The good news: Your nonprofit is growing! The better news: Your hard-working board of directors is now able to take a step back from all that doing and start directing.
But how?
With thoughtful planning and intentional action.
The transition from “working board” to “governing board” is a significant milestone for any nonprofit, marking a first step into uncharted territory. To help you venture forth with confidence, we’ve gathered a list of ten best practices and guiding principles, drawn from our decades of experience consulting with nonprofits and leading transitions in our own organizations.
For more details on each of these topics, be sure to check our Board & Governance Resource Hub. For specific questions – or to secure a dedicated partner to help you think through the process – don’t hesitate to reach out to GCN’s Nonprofit Consulting Group directly.
1) Clarify roles and responsibilities.
- Define governance functions: Establish the board’s primary role in governance, focusing on strategic direction, fiduciary oversight, and policy-making rather than day-to-day operations.
- Distinguish staff and board roles: Clearly delineate between the operational responsibilities of staff (or volunteers acting as staff) and the governance responsibilities of the board.
- Provide job descriptions: Develop written job descriptions for board members that emphasize governance duties, including oversight, strategy, and fundraising.
2) Build a strong leadership team.
- Recruit board members with diverse skills: Seek individuals who bring expertise in governance, fundraising, legal, financial, and strategic thinking.
- Elect strong officers: Identify and support board officers (e.g., Chair, Treasurer) who can lead the transition effectively and model governance best practices.
- Develop a succession plan: Ensure leadership continuity by planning for the smooth transition of officers and committee chairs.
3) Invest in capacity building.
- Provide training: Offer training on governance roles, nonprofit financial oversight, and strategic planning.
- Leverage external expertise: Engage consultants or trainers to facilitate workshops and guide the board through the transition process.
- Benchmark against peer organizations: Study governance structures and practices of similar nonprofits that have successfully made the shift.
4) Commit to strategic planning.
- Adopt a strategic plan: Focus the board’s energy on long-term goals and measurable outcomes instead of operational tasks.
- Engage in regular planning sessions: Schedule retreats or workshops for strategic discussions and long-term planning.
- Monitor progress: Regularly review progress on strategic goals during board meetings.
5) Establish and empower committees.
- Create standing committees: Assign specific governance-related responsibilities (e.g., Finance, Development, Governance).
- Empower committees to act: Allow committees to do the preparatory work for the board, enabling meetings to focus on decision-making rather than operational details.
- Dissolve redundant committees: Eliminate or transition committees focused on operational activities to staff or volunteer teams.
6) Strengthen organizational infrastructure.
- Hire or empower staff: Build a strong leadership team (e.g., Executive Director and key staff) to handle day-to-day operations.
- Develop policies and procedures: Implement clear policies that guide operational work, reducing the need for board involvement in daily tasks.
- Invest in systems: Adopt systems (e.g., financial management, CRM) that enhance operational efficiency.
7) Foster a culture of accountability.
- Focus on metrics and outcomes: Hold the board accountable for governance outcomes, such as policy adherence, financial health, and mission impact.
- Conduct self-assessments: Regularly evaluate the board’s performance and identify areas for improvement.
- Adopt a governance mindset: Cultivate a culture where board members see themselves as stewards of the organization rather than operational volunteers.
8) Communicate the vision and benefits.
- Engage stakeholders: Involve current board members, staff, and other stakeholders in conversations about why the transition is necessary and beneficial.
- Celebrate milestones: Recognize and celebrate progress toward becoming a governing board.
- Emphasize impact: Highlight how the shift allows the organization to achieve greater strategic impact and sustainability.
9) Plan for a gradual transition.
- Set clear milestones: Develop a phased timeline with milestones to track progress.
- Address resistance: Acknowledge and address concerns from board members who may resist the change, providing support to help them adapt or gracefully transition off the board.
- Recruit new members: Bring in new members who align with the governance-focused vision of the board.
10) Leverage external resources.
And keep in mind: The transition from a working board to a governing board is an ongoing process that requires commitment from both the board and staff. By focusing on these principles and practices, your organization can position itself for long-term success and sustainability.
Again, our Board & Governance Resource Hub is your always-available index of board best practices, process explanations, and downloadable tools – while our Nonprofit Consulting Group is ready to provide hands-on support for any board challenges your nonprofit may face.
