Board members should not feel like “docile mushrooms—warm and in the dark.” – McFarlan and Epstein’s Nonprofit Boards: A Guide. This phrase is a vivid reminder that strong governance depends on transparency, engagement, and shared leadership. Effective boards think, question, and act with purpose – they don’t simply meet.
Good governance provides the foundation for nonprofit success and shapes a board culture where members are informed, involved, and inspired to lead. While every nonprofit is unique, the most effective boards share eight best practices that help them govern with excellence.
1. Ensure Essential Practices and Compliance
Strong boards establish clear systems to uphold accountability and compliance. That includes approving budgets, reviewing audits and IRS Form 990s, evaluating the CEO, and maintaining up-to-date succession and recruitment plans. Governance policies—such as whistleblower protection, conflict of interest, and document retention—are not paperwork; they are safeguards for transparency and trust.
2. Strengthen Board Member Engagement
Engagement starts with clarity. Every board member should understand their responsibilities, attend meetings consistently, and come prepared. Written job descriptions, annual assessments, and orientation for new members help build shared expectations. Pairing new members with mentors or “buddies” can turn commitment into confidence.
3. Build a Constructive Partnership with the CEO
A healthy relationship between the board and CEO is rooted in trust, respect, and communication. Boards should conduct regular CEO evaluations, discuss compensation openly, and hold annual one-on-one meetings with leadership. When the board and CEO function as true partners, the organization benefits from aligned vision and stronger execution.
4. Structure Effective Meetings
Productive meetings don’t happen by chance. The best boards set dates early, begin and end on time, and provide materials in advance. Tools like consent agendas, dashboards, and executive sessions keep meetings efficient and focused on strategy rather than minutiae. Preparation is the difference between discussion and decision-making.
5. Maintain a Relevant Board and Committee Structure
A well-organized board balances efficiency with inclusion. Most effective boards meet about six times a year and maintain a manageable number of committees that reflect strategic priorities. Each committee should have a clear charge, defined outcomes, and regular reporting back to the full board.
6. Seek Competent and Diverse Board Composition
Diversity—of background, skill set, age, and perspective—strengthens decision-making. Thoughtful recruitment brings in members who not only represent the community but also challenge assumptions and spark innovation. Term limits and intentional succession planning help maintain healthy turnover and new energy.
7. Foster Effective Communication and Deliberation
Great boards create a culture of inquiry. Members are encouraged to ask tough questions, explore root causes, and engage in strategic and generative thinking—not just fiduciary oversight. Open dialogue builds trust and helps the board lead with clarity and conviction.
8. Plan for Leadership Succession
Succession planning isn’t just about the CEO. Succession planning extends to the board chair and committee leaders. Identifying and preparing future leaders ensures stability and continuity. Strong board chairs foster collaboration, resolve conflicts, and keep discussions focused on strategy and results.
Ultimately, best governance practices are less about structure and more about mindset. When board members are informed, intentional, and engaged, they transform from overseers into visionaries—and that’s where real impact begins.