Gregory Nielsen
Conversation Date: September 17th, 2024 12pm CST
Listen:
Watch:
Read Overview:
The Importance of Nonprofit Board Assessments: A Conversation with Gregory Nielsen
In the world of nonprofit organizations, effective governance plays a critical role in success. Yet, many nonprofit boards overlook one key tool for growth and improvement—board assessments. In this episode of the Million Dollar Nonprofit Podcast, I sat down with Gregory Nielsen, President and CEO of Nielsen Training and Consulting, to discuss why board assessments are essential, and how they can help ensure long-term success.
Why Board Assessments Matter
As nonprofits work towards fulfilling their missions, the board’s role extends far beyond just advising. Gregory likened board assessments to routine maintenance, such as getting an annual physical or rotating your car’s tires. You wouldn’t wait for a crisis to occur before addressing potential issues, and the same principle applies to nonprofit boards. Regular assessments provide an opportunity to reflect on what’s working, identify areas for improvement, and set priorities for the coming year.
Gregory highlighted that board members typically want to perform well—they just need the right tools and feedback to excel. Assessments provide a chance for members to articulate where they’re excelling and where they need more support, such as fundraising training or communication skills. The goal is to avoid waiting until there’s a “fire” before making necessary changes. Proactive assessments help boards maintain focus and momentum.
How Small Nonprofits Can Conduct Board Assessments
For smaller nonprofits, Gregory recommends starting with the basics. This involves setting clear expectations for board members in areas such as financial oversight, fundraising, and strategic planning. By doing an informal review at the end of each year, boards can evaluate how well they met these expectations and whether additional support is needed.
For many small nonprofits, board members join with a strong desire to help but may not have the training or resources to meet all expectations. An annual check-in allows board members to ask for the support they need to be more effective. After all, no one joins a board wanting to drag it down—often, they simply need guidance to fulfill their roles.
Balancing Emotional and Strategic Decision-Making
A common challenge for nonprofits is that many boards are initially composed of friends and family who are emotionally tied to the cause. While this can be beneficial in the early stages, as the organization grows, it’s important to bring in outside perspectives with strategic expertise. Gregory noted that nonprofit boards, like businesses, evolve over time. What begins as a founder-led organization often transitions into a more mature entity with the board taking on a more strategic role.
Friends and family might be passionate, but nonprofit growth requires a board that can offer more than just emotional support. By bringing in experts from outside the founder’s inner circle, nonprofits can gain new insights and make more data-driven, strategic decisions that lead to long-term sustainability.
The Ideal Board Size and Structure for Growing Nonprofits
Another common question is how large a board should be as a nonprofit grows. Gregory emphasized that smaller boards can be more nimble and efficient, especially in the early stages. He recommends starting with four to six committed members to allow for flexible decision-making.
As the organization matures and its budget increases, the board size can grow as well, typically averaging around 12 members. However, once a nonprofit surpasses the $1 million mark, board sizes often expand to 15-20 members. Larger boards provide more perspectives but can also become unwieldy if not properly managed.
Effective Methods for Conducting Board Assessments
Gregory outlined two common approaches to board assessments: surveys and one-on-one interviews. For smaller organizations with limited resources, a simple survey can be a quick and effective way to gather feedback. The real value, however, comes from the discussion that follows. As the board reviews the results, they can identify areas for improvement and set concrete goals for the future.
For larger nonprofits with more complex needs, Gregory recommends incorporating one-on-one interviews with board members and the management team to get a well-rounded view of board performance.
Recruiting the Right Board Members
Effective boards are composed of “doers, donors, and door openers,” according to Gregory. Board members should be ready to roll up their sleeves and contribute, be passionate about supporting the mission, and use their networks to open doors for the nonprofit. It’s also important to recruit board members who bring unique skills, such as legal or financial expertise, that the organization needs to thrive.
Final Thoughts: Routine Board Assessments Lead to Success
Regular board assessments are a vital part of any nonprofit’s governance strategy. They help ensure that board members are meeting expectations, receiving the support they need, and holding themselves accountable. Gregory stressed that the value of assessments isn’t in the act of filling out a survey, but in the conversations that follow—conversations that lead to better decisions, more effective governance, and ultimately, greater impact.
For nonprofit leaders looking to strengthen their boards and set their organizations up for success, bringing in a third-party facilitator like Gregory can make all the difference. With an outside voice guiding the process, board members can focus on having productive discussions and setting actionable goals for the future.
Gregory Nielsen
Consultant | Facilitator | Nonprofit CEO | Keynote Speaker | Partnering with nonprofits to translate vision into reality
More Resources
Frequently
Asked Questions
Board assessments provide a regular check-up on the board’s performance, ensuring members are meeting expectations and identifying areas for improvement. They help nonprofits proactively address issues before they become major problems and set priorities for the future.
Most organizations should conduct board assessments annually. Regular assessments keep the board aligned with the nonprofit’s goals and allow for continuous improvement. Some organizations also opt for biannual or quarterly check-ins, especially if they’re going through periods of rapid growth or change.
Small nonprofits can begin with a simple checklist or survey that evaluates performance in key areas such as financial oversight, fundraising, and strategic planning. This can be done internally and doesn’t require many resources. The key is to set clear expectations and review progress regularly.
Nonprofits should look for board members who are “doers, donors, and door openers.” These individuals should have the time and commitment to contribute, relevant skills the organization needs, and the willingness to support the nonprofit financially or through their networks.
While smaller boards of 4-6 members are more nimble in the early stages, as the organization grows, boards typically expand to 12 members. Nonprofits with budgets over $1 million might have 15-20 board members. The size should allow for diverse perspectives without becoming too large to manage efficiently.
It can be beneficial for major donors to serve on the board, but it shouldn’t be the sole reason for their inclusion. Their skills, talents, and commitment to the nonprofit’s mission should also be taken into consideration. It’s important to avoid undue influence by any single board member, especially if they are a major donor.
It’s important to have a structured process for board recruitment and assessment. If someone isn’t a good fit for the board, offer them other ways to contribute, such as serving on a committee or as a volunteer. Setting clear expectations and having a vetting process helps avoid difficult situations later on.
Before bringing in a third-party facilitator, nonprofits should ensure all board members are clear on their roles and expectations. It’s also helpful to address any internal conflicts or issues ahead of time, so the facilitator can focus on helping the board set priorities and action steps, rather than resolving basic role clarifications.
These FAQs address common concerns about nonprofit board assessments and provide actionable steps for organizations to improve their governance.