How Nonprofits Can Reward Board Members Throughout Their Service

Most nonprofit board members would agree that very little in life prepares someone for nonprofit board service. In most cases, people learn governance responsibilities through experience once they begin serving. Over time, members gain knowledge and expertise that allow them to contribute meaningfully to the board’s work.

Because board work is demanding, nonprofit board members deserve recognition for their service. Specifically, intangible and tangible rewards can be provided to board volunteers throughout four stages of board service: recruitment, active service, departure, and post-service engagement. 

1. Recruitment and Nomination 

Recruitment begins board service. The recruitment process requires time and questions. Those who are invited to serve as nonprofit board members, even if not advancing to full member status, receive recognition as someone who brings value to the organization. 

No matter the source of recognition as a candidate, just being asked is a reward few community members receive. 

2. Active Service 

Having the opportunity to make a contribution of experience and knowledge to a valued organization is a reward in and of itself. For many, board member service can also elevate a member’s standing within their workplace, family, and community. 

Intangible Recognition

This status can be magnified when the nonprofit leadership recognizes board members at internal and public events, in newsletters and annual reports, or through structured recognition programs such as a “Board Member of the Year.” 

Being invited to chair a committee and then advancing through officer roles — such as board secretary, treasurer, vice chair, and chair — is another way to reward members for consistency and quality in service.

Tangible Support and Benefits

For tangible benefits, consider quality food during committee and board meetings. Yes, despite the added cost, these are volunteers after all, often lending their time during times otherwise spent at work or with family and friends. 

Training and board development opportunities — whether off-site or at conferences — are also welcome and appreciated ways to build skills beyond the boardroom. 

And of course, members should be reimbursed for mileage or other expenditures incurred in their positions as board members. These are not rewards as such, but do represent an understanding and valuing of members’ contributions, which members can always re-donate if so moved.

Finally, and both tangible and intangible, providing board members with opportunities to publicly represent the organization — such as speaking at conferences or participating in press announcements — increases visibility and standing in the community. Advancement through board leadership roles can also reinforce recognition, responsibility, and trust in a member’s leadership.

Should Nonprofit Board Members Be Paid?

But what about actual payment for time in committees and board meetings, the related preparation, or tasks that might otherwise be contracted to other professionals? 

For-profit organizations compensate their board members — often generously. So why not nonprofit board members? Are they not just as valuable as in the for-profit sector?

Yes, nonprofit board members can be paid. In fact, more than 40% of nonprofits pay at least one board member, according to the National Council of Nonprofits. The IRS does not prohibit nonprofits from compensating board members, but strict rules apply to how organizations compensate them and how much they can be paid (see IRS Revenue Ruling 73-127). State regulations may also apply.

Traditionally, however, nonprofit board service has been viewed as a volunteer function. Prospective donors and funders often believe that board members — acting as stewards of the organization — should not receive financial rewards for their service and that organization funds should instead support mission-driven work.

Budget realities also play a role. Many nonprofits operate with limited resources and minimal financial reserves. For organizations with the financial capacity, however, compensation may still be worth considering.

3. Transition Off the Board 

At a board member’s final meeting, a small celebration with food is often appreciated for recognizing the member’s contributions. Additionally, many boards provide a lasting expression of appreciation with a commemorative gift such as a plate, plaque, medal, or similar token. 

4. Post Service Engagement

Past members may also be rewarded for their service. After a bylaw-specified absence or rest period, boards may consider re-installing former members who bring particularly valuable skills and knowledge back to the organization. Such a return can be both recognition and reward for past service. 

Major events and celebrations should include past board members, whose presence should be acknowledged publicly. 

Finally, past board members should not be forgotten when promotional or fundraising messaging is distributed. Believe it or not, this failure happens frequently, leaving former board members feeling their contributions were not appreciated. 

When this occurs, that negative perception may spread to family, friends, and colleagues, potentially reducing goodwill toward the organization.

Individuals who serve on nonprofit boards often view the opportunity to support a meaningful mission as a reward in itself. Still, board members are human, and recognition matters.

Thoughtful appreciation — whether through visibility, professional opportunities, or formal acknowledgment — can strengthen relationships between board members and the organizations they serve.

When nonprofits recognize contributions across all four stages of board service, the benefits often extend far beyond the boardroom. Strong recognition can transform board members into lifelong supporters who continue to volunteer, donate, and recruit others to support the organization’s mission.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.