Joining a Nonprofit Board of Directors: An Overview for Donors
If you want to make an impact on the world, you need to understand the organizations that are leading the change. Board participation gives you a window into the work of social change and a way to meet lifelong friends who share your philanthropic purpose and values.”-Aaron Hurst | Board Member, BoardSource
Imagine you are going to make a major financial gift to a nonprofit organization and how you might identify, evaluate, and select an organization that can generate the most impact from your investment. Prior to making this kind of donation, most donors would perform a fair amount of due diligence on the organization and the proposed project. The approach you take to joining a board of directors should be even more rigorous. When you join a board, in addition to making financial contributions, you are assuming legal responsibilities for the organization and committing to make a significant donation of your time, talent and heart.
Research indicates that approximately 2 million board seats need to be filled on an annual basis in the United States. Over three fourths of nonprofit organizations find it difficult to recruit board members; at the same time, a recent survey found that over three-fourths of working professionals would like to join a nonprofit board of directors. Clearly, there is an opportunity to connect those who want to serve on a nonprofit board of directors with the organizations that need committed, talented board members. Yet there is little information available to individuals that highlights how to join a nonprofit board of directors for the first time.
The purpose of this overview is to assist individuals with the process behind identifying and ultimately joining the board of a nonprofit organization. This publication addresses seven key questions related to evaluating a role in nonprofit board leadership:
- Why should I consider serving as a board member of a nonprofit organization?
- How are nonprofit boards different from corporate boards of directors?
- Are there different kinds of nonprofit boards?
- What are the responsibilities of a nonprofit board member?
- How do I find the right nonprofit board opportunity?
- What questions should I ask myself before I agree to be on a board of directors?
- What questions should I ask the organization before I agree to be on their board of directors?
While these questions and accompanying answers are targeted at the first-time board member, they can also be useful and valuable to revisit as you consider existing and future board service opportunities.
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This material is intended for educational purposes only and is provided solely on the basis that it will not constitute investment advice and will not form a primary basis for any personal or plan’s investment decisions. While it is based on information believed to be reliable, no warranty is given as to its accuracy or completeness and it should not be relied upon as such. Information and opinions provided herein are as of the date of this material only and are subject to change without notice. Goldman Sachs is not a fiduciary with respect to any person or plan by reason of providing the material herein. Information and opinions expressed by individuals other than Goldman Sachs employees do not necessarily reflect the view of Goldman Sachs. Information and opinions are as of the date of the event and are subject to change without notice.
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