NFP Board SizeWhen a nonprofit is new, it may struggle to find an adequate number of board members. But as it grows, its board is also likely to grow — sometimes, to an unwieldy size. The question is: How many directors does your organization need to effectively pursue its mission?

Perks and Drawbacks

Both small and large boards come with perks and drawbacks. For example, smaller boards allow for easier communication and greater cohesiveness among the members. Scheduling is less complicated, and meetings tend to be shorter and more focused. Several studies have indicated that group decision-making is most effective when the group contains five to eight people. But boards on the small side of this range may lack the experience or diversity necessary to facilitate healthy deliberation and debate. What’s more, members may feel overworked and burn out easily.

Burnout is less likely with a large board where each member shoulders a smaller burden, including when it comes to fundraising. Large boards may include more perspectives and a broader base of professional expertise — for example, financial advisors, community leaders, and former clients. On the other hand, larger boards can lead to disengagement because some members may not feel they have sufficient responsibilities or a voice in discussions and decisions. Larger boards also require more staff support.

No Ideal Number for Your Board

State law typically specifies the minimum number of directors a not-for-profit must-have. For instance, in the state of Ohio, ORC Section 1702.27(A)(1) mentions three as a minimum: “The number of directors as fixed by the articles or the regulations shall be not less than three or, if not so fixed, the number shall be three, except that if there are only one or two members of the corporation, the number of directors may be less than three but not less than the number of members.”

But so long as your organization fulfills that requirement, it’s up to you to determine how many total board members you need. So if you’re assembling a board or thinking about resizing, consider such issues as director responsibilities, desirable expertise, fundraising demands, and your nonprofit’s staffing resources.

You may have heard that it’s wise to have an uneven number of board members to avoid 50/50 votes. In such a case, though, the chair can break a tie. Moreover, an issue that produces a 50/50 split usually deserves more discussion.

Good Governance

Increasing the size of a board typically is easier than trimming it. Asking members to resign can be awkward, plus you may need to change your bylaws to shrink your board. In general, it’s best to set a range for board size — rather than a precise number — in your bylaws. For more about nonprofit governance best practices, contact us.

© 2022

Helen Weeber, CPA
Director
HW Nonprofit Advisors
helen.weeber@hwco.cpa