Nonprofit Boards Urged to Shift from Fundraising to Governance Focus

What's Happening?

Vu Le, author and creator of the NonprofitAF.com blog, has released a new book titled 'Reimagining Nonprofits and Philanthropy: Unlocking the Full Potential of a Vital and Complex Sector.' In this book, Le challenges traditional views on the role of nonprofit boards, advocating for a shift from a 'power-over' to a 'power-with' approach. He argues that boards should not be seen as the bosses of executive directors or staff but rather as co-equal partners in governance. This perspective aims to reduce the ego and micromanagement often associated with board roles, which can hinder the effectiveness of nonprofit operations. Le also suggests that fundraising should not be a primary function of boards, as it detracts from their main duty of governance. Instead, fundraising responsibilities should fall to the executive director and staff, allowing boards to focus on governance and accountability.

Why It's Important?

The proposed shift in nonprofit board roles could have significant implications for the sector. By focusing on governance rather than fundraising, boards may become more effective in their oversight roles, ensuring that organizations adhere to their values and operate efficiently. This change could also improve morale among staff and board members, as it clarifies roles and reduces unrealistic expectations. Additionally, removing fundraising from board duties could lead to more diverse boards that better reflect the communities they serve, as recruitment would focus on skills and lived experiences rather than financial connections. This could foster more egalitarian boards where all voices are valued equally, potentially leading to more inclusive and effective nonprofit organizations.

What's Next?

If nonprofit organizations adopt Le's recommendations, they may need to restructure their board roles and responsibilities. This could involve redefining governance practices and developing new strategies for fundraising that do not rely on board members. Organizations might also need to invest in training and development to ensure that board members are equipped to fulfill their governance roles effectively. Additionally, nonprofits may need to engage in dialogue with stakeholders to explain the benefits of these changes and gain support for the new approach.

Beyond the Headlines

The shift in board roles could lead to long-term cultural changes within the nonprofit sector. By prioritizing governance and accountability, organizations may become more transparent and trustworthy, potentially increasing public confidence and support. This could also encourage other sectors to reevaluate their governance structures, promoting a broader movement towards more equitable and effective organizational practices.