Category: Boards

Demystifying Nonprofit Jargon: The Ultimate Glossary for Board Members & Staff

Nonprofit jargon. If you’re new to nonprofit work, it’s confusing. If you’re a veteran of the sector, you’ve seen it evolve. Either way, nonprofit jargon is here to stay, so learn (or brush up) below.

Estimated reading time: 9 minutes

Key Takeaways

  • The article outlines 10 critical”nonprofit jargon” terms for board members and staff, including 501(c)(3), fiduciary duty, and restricted funds.
  • It provides a full glossary divided into sections like fundraising, grants, finance, governance, and program evaluation.
  • Key definitions include ‘annual fund’ as essential for operations and ‘logic model’ as a visual roadmap of organizational activities.
  • Commonly misused nonprofit jargon terms are clarified, such as distinguishing impact from output and social enterprise from fee-for-service.
  • Understanding these terms helps board members and staff effectively manage their nonprofit organizations.

Table of contents

The 10 Most Critical Nonprofit Jargon Terms for Board Members & Staff

  1. 501(c)(3): The specific section of the US Tax Code that grants an organization tax-exempt status and allows donors to receive tax deductions for their gifts.
  2. Fiduciary Duty: The legal and ethical obligation of board members to act in the best interest of the organization, ensuring its assets are managed responsibly.
  3. Restricted Funds: Donations that are legally “locked” to a specific purpose or timeline set by the donor. They cannot be used for general operations without donor consent.
  4. Annual Fund: The “lifeblood” of an organizationโ€”fundraising dedicated to supporting the everyday operating budget (salaries, rent, utilities).
  5. Logic Model: A visual roadmap that connects what you have (Inputs) to what you do (Activities) and the results you achieve (Outputs/Outcomes).
  6. Stewardship: The ongoing process of thanking, informing, and engaging a donor after they have given, which is key to donor retention.
  7. Overhead: The administrative and fundraising costs necessary to run the organization. While often scrutinized, it is essential infrastructure for impact.
  8. Form 990: The annual “tax return” for nonprofits. It is a public document that provides transparency on the organization’s finances, mission, and executive pay.
  9. Mission Drift: A danger zone where an organization strays from its core purpose to chase grant money or popular trends.
  10. Theory of Change: The big-picture “Why” behind your work. It explains the underlying logic of how your specific interventions lead to the desired social change.

Full Nonprofit Jargon Glossary by Subject Area

I. Fundraising & Development

Advancement

  • Definition: Often used in hospitals and higher education to define an office including fundraising, marketing, and admissions.
  • Usage: “We’ll have to pass it by the Advancement Office to see if he is on their radar.”

Annual Fund

  • Definition: A program soliciting gifts to support the annual operating budget.
  • Usage: “Please consider a contribution to our annual fund to keep the lights on.”

Bequest (Planned Giving)

  • Definition: A donation made through a person’s will or estate plan.
  • Usage: “We need to market our planned giving program to encourage more bequests.”

Capital Campaign

  • Definition: A targeted fundraising effort for a major project, usually a building or massive endowment boost.
  • Usage: “We are launching a $5 million capital campaign to build the new center.”

Case for Support

  • Definition: The core document outlining why a nonprofit needs funding and what the money will accomplish.
  • Usage: “We need to tighten up our case for support before the big gala.”

Community-Centric Fundraising (CCF)

  • Definition: A model that prioritizes the entire community over individual donor appeasement.
  • Usage: “Moving toward CCF, we stopped hosting exclusive galas for potlucks.”

Cultivation

  • Definition: The process of building a relationship with a prospect before asking for a gift.
  • Usage: “After months of cultivation, we finally invited him for a site visit.”

Donor Retention Rate

  • Definition: The percentage of donors from a previous year who give again in the current year.
  • Usage: “Our retention rate dropped to 40%, so we need to improve our stewardship.”

LYBUNT / SYBUNT

  • Definition: Acronyms for “Last Year But Unfortunately Not This” and “Some Years But Unfortunately Not This.”
  • Usage: “We are running a special campaign targeting our LYBUNT donors.”

Major Gifts

  • Definition: The largest donations an organization receives, requiring personalized cultivation.
  • Usage: “The campaign relies on securing three major gifts of $1 million or more.”

Moves Management

  • Definition: A system for “moving” a prospect into a deeper relationship with a nonprofit.
  • Usage: “Our officer uses moves management to track each prospect in the cycle.”

