The 501 S(c)ene

The latest view on not-for-profit accounting issues

Involvement of Nonprofit Board of Directors

Recently I came across an article by Accounting Today that discussed a survey of over 100 not-for-profit leaders who were asked to gauge what they felt about their board members and those members’ involvement. Most spoke positively of their board but reported some challenges broken down below:

  • 15% of the leaders felt the board carefully observes their dashboard performance compared to their peers.
  • 28% thought their board members are highly strategic in providing guidance.
  • 29% said the board connects the organization to external sources.
  • 47% said board members provide their professional capabilities.
  • 45% said the board closely monitors investments.
  • 61% believed their boards are engaged but don’t micromanage.
  • 57% said directors closely monitor expenditures.
  • 54% said board members are active in attending board meetings.
  • Roughly half of those surveyed said board members follow the overall performance of the organization but fail to look into specific programs.

On the positive side, 73% of the nonprofit leaders said their board members are passionate about the mission of the organization. It should be an organization’s strategy to work on involving their board or keeping their board involved. I believe board members actively participating in the organization and its strategies benefit the not-for-profit greatly because it generates better accountability and transparency while at the same time motivating the not-for-profit to be innovative in advancing the organization in its charitable interests.

By Rebecca A. Gornto