Who belongs on your board

A good board can add tremendous value to an organisation. The law requires every registered nonprofit to have one, but in the early stages, boards are often made up of friends and family. It rarely evolves to include other kinds of individuals who can add value to the role and to the organisation’s mission. 

Founders of nonprofits in India continue to rely heavily on inviting board members they already have some relationship with, usually directly or through other board members or stakeholders of the organisation. This isn’t always problematic, but it does limit how well an organisation can identify the best person for an effective board role. Nonprofits also tend to prioritise funding and fundraising skills as the key requirement for board involvement. And while this is an important element, given that a lot of funding in India is based on relationships and on the founder’s own credibility, it raises a real question. If a nonprofit wants to strengthen its board beyond its ability to draw in funding, what are the archetypes or profiles that will help create a balanced, effective composition?

An organisation’s stage of growth and the founder’s willingness to be governed are the most critical determinants of board composition. That said, the archetypes below help create a robust, effective composition regardless of the cause, mission, or life stage of an organisation. It’s also important to think about the individuals working together rather than as separate contributors.

1. A systems thinker 

Nonprofits operate in complex systems shaped by multiple internal and external influences. Internal organisational variables include the founder’s passion and competency, their desire to grow, the talent available to execute, and the funding on hand. External variables include the community where they work, the socio-political context, other nonprofits working on the same cause or in the same area, and other factors that influence the intended impact. A good systems thinker brings discussions that will force the organisation to think about all these elements strategically, help with assumptions and second-order effects, and enable the board to think non simplistically. 

Such individuals are usually management consultants at consulting firms, Chief Strategy Officer, or the head of programmes with at least 10 years of work experience in a mature organisation in the same cause or geographical area. 

2. A finance professional 

Nonprofit work is highly dependent on the financial support that it receives. An individual with financial competency will be able to think about the affordability of a programme approach, smarter ways to increase return on investment from an impact lens, the longer-term sustainability of the programme, and predict costs. They can also advise on investment decisions while ensuring compliance with nonprofit regulations.  Even if they don’t have full awareness of this themselves, they will have access to those who do. 

These individuals are usually chartered accountants, CFOs in corporations, senior banking and audit professionals with at least 8–10 years of work experience and are likely to have these competencies or have access to similar expertise. 

3. A marketing and communications professional 

This is critical competency. Very few nonprofits can tell their story or share their impact consistently and authentically, while speaking to all the audiences that matter most. Almost all communication tends to be donor-focused. A good marketing professional enables the organisation to think about how they want to position their work, organisation, and impact to garner greater support from the public at large. The main competency this archetype brings to the board is strategising content, exploring all types of media presence in the context of affordability, measuring the impact of their programme and sharing the same in a manner that is inspiring and attracts support.  Marketing heads of companies, corporate communication professionals, senior members in PR firms, and professionals with this experience from mid-sized organisations are more likely to empathise with the reality of limited resources to invest in this aspect 

4. A technology professional 

This individual can bring process efficiency into all aspects of the organisation both at a strategy level and the application level. They understand process design, what tools out there will bring greater ease of functioning, know how to explore cost savings through smarter ways of working, measure impact and outcomes, gather data and present strategies, and enable the organisation to report appropriately.  They will also have access to free tools and understand how to integrate new technology without compromising on the “human” aspects of the work being done. 

Individuals who fit this archetype usually are process design architects, CTOs in small or medium companies, heads of engineering or product, and data analysts in corporations. Such individuals are also likely to have awareness of, and access to similar resources, and will be able to figure out what solutions are best suited for the organisation. 

5. A culture and people leader 

The culture of an organisation is usually built by the type of founder who runs it. As the organisation evolves and grows, cultures that aren’t managed appropriately will affect performance, and teams will begin to struggle. In a context where talent is a challenge, someone external to the organisation, at arm’s length, can add a lot of value in ensuring that the people practices align with the cause, mission, and performance expectations, rather than being determined only by the founder’s own ways of working. This brings a certain objectivity to the organisation, and also enables it to focus on outcome-oriented work practices.

HR leaders in companies with at least 8–10 years of work experience, especially those who have worked in small or medium organisations, are better able to build an appropriate culture in resource-limited contexts. Indian companies that usually take their lead from the founding team are more likely to have people practices that are culturally aligned and relevant, integrating multiple aspects into the strategy. 

6. An entrepreneur who understands scale 

Most nonprofits want to grow and scale their work. An entrepreneur who has done this themselves is best placed to empathise with the founder, who is often challenged with multiple factors that both enable and deter growth—some within their control, and others not. An entrepreneur is best able to understand when to power through, when to pause and hold back, and what “growing pains” look like. They are also well placed to advise on the possible impacts that any change may have on the organisation, its people and resources, and how to make decisions that create the least disruption.

Any local entrepreneur will be able to bring in this wisdom from personal experience. Ideally someone who is a few years older in their own business than the nonprofit founder, since they will still hold the memory of their own challenges, rather than having moved past that stage entirely. This profile also allows you to “temper” any advice or input that may be given by other board members, more realistically.

Choosing the right archetypes doesn’t guarantee a board that actually works well together. Some important elements to consider are:

1. The above profiles need to work synergistically and not one on one. While one competency may be more important than another at any given point in time, having everyone aware and involved together is what will create a robust board contribution. 
2. The founder needs to help the board understand the organisation’s context, the work, and be honest about their willingness to be governed.
3. Board members need to be clear on what’s expected of them in their own competency areas, beyond overall governance and compliance. 
4. A good induction for the board (and not just individual members) is essential. 
5. The above archetypes apply to most urban organisations and to moderate-to-large rural organisations. 
6. Engagement that inspires the board towards the cause of outcomes and understanding and addressing their own motivations is key to building a non-transactional approach to good governance. 

–

Know more

• Read more about the role of advisory boards in the growth of an organisation. 
• Learn more about how Board composition shapes and organisation’s strategy.