Stewardship

  • Definition: Relationship building after a gift is made (thanking and reporting).
  • Usage: “Good stewardship means the donor feels appreciated long after the check is cashed.”

II. Grants & Philanthropy

Community Foundation

  • Definition: A philanthropic institution that manages funds for a specific geographic area.
  • Usage: “We applied for a grant from the local community foundation for the cleanup.”

Donor-Advised Fund (DAF)

  • Definition: A vehicle where donors receive a tax benefit and recommend grants over time.
  • Usage: “We received a grant recommended by a family through their DAF.”

Letter of Inquiry (LOI) / RFP

  • Definition: An LOI is a brief introductory letter; an RFP (Request for Proposals) is a formal invitation to apply for a grant.
  • Usage: “The foundation requires an LOI before you can submit a full proposal.”

Program Officer

  • Definition: The person at a foundation who manages a specific mission area and works with applicants.
  • Usage: “Our program officer advocated for our proposal to be approved.”

Program-related investment (PRI)

  • Definition: A low-interest loan made by a foundation that must be repaid but counts as a charitable gift.
  • Usage: “The foundation provided a $1 million PRI to help us build affordable housing.”

Trust-Based Philanthropy

  • Definition: An approach focusing on unrestricted funding and streamlined reporting to address power imbalances.
  • Usage: “The foundation adopted trust-based philanthropy, so we no longer submit detailed expense reports.”

Articles of Incorporation / By-laws

  • Definition: Legal documents that establish the organization and its governing rules.
  • Usage: “According to our by-laws, we must have at least three officers on the board.”

Directors and Officers (D&O) Insurance

  • Definition: Liability insurance protecting board members from personal losses due to legal action.
  • Usage: “She made sure the nonprofit carried D&O insurance before joining the board.”

Fiscal Sponsorship

  • Definition: An arrangement where a 501(c)(3) provides tax-exempt status to a project lacking its own.
  • Usage: “The project operates under the fiscal sponsorship of an arts nonprofit.”

Form 990

  • Definition: The annual nonprofit tax form in the USA.
  • Usage: “You can look up any nonprofit’s Form 990 on GuideStar.”

Restricted Fund

  • Definition: A donation that must be used for a specific purpose or timeframe.
  • Usage: “We cannot use the restricted fund for the electric bill; it is for scholarships.”

Unrelated Business Income Tax (UBIT)

  • Definition: Taxes on income from activities not directly related to the charitable mission.
  • Usage: “Because we sell ad space in our magazine, we have to calculate our UBIT.”

IV. Governance, Strategy & Leadership

Ex Officio

  • Definition: A member of a board who is there by virtue of holding another office (usually non-voting).
  • Usage: “The Executive Director serves on the board ex officio.”

Founderโ€™s Syndrome

  • Definition: When a founder resists growth or change, maintaining disproportionate power.
  • Usage: “The organization is suffering from Founder’s Syndrome.”

Mission Statement / Vision Statement

  • Definition: The mission is the purpose; the vision is the ideal world resulting from that purpose.
  • Usage: “Our vision is ‘A world where every child has access to clean drinking water.'”

Strategic Plan

  • Definition: A 3-5 year document outlining goals and strategies.
  • Usage: “Our new strategic plan says we will expand into three new counties.”

V. Program, Impact & Evaluation

Beneficiary

  • Definition: The individuals or groups directly served by the mission.
  • Usage: “The primary beneficiaries of this grant will be single mothers.”

Logic Model

  • Definition: A visual roadmap showing how resources lead to activities and results.
  • Usage: “We attached a logic model mapping out our inputs and expected outcomes.”

Outputs vs. Outcomes

  • Definition: Outputs are the work done (meals served); outcomes are the change achieved (reduced hunger).
  • Usage: “While outcomes are more important, our reported outputs included 10,000 meals.”

Theory of Change (ToC)

  • Definition: A description of how and why a desired change is expected to happen.
  • Usage: “Our ToC argues that housing first is the key to solving unemployment.”

VI. Operations, Management & HR

Capacity-building

  • Definition: Building systems and financial strength so the nonprofit can better serve its mission.
  • Usage: “We received a grant to upgrade our donor database.”

Infrastructure

  • Definition: The internal systems, technology, and staff required to keep the nonprofit functioning.
  • Usage: “We need funding to improve our IT infrastructure.”

