Principle 10: Board Size And Structure

Every charitable organization needs to establish the structure and size of their board. There should be enough board members in order to have different ideas and thoughts on governance and other organizational matters. This doesn’t pertain to smaller charitable organizations in which they should have at least five board members.

-The charitable organization’s board size should be based directly on the needs of the organization.

-The way for determining board size is the function that they serve. The structure and size of the board will naturally be different
as time progresses, thus the size and structure should be reviewed as the organization grows.

-Other things can affect the size of the board, such as the need for diversity, workload, phase in the life cycle, legal mandates, and maintaining a manageable group.

LEGAL AND COMPLIANCE ISSUES

-All state laws will define the minimum size for your organization’s nonprofit board.

-External entities, such as government agencies, memberships, and parent organizations, may dictate on the board’s size.

-The IRS Form 990 asks for organizations to give the amount of independents directors that serve on the board.