The Ironies of Nonprofit Boards & How to Make Them Work for Your Organization
Nonprofit boards are essential, yet their role is often filled with contradictions. Here are a few ironies that might sound familiar:
Irony #1: Boards set the strategic direction of a nonprofit, yet staff members typically have the most expertise in the organization’s mission and operations.
Irony #2: The nonprofit business model was developed to satisfy (important) IRS regulations, not operational efficiency.
Irony #3: Boards hold ultimate legal responsibility for an organization, yet they often have an understanding of their governance responsibilities.
Despite these contradictions, a well-functioning board can play a critical role in ensuring a nonprofit is truly representative of and engaged with the community it serves. However, when the relationship between the board and the Executive Director is strained, these ironies can become roadblocks rather than opportunities.
The Executive Director-Board Dynamic
The board is, technically, the boss of the Executive Director. Yet, as noted in Irony #1, the Executive Director usually has more experience in nonprofit management than board members. This often leads to a unique challenge: Executive Directors find themselves managing the board—driving priorities, pushing for fundraising participation, and even drafting governance policies for board approval.
During board meetings, Executive Directors frequently receive an influx of well-intentioned but overwhelming suggestions:
"If I were you, I’d do this..."
"Have you thought about trying it this way?"
"We should implement this immediately."
While some of these ideas may be valuable, they can also add to the Executive Director’s already full plate, leaving them feeling exhausted, underappreciated, and distracted from core priorities.
Shifting from Reactive to Strategic
A major issue is that many boards simply don’t know what they should be doing. Without a clear framework, they often default to second-guessing management decisions rather than focusing on long-term strategy. This creates a board that is backward-looking rather than proactive.
Key Questions for an Effective Board
To avoid these pitfalls, boards should focus on key governance areas that strengthen the organization rather than micromanaging operations. Here are some guiding questions:
Strategic Vision: Has the board set and approved big-picture goals for the organization?
Fundraising Support: How is the board actively contributing to fundraising efforts?
Policies & Procedures: Are clear and relevant policies in place, including decision-making authority for the Executive Director, gift acceptance, whistleblower protections, and conflict-of-interest policies?
Board Development: Does the board assess its own performance and set development goals? What commitments exist to anti-racism, inclusion, and equity?
Community Engagement: How well does the board understand the community it serves? What can be done to ensure better representation?
Executive Director Support: Does the Executive Director have a current, relevant job description with clear expectations?
Self-Governance: Is the board self-managed, with members holding one another accountable for governance rather than operational interference?
Strengthening Your Board for the Future
By addressing these critical areas, boards can shift from being reactive to strategic, allowing Executive Directors to focus on mission-driven leadership rather than navigating board dynamics. A well-functioning board is proactive, engaged, and aligned with the needs of the organization and its community.
If your board needs guidance in assessing its structure and developing a strategic plan for success, support is available. Reach out to explore how we can help you build a stronger, more effective board that uplifts your mission rather than hinders it.