Summary

It is now recognized that just as nonprofits pass through identifiable organizational phases, so do nonprofit boards. In broad terms, there are three phases in the life cycle of a nonprofit board: 1. The organizing board 2. The governing board 3. The institutional board Organizing boards are typically small, homogeneous, and not very involved in governance. Governing boards are typically larger, more diverse, and accept responsibility for governance. Institutional boards are typically quite large, delegate governance to committees, and spend most of their time providing access to funders and other influential members of their communities.

The Background

Let`s see how the organizing board might work in practice. In 2004, David Waitt founded Tomorrow`s Adolescent Fund, a 501(c)(3) organization dedicated to helping children with unusual bone disorders. The tax exempt laws required him to form a board, and he chose two of his best friends to serve with him. These two board members were very supportive of the organization`s mission,trusted David implicitly, but had no interest in administrative or fundraising tasks. By 2006, David discovered that the organization was faltering under the weight of its ambitious mission, and David was totally burned out.

The Solution

There was not enough money in the bank account to pay expenses, and David realized that he needed the help of the board to assure the organization`s future.

Lessons Learned

This example illustrates the limitations of the organizing board. It can work temporarily, especially with a strong-willed founder who does not want any interference in the running of the organization. Eventually, however, even the founder realizes that he/she needs help in managing an ncreasingly complex organization, and that the board must play a role if the organization is to continue to prosper and grow. This is usually the start of a sometimes painful set of steps that result in the board accepting responsibility for governance (setting direction,oversight, and undraising). It is also a necessary part of the journey towards the next phase - the governing board.