Key Steps to Building a High-Performing Nonprofit Board

Key Steps to Building a High-Performing Nonprofit Board

878 488 Soukup Strategic Solutions

Is your nonprofit Board struggling to stay on track? Managing and organizing Board members can sometimes feel like herding cats. If you’re longing for the day your Board becomes a high-performing nonprofit Board that drives impact and achieves results, you’re not alone.

The first step to transforming a Board from chaotic to cohesive is identifying the underlying issues. Dysfunctional Boards often share common traits, such as unclear roles, ineffective communication, or outdated governance practices. By addressing these factors head-on, you can pave the way for a high-performing Board that drives your mission forward.

The key to any successful governing body lies in a few essential traits: strong leadership, well-defined Board operations, excellent communication, and a shared commitment to working as a cohesive team toward common goals. However, not all nonprofit Boards are created equally.

While some organizations carefully vet and re-elect Board members who contribute significantly to the mission, others fail to prioritize this best practice, leading to challenges in achieving their objectives.

For many organizations, identifying why a Board is a ‘mess’ begins with assessing its composition. To paraphrase Jim Collins in Good to Great, ‘getting the right people on the bus is essential.’ Recruiting and retaining capable, talented volunteer Board members is a complex topic deserving its own discussion. While countless resources exist on nonprofit Board development and efficiency, let’s focus on a few classic issues that can push Boards beyond a “hot mess.”

Overcoming Common Challenges in Nonprofit Boards

Four areas most often identified are:

  1. Rubber stamp Boards – Those that lack critical oversight and simply approve decisions without meaningful input.
  2. Micromanaging Boards – Spending too much time on executive directors, senior staff, or special events rather than strategic goals.
  3. Special interest Boards – Members loyal to specific missions’ objectives only, often referred to as “balkanized Boards.”
  4. Lack of diversity – Boards that don’t reflect the communities they serve, missing out on valuable perspectives and ideas.

Even these types of Boards can function well enough given a strong CEO. However, this article assumes your Board members are well-qualified, committed individuals but don’t function at the expected level. Therefore, it focuses on more easily fixed messy volunteer Boards.

Tackling Dysfunction: Keys to a High-Functioning Board 

One of the main root causes of a dysfunctional Board is a lack of clarity around roles and responsibilities. Make sure each Board member understands their role and what’s expected of them. This includes:

  • Defining clear lines of authority to prevent confusion or overlap.
  • Setting expectations around attendance and participation to ensure full engagement.
  • Establishing protocols for decision-making to streamline processes and avoid delays.

A well-thought-out Board orientation program and officer training are imperative. Without standard operating procedures and proper orientation, frustration can grow, draining the energy out of Board members.

To sustain a high-functioning governing body, a Board members’ handbook, whether physical or electronic, is a must-have for all nonprofits. It ensures professionalism and helps Board members understand their role in the mission’s success. The absence of such materials often results in poor meeting attendance and resignations.

Other shared challenges confronting Boards include:

    • Meetings that never end on time.
    • Absence of a quorum.
    • Members talking out of turn or over one another.
    • Confusion about how to make or pass motions (parliamentary procedure).
    • Inaccurate or missing meeting minutes (including committees).

When critical issues are not addressed in a timely manner, the problem only worsens. Boards are notorious for postponing big decisions that can have negative consequences. Ultimately, the management style of the chief executive also greatly influences how well a Board functions.

Run well, a Board can bolster an organization’s revenues, provide access to influential figures, inspire confidence in stakeholders, help manage risks, improve leaders’ performance, and contribute to crafting a compelling mission and strategy. As Peter Drucker famously said, “Efficiency is doing things right. Effectiveness is doing the right things.”

Steps to Transform Your Board into a High-Performing Team 

A Board retreat is often a big step to resolving strategic issues. As a best practice, retreats should take place annually, even if the goal is just to socialize or engage in light team-building exercises.

People work together more efficiently if they know one another. Spending time together, facilitated by a seasoned professional, can significantly improve the Board’s dynamic. However, retreats must be well-planned, with clear objectives and an understanding of the Board’s challenges.

A comprehensive self-evaluation can help identify performance gaps and inform the retreat’s focus. Tools are available to aid in these evaluations, helping Boards assess their strengths and areas for growth.

Best Practices for a High-Performing Nonprofit Board

Implementing these best practices can help transform your Board into a high-performing and mission-driven team:

  1. Set Clear Expectations During Recruitment
    • Provide a calendar of all Board meetings for the year and emphasize the importance of consistent attendance.
    • Explain committee roles, such as fundraising or governance, and how members will contribute.
    • Highlight key events like galas or donor appreciation nights where participation is critical.
    • Clarify expectations around personal giving or securing donations, if applicable.
  1. Provide a Comprehensive Board Handbook and Orientation Program
    • Include key information such as the organization’s mission, bylaws, financials, and strategic plan. A well-organized handbook fosters professionalism.
    • Host an in-depth session to familiarize members with governance policies and their responsibilities.
  1. Utilize Technology to Improve Communication and Document Sharing
    • Platforms like BoardEffect and Boardable streamline operations with tools for meeting scheduling and secure document sharing.
    • Applications like Microsoft Teams or Slack facilitate communication and engagement between meetings.
    • Leverage nonprofit discounts through TechSoup for affordable technology solutions.

Building an Effective and Comprehensive Board Handbook

A well-designed Board handbook is a critical resource for ensuring clarity and professionalism. When creating your handbook, include:

  • A Professional Cover: Organization logo, handbook name, and issue date.
  • A Warm Welcome: An introduction letter from the Board chair, executive director, and key staff members.
  • Key Sections: Organization overview, roles and responsibilities, bylaws, financials, fundraising expectations, and the strategic plan.
  • Additional Resources: A table of contents, section dividers, and links to online resources.

Helpful Resource: Download a copy of Soukup Strategic Solution’s Board Manual: Sample Table of Contents  

Essential Tips for Running an Effective Nonprofit Board 

  1. Timely Meetings: Always adhere to the timetable set for meetings unless the group agrees to extend.
  2. Parliamentary Procedures: Include a table of basic parliamentary procedures in the Board orientation and handbook. Most bylaws require meetings to be run according to Roberts Rules of Order, which are often overlooked. Reviewing motions and procedures relevant to upcoming business is advisable.
  3. Abide by Bylaws: Ensure Board members read, understand, and follow the organization’s bylaws. If they are outdated or unrealistic, amend them rather than ignoring them.

Real-World Example: In one organization, a lapse in parliamentary procedure allowed the nominations committee to meet in secret, keep no minutes, and elect officers without member input. This violated the bylaws and led to significant trust and legal issues.

Transform Your Board: Key Steps and Expert Support

Transforming your Board into a high-performing, mission-driven team takes commitment, clear expectations, and a focus on collaboration. By addressing challenges like unclear roles, poor meeting practices, and outdated procedures, you can pave the way for a more effective and impactful Board. Remember, a high-performing Board isn’t just about governance—it’s about creating a team that truly drives your nonprofit’s mission forward.

Need help improving your Board’s effectiveness? At Soukup Strategic Solutions, our Governance services are designed to help nonprofits build strong, efficient Boards that lead with purpose. From Board assessments, and training to strategic planning, we’re here to support your success. Request your free consultation today and take the next step toward transforming your Board.

Author

  • Stanton L. Cadow, CFRE

    Stanton Cadow is a consultant at Soukup Strategic Solutions, coaching nonprofit clients on topics such as major gifts cultivation, operations management, volunteer and board training, annual appeals, communications, grant writing, and stewardship. He specializes in conducting feasibility studies, major gift efforts, and capital campaigns.

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