A strong nonprofit board is essential to accomplishing organizational objectives. Here are some important reminders and advice to support the success of your nonprofit board.

Board Composition

The intention is to have a diverse board with expertise in different areas and community representation. To accomplish this, it is recommended that at least two-thirds of board members are independent. This allows board members to bring perspectives that are untethered by financial ties.

Number of Volunteers

A nonprofit board cannot be less than three members per SDCL 47-23-14. Generally, the size of an organization’s board will depend on the type and complexity of the organization. Having a balance is key as too many board members may make it difficult to schedule meetings, make concise decisions, and engage all members. A smaller board may restrict community representation and the ability to provide effective oversight. Overall, a minimum of five members is recommended with the average number of members being 15.

Terms

While there is no requirement to have set terms, they may be established in organizational articles of incorporation or bylaws. In setting or revising existing terms, consider the need for historical organizational knowledge, established networking relationships with the community, new ideas additional board members can bring, and time required for the position to minimize burnout. Industry practice is one to three-year terms for nonprofit board members.

Recruitment and Orientation

It is difficult finding those members of the community who want to donate their time and have the expertise in areas your board is looking for. For the best success at retaining new board members, we recommend setting expectations early and in writing to include number of annual meetings, personal financial contribution requirements, number of committees and special events with board participation, process for nomination and selection of board committees, etc.

Furthermore, we recommend in depth discussions to ensure they are a right fit for your organization to include the organization’s mission, business plan, overview of major programs and operations, organizational policies and procedures, financials, and Form 990.

When new board members accept positions, consider formal training and assigning them to a veteran board member to serve as a mentor.

Committees

Delegating detailed tasks to committees, like Finance or Audit, can help streamline operations while maintaining board oversight. Committee structures should align with a nonprofit’s specific needs and complexity. Remember, the work of the committee does not alleviate the entire board’s responsibility to the organization.

If your organization needs assistance with board member training, you can contact us anytime!