Overhead

  • Definition: Admin and fundraising costs not tied to a specific program.
  • Usage: “Our goal is to keep our overhead expenses under 15%.”

Nonprofit Lingo 101: Commonly Misused Nonprofit Jargon Terms

Impact vs. Output

  • Impact is the long-term, systemic change (e.g., lower poverty rates).
  • Output is the immediate quantity (e.g., number of brochures printed).
  • Don’t say “Our brochure had a huge impact.” Say “Our brochure reached 1,000 people (output).”

Social Enterprise vs. Fee-for-Service

  • Social Enterprise is a business venture (like a thrift store) that funds the mission.
  • Fee-for-Service is charging the client a small fee for the mission activity itself (like a $10 clinic visit).

Hard Credit vs. Soft Credit

  • Hard Credit goes to the entity that signed the check (e.g., The Smith Family Foundation).
  • Soft Credit goes to the individual who made the gift happen (e.g., Mr. Smith).

Underserved vs. Underrepresented

  • Underserved means a community lacks resources (e.g., no health clinics).
  • Underrepresented means a group lacks a voice in leadership (e.g., no women on the board).

Frequently Asked Questions

Q: Instead or nonprofit jargon why can’t we just use standard business terms like “customer,” “investor,” or “profit” in a nonprofit?

A: While some business terms are crossing over, using them exclusively can cause “mission drift” or legal confusion. Referring to a donor as an “investor” implies they will get a financial return, which is legally untrue in a nonprofit. Calling a beneficiary a “customer” can minimize the complex vulnerabilities they might face. And while nonprofits can make a financial surplus, legally they cannot distribute that “profit” to individuals; it must be reinvested back into the mission. Using precise nonprofit terminology protects the organization’s legal status and core values.

Q: Why is the concept of “overhead” treated differently in nonprofits than in businesses?

A: In the business world, administrative costs and infrastructure (like good software or HR teams) are viewed as necessary investments for growth. In the nonprofit sector, there is a historical, and sometimes problematic, expectation from donors that 100% of their money will go directly to the “cause.” As a result, nonprofits have to strictly categorize and defend their “overhead” (management and fundraising costs) in ways that businesses simply do not, leading to a heavy reliance on specialized accounting jargon.

Q: Are nonprofits completely separate from the business and government sectors?

A: Not at all! The most effective social change usually happens when all three sectors overlap. Governments often provide massive grants to nonprofits to execute social services on the ground. Businesses partner with nonprofits through corporate social responsibility (CSR) initiatives or employee matching programs. Nonprofits essentially sit in the middle, leveraging private wealth and government support to create public good.

Truths About Running a Nonprofit That Will Change How You Work The Gap Between Passion and Practice

Truths About Running a Nonprofit That Will Change How You Work The Gap Between Passion and Practice

The Gap Between Passion and Practice

Passion is the fuel of the nonprofit sector. It's the powerful belief in a mission that drives founders, leaders, and volunteers to dedicate themselves to creating change. But passion alone doesn't pay the bills, build a high-functioning board, or secure a game-changing grant. The gap between a powerful mission and a sustainable organization is often filled with the complex, demanding "business" of running a nonprofitโ€”a reality that can challenge even the most dedicated professionals. To bridge this gap, leaders need practical insights that go beyond surface-level advice.


The "Nonprofit Deep Dive" podcast by Nonprofit.Courses was created for this purpose, synthesizing expert knowledge into actionable strategies on finance, governance, and development. This article distills five of the most impactful takeaways from its initial episodesโ€”truths that reframe common challenges into strategic opportunities.

1. Your Budget Isn't Just a Spreadsheetโ€”It's Your Mission's Blueprint

Nonprofit finance is often treated as a compliance requirementโ€”a set of numbers to be reported and filed away. The Nonprofit Deep Dive podcast reframes this entirely, dedicating episodes to establishing budgets as the โ€œblueprint for mission successโ€ and, more specifically, framing โ€œYour Grant Budget Is Your Vision.โ€ This dual focus emphasizes that every financial document, from the organizational level down to a single proposal, is a tangible translation of the organization's strategic plan.

This mindset shift is critical. It transforms budgeting from a dreaded administrative task into a powerful tool for planning and storytelling. When leaders view their budget as the blueprint, it becomes a guide for making strategic decisions, communicating value to funders, and ensuring every dollar is aligned with achieving the mission.

Finance Tools:

  • Aplos: Move beyond spreadsheets with true fund accounting software built specifically for nonprofits.
  • FreshBooks: A user-friendly option for smaller organizations or consultants needing to track expenses and projects clearly.

2. Stop "Fundraising." Start "Development."

The term "fundraising" often conjures a narrow image of simply asking for money. In one of its most urgent directives, the podcast challenges leaders to abandon this limited mindset and immediately adopt the more comprehensive, relationship-focused strategy of "development." This isn't just a change in terminology; it's a fundamental change in approach.

Development encompasses the entire process of building long-term, sustainable support for an organization. It includes cultivating relationships, demonstrating impact, and creating a community of engaged stakeholders who are invested in the mission, not just a single campaign. This approach is critical for long-term financial health, as it moves the organization from a reactive cycle of asking for money to a proactive strategy of building lasting partnerships.

Development Spotlight:

  • Shift your focus from transactions to relationships using Bloomerang. Itโ€™s designed specifically to help you retain donors and build that long-term community.

3. Volunteer Labor Has a Hidden Price Tag

Volunteers are the lifeblood of many nonprofits, but one of the most counter-intuitive truths is that "Volunteer Labor isn't Free." While volunteers donate their time, supporting them effectively requires a significant investment of organizational resources. There are real costs associated with recruitment, screening, training, management, and recognition.

Acknowledging this hidden price tag is essential for realistic operational planning. It forces leaders to budget for a proper volunteer management program, ensuring that volunteers are well-supported, effective, and retained. By accounting for these real costs, an organization can build a stronger, more reliable volunteer corps and more accurately allocate its resources for mission delivery.

Management Tools:

  • Invest in your volunteer workforce with Connecteam. It allows you to schedule, train, and communicate with your non-desk volunteers directly from their phones.

4. An Audit Can Be Your Strategic Superpower

For many nonprofit leaders, the word "audit" brings a sense of dread. It's often viewed as a punitive check-up, focused on finding errors. The podcast flips this narrative, rebranding the audit as a "strategic superpower." This perspective changes the audit process from a compliance burden to a valuable opportunity for organizational improvement.

An audit provides an expert, third-party assessment of an organization's financial processes and internal controls. When viewed strategically, its findings are not criticisms but a roadmap for strengthening financial health, improving efficiency, and critically, building and maintaining public trust. Embracing the audit as a tool empowers leaders to proactively use its insights to make their organization more resilient, transparent, and effective.

Compliance Spotlight:

  • Keep your financial records, board minutes, and audit trails secure and organized with Box. It ensures you're always ready when the auditors call.

5. Winning Grants is a Competitive Sport, Not a Writing Contest

Submitting a well-written grant proposal is important, but it's rarely enough to secure funding in today's crowded landscape. A key insight from the podcast is that winning grants requires a "competitive strategy, not just good writing." Funders are not just reviewing applications; they are making strategic investments in organizations they believe can achieve maximum impact.

This is where the first truthโ€”the budget as a mission blueprintโ€”becomes a competitive weapon. Organizations must strategically position themselves, clearly articulate a compelling and unique vision, and present a budget that demonstrates a clear plan for success. The budget in a grant proposal isn't just a list of costs; it's the financial proof of the strategic vision, demonstrating to funders that the organization has a credible plan to turn their investment into impact.

Grant Resources:

  • Teresa Huff: Learn the competitive strategies that turn proposals into funded projects.
  • Grammarly: While strategy is key, clarity is still king. Ensure your proposal is error-free and easy to read.

Building the Engine for Good

These takeaways share a common theme: building a truly effective nonprofit requires transforming the engine room of the organization. True success is found when budgets become strategic blueprints, audits become assets for building trust, and fundraising evolves into a discipline of strategic development. Passion provides the "why," but this sophisticated infrastructure provides the "how," enabling organizations to scale their good and create lasting change.

Resources like the "Nonprofit Deep Dive" podcast are designed to help leaders build this engine. By moving past common myths and embracing these deeper truths, nonprofit professionals can transform their organizations from well-intentioned to highly effective.

Which of these truths will most radically change how you approach your mission tomorrow?

Find Your Solution

Ready to dig deeper into these topics? Visit the Nonprofit.Courses Focused Search Hub to quickly find the exact training and resources you need to bridge the gap between your passion and your practice.

Nonprofit Board Training: The Ultimate Guide [& Resources]

Estimated reading time: 19 minutes

Key Takeaways

  • Nonprofit boards play a critical role in mission fulfillment, financial oversight, and community representation.
  • Board members must balance responsibilities like policy making, fundraising, and marketing while understanding their organizationโ€™s mission.
  • Nonprofit Board Training is essential for onboarding and continuous education to ensure effective governance and compliance.
  • Key skills for board members include decision-making, organizational skills, and financial literacy.
  • Ongoing training resources like webinars can enhance board members’ skills and effectiveness in their roles.

On Demand Nonprofit Staff Training makes a Major Difference

A lot has been written about nonprofit boards, their role in your organization, and how to recruit and engage them – almost all to the exclusion of one simple but critical fact:

Your nonprofit board is your nonprofit.

You might say that the board is the โ€œalpha and omegaโ€ of a nonprofit. Nonprofits are started by a group of people who form the board. A nonprofit ends its existence with the ascent of the board. In between, the board determines the nonprofitโ€™s mission, hires a nonprofitโ€™s leadership and answers to their community and their state of incorporation for the nonprofitโ€™s performance and more.

Without the board, a nonprofit doesnโ€™t exist, legally, missionally, or programmatically.

In short, being a member of a board doesnโ€™t mean youโ€™re playing around.

Sure, itโ€™s an honor to be on a board. A board member has a โ€œpillar in the communityโ€ status no matter what the cause or size of the nonprofit. And with great honor comes great responsibility.
Board members soon find out that it’s more than the benefits. Itโ€™s work.

A board member may be (should be) on the board because they love the nonprofitโ€™s mission. Yet while a board memberโ€™s work has a great impact on the mission, a board member has little direct contact with the mission. Itโ€™s about finding, spending, and accounting for money. Itโ€™s about facilities and operations. Itโ€™s about promoting the nonprofitโ€™s brand and creating relationships that can lead to mission fulfillment.

And any board member quickly finds out that they canโ€™t know everything about everything their nonprofit does and their role to facilitate it. Thatโ€™s why nonprofit board training is so important. Here’s what we’ll cover in this guide:

Table of contents

What is the role of a nonprofit board?

On a day-to-day basis, the nonprofit board memberโ€™s role is policymaking โ€“ seeing the big picture and serving as the organizationโ€™s fiduciary. In other words, you and your fellow board members have a responsibility to see that the nonprofit is run in a legal and financially suitable manner. A key part of this is ensuring the organization meets all state and federal registration requirements, a topic that services like Harbor Compliance can provide essential training on.

While you can do programmatic functions, especially as a โ€œworking boardโ€ member, youโ€™re really taking on the role of a โ€œregular volunteerโ€ (albeit a very dedicated regular volunteer). In this capacity, youโ€™re not functioning in your role as a board member, although others may think that you are.

So, how does your big picture function work?

It starts with a committee assignment. Every board member should serve on a committee tasked with overseeing a specific aspect of the nonprofit. Your nonprofitโ€™s committees might include the executive committee, finance or budgets, programs, fundraising, marketing, or whatโ€™s arguably the most important committee: governance and board evaluation.

Itโ€™s in the committees that the real work of the board is done. Youโ€™re there to monitor, evaluate, and support the staff and volunteers who carry out the everyday tasks in your area. Sometimes that means giving advice. Sometimes thatโ€™s hearing from outside experts. Sometimes thatโ€™s learning about and approving new ways of getting the job done. Other times it’s simply making sure that the staff and volunteers are doing their jobs in a way that conforms to acceptable practices.

Of course, you need to attend full board meetings. Full board meetings are where you get to see the big picture of your nonprofit and approve or question the functions of the other committees. It is essential that you prepare for your board meetings. That means reading documents or watching videos as theyโ€™re provided. Too many times board members โ€œwing itโ€ and show up without the proper background to make informed decisions. Can you get away with it? A lot of times, yes. But itโ€™s a recipe for disaster when too many people do, or you come unprepared to make a critical decision and are called to account for yourself later (like in a lawsuit.) Am I trying to scare you? Yes. As a very wise man said more than a century ago: Be prepared!

There are two more essential functions youโ€™ll face as a nonprofit board member, regardless of your other roles:

  • Marketing. As a board member, you have a responsibility to, at a minimum, chat up your organization to your friends and community and show support by attending events. It may not be obvious how important this is, but people see you as your nonprofitโ€™s ambassador. Major donors, business owners, government leaders, and other key community stakeholders all closely associate your name with your nonprofit. What you do and say speaks volumes.
  • Fundraising. