What is the role of a non-profit board?  Are Boards important to the health of non-profit in today’s day and age or has the sector outgrown the need for traditional governance structures?

The corporate model of governance can be counterintuitive to the mission of a non-profit organization.  Jim Collins in the monograph “Good to Great and Social Sectors” poignantly pointed out that “in business, money is both the input and an output.  In social sectors, money is only an input and not a measure of greatness,” he goes on to note “the critical question is not ‘How much money do we make per dollar of invested capital?’ but ‘How effectively do we deliver on our mission and make a distinctive impact, relative to our resources?” (2005, p.5) When pondering over how greatness and success is measured in the non-profit sector, one must ask what is the role of the Board of Directors in ensuring the greatness of the non-profit organization?  Is it simply to review financials reports and hold inquisitions of the Executive Director?  Or is it to truly be invested in the mission of the organization and wanting to see the creation and execution of successful programs that meet the needs of society or a sub-section of society? Yes, a Board’s main role is oversight and accountability to ensure the financial health of the non-profit organization, but that should not be its only goal. As Fisman, Khurana and Martenson note in the article, “Mission Driven Governance” there should be governance model that focuses “on the board’s role in positioning an organization through mission and strategy.” (2009, p.43)  The board should also focus on the performance and effectiveness of programs designed to meet the mission and determining a measurement of impact and outreach.  When considering the role of the non-profit’s role in the governance of a non-profit, performance should receive as much precedence as the financial health of an organization and compliance with regulations.  Board members should be positioned to help advance the mission of the organization as well, personally and professionally.  Additionally, board members should represent and advocate for all of the stakeholders ultimately affected by the execution of the mission of the non-profit.