list when you apply for 501c3 tax exemption.

In any case, the earlier you have a board, the better, but you can still start the nonprofit formation process without one.

Who to Choose for a Nonprofit Board?

The board of directors is the governing body of the nonprofit organization. Almost no decision can be made without consent of the board. These people should be motivated, responsive, and professional.

You want your board to consist of individuals whose talents, skill set, and drive all contribute to your mission, and add value to your organization. Any single board member not pulling his weight can simultaneously bring down the performance of the entire organization.

For example, you might consider attorneys, accountants, civic leaders, local influencers, and specialists whose careers blend nicely with your mission. These people will bring valuable connections and talents, and might even become your best fundraising tool.

Ask yourself a series of questions: What is your mission? What skills do you, or existing board members lack, which you are trying to recruit? What connections, influence, or financial resources does that prospective board member bring to your organization? Is that board member passionate about your cause and mission? Do they have enough time to serve capably on your board, and to balance the rest of their life?

A football team of entirely wide receivers wouldn’t get very far in the NFL. In the same way, having a homogenous board won’t get you very far as a nonprofit organization. Choose a diverse board: one with many connections, skills, and talents, and give yourself the best chance at winning.

How to Recruit a Nonprofit Board?

Choosing a nonprofit board, and imagining the talents you’d like to have, is relatively simple. Finding, persuading, and recruiting a nonprofit board can be more difficult. As a new nonprofit, you might struggle to find board members willing to invest time or money in a risky venture. The best place to start is through existing personal and business connections. Try to leverage your existing relationships, and in the process, you’ll gain valuable feedback on your idea through people’s responses. If that doesn’t work, our friends at BoardSource have a great Board Recruitment tool. If you’re seeking a board member, or wish to serve on a nonprofit board, be sure to check out the Board Recruitment Center.

Recruiting a nonprofit board also takes salesmanship. If I write in my blog post that Harbor Compliance has a super awesome nonprofit formation service, would you instantly believe me? Maybe, but you’d be more likely to agree once you called us, worked with us, or even checked out more of our website. When you communicate your organization’s mission to board members (and donors, too), you must demonstrate value. Don’t just tell them what you’re going to do, give them substantial evidence of it!

Lastly, it takes patience, and a bit of luck. If your organization’s mission is valuable enough, board members will be naturally encouraged to join you. Best of luck in your search!