How to Incentivize Nonprofit Board Members’ Performance

Nonprofit executives and board chairs frequently express their frustration with the performance of their board members. Typical complaints include: 

• Mediocre meeting attendance.
• Limited or no participation in board meetings when members do come.
• Not serving on a committee.
• Not making an annual financial contribution — never mind not asking others to make gifts or pursuing legislative action. 

At the same time, there is little recognition of the tangible and intangible sacrifices and gifts board members make to support a nonprofit’s mission.

So, what is the deal, and might there be adoptable solutions to the extent nonprofit board members at best do only the minimum? I believe the answer to this dilemma is “absolutely!” There are actionable possibilities. Here are six suggestions. 

1. Match Your Board Member’s Motives and Interests

During the recruitment interview and orientation process, governance committees and board chairs should learn what a member wants and needs, as well as what drives them. They can use this information to ensure each member’s interests, needs and wants align with the organization.

2. Create Meetings That Are Interesting, Engaging and Results-Focused

I know this may sound obvious but most who have served or currently serve know that board meetings can be really boring with limited discussion and few decisions or actions. This reality rarely satisfies interests or needs. Board chairs, adjust meeting agendas to add “getting-to-know-you” exercises, as well as fiduciary, strategic and generative content that provides opportunity for concrete discussions and action. 

3. Establish a Criteria for Board Member Assignments

Meaningful assignments get governance tasks accomplished and retain member involvement. The chair, officers and/or the governance committee should establish criteria for committee and other assignments to ensure these assignments match with members’ needs and interests. 

Standing committees are rarely efficient or effective and frequently reduce member interest over time. Ad hoc committees — those formed for a specific purpose and outcome — are more ideal for retaining interest, creating enthusiasm and producing tangible results that the full board can use immediately. However, the bylaws may need to be adjusted to reflect the creation of these committees. 

4. Rotate Meeting Chairs

Rotating business meeting chairs provides each member with a deeper understanding of and experience with leading the organization. It also increases each member’s interest in, understanding of and engagement in the fiduciary, strategic and generative work of the board. 

This tactic is also a training and development activity that can bring out the shyness from some members and demonstrates the gifts of others. Rotating chairs may require a bit more prep time for the board chair, but the benefits can prove significant for each member and the organization relationally and transactionally. 

5. Provide Opportunities to Build Personal Skills and Networks

Nonprofits benefit from board members telling legislators, friends and others the organization's story at every opportunity. And yes, board members may join other members in asking for financial and other support or even taking on events. 

6. Offer Stipends and Expense Reimbursements

While often a controversial subject, financially compensating the service time of board members may be helpful toward recruiting, activating and retaining board members. For-profit board members are incentivized to serve via intangible and tangible benefits. 

For-profit practices are not a perfect comparison, but that should not exclude nonprofits from considering the offer of tangible benefits for service while recognizing that nonprofit board members do not serve for the money. Additionally, not all nonprofit board members have equal 

Intangible Benefits

Intangible benefits include gleaning industry information, participating in networking opportunities and achieving status, as well as a hefty financial compensation. 

Tangible Benefits

At minimum, tangible benefits for board members should include compensation for child care, related travel costs (e.g., mileage) or other expenses. 

It is also reasonable to offer a stipend at a level that recognizes the efforts for service. Board members can certainly donate their stipend if desired. Also, in making stipends a commitment, it is important to recognize that donors and grant makers want their contributions to be expended on direct service, not those who “own” the nonprofit. 

Finally, please feed the board members at meetings. Potlucks may be fun, but these impose additional work on members. Feeding is part of the care a board wants to provide to express an understanding of the sacrifices and contributions made by those who serve.

Like in every part of life, understanding the tangible and intangible interests, needs and wants of those who serve on boards is essential to recruiting, engaging and retaining those who serve on nonprofit boards. 

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.