From the Desk of

Jane DiFolco Parker ¦ Partner

Board or Bored: The Consequential Role of Nonprofit Boards 

According to USAFacts,* there were 1.97M non-profit organizations operating in the U.S. in 2022. Of those, 1.48M were 501(c)(3) tax-exempt organizations, according to the IRS. Chances are pretty good that most, if not all of those 1.48M organizations have a board responsible for providing governance, strategic direction, and oversight. Board sizes vary dramatically; but for the sake of argument, let’s assume the average board size is 15. (Note that, according to BoardSource, in 2007, the median board size, excluding those for churches, was 15). That means that, collectively, there are more than 22M non-profit board members in this country.

Board members are a tremendous source of expertise, financial support, and contacts. They help to ensure that organizations adhere to their missions, and that they remain accountable to their stakeholders, including the communities they service, their donors, and their beneficiaries. Their collective wisdom helps to steer the organization toward achieving its goals, while maintaining financial stability and legal compliance. Volunteer boards (we hope!) contribute to fundraising efforts and resource mobilization and play an active role in cultivating relationships with donors and other supporters, advocating for the organization’s cause, and leveraging their networks to secure funding. In the not-for-profit space, funding is the lifeblood that fuels an organization’s ability to fulfill its mission.

As is true in many sectors, non-profit boards face numerous challenges today. The complexities associated with governance are increasingly difficult in a highly regulated environment. Thus, they must remain informed about legal obligations, financial reporting standards and best practices in governance to mitigate risk and maintain public trust. They must respond to demands for increased transparency and accountability that result from intense public scrutiny and regulatory requirements. And, boards must ensure they include diversity of skills, perspectives, and demographics crucial to effective decision-making and representation of the community their organization serves.

Boards can and should be champions for their organizations, notwithstanding the increased complexities associated with serving, standing with them in times of crisis. It was much easier to effectively fulfill the responsibilities of being a board member when the work of non-profits, especially institutions of higher learning, faced less onerous regulation, and when their work was less politicized. Nevertheless, these roles have seldom been more crucial to the overall health, viability, and positive impact of so many not-for-profit organizations.

What does all of this have to do with our work in philanthropy? Part of our responsibility is to make sure our board members are well-equipped to do their work on behalf of our organizations. Through effective orientation of new board members, ongoing training regarding good governance practices, and clear and transparent reporting and communication, we can keep our board members inspired and motivated to do their consequential work on behalf of our organizations.

The demand for philanthropic support continues to increase, and those of us in the fundraising profession face those demands daily. However, when done well, the investment of our time, effort, and energy in supporting, cultivating, and engaging our board members will generate real return on investment.

*USAFacts is a not-for-profit, nonpartisan civic initiative that strives to make government data easy for all Americans to access and understand.