Determining your nonprofit’s board size: What’s the magic number?
by Bill Newell, controller, VonLehman CPA & Advisory Firm
Recruiting and retaining committed board members is a never-ending process. For many not-for-profit organizations, determining an appropriate-sized board takes time. Although state law typically sets the minimum number of directors a nonprofit must have on its board, it’s up to each organization to determine how many board members it needs. The number of allowable board members should be stated in the organization’s Articles of Incorporation or Bylaws.?Once your board size meets its state requirement, what should you consider? Both small and large boards come with perks and drawbacks.
Small boards
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. Plus, the members’ higher level of involvement can heighten their satisfaction.
Several studies have indicated that group decision-making is most effective when the group size is five to eight people. But boards on the small side of this range may lack the professional expertise (finance, marketing, information technology, legal, governance, etc.) or diversity necessary to facilitate healthy deliberation and debate. And members may feel overworked. This can lead to burnout and an early departure.