Setting Up Your Nonprofit Board of Directors (2024)

The most important question you should askwhenassessing board prospects is: does your prospective board member have a passion for the mission of yourorganization?If they’renotwilling to give their time, money, and resources, they’renota good fit.Board members should also have some business skills andbe willing(and able!) to help make financial decisions.It canbe temptingto seek wealthy or prestigious names to join your board, but if they arenotpeople of action and enthusiasm, they will be a detriment to theorganization.It should go without saying that board members should have integrity and value compliance and transparency.

It is also important to consider your board as a unit when identifying board prospects. Remember, family members and business associates cannot make up a majority of a public charity’s board. Another important consideration is the range of skills and experience that your board represents. Ideally, your board will represent a diversity of skills that will help support all areas of your nonprofit – fundraising, governance, and programs. Even on a private foundation board, which allows for much closer relationships, having a healthy representation of necessary talents is still vitally important.

The IRS generally requires a minimum of three board members for every nonprofit, but doesnotdictate board term length.What is important to remember is that board service terms aren’t intended to be perpetual, and are typically one to five years. Service terms must be outlined in the nonprofit bylaws.New board members are typically nominated and given an up or down vote by existing board members in traditionalorganizations, and by stakeholder vote in nonprofits that operate via membership.

The IRS expects (and state law usually dictates) that a board of directors should meet a minimum ofoncea year, and best practices suggest four times a year.Duringthese meetings, the annual budgetis passed, andoperationaland strategic decisions requiring votesare discussed.It is important to remember that the board of directors is responsible for the governance of the nonprofit,notthe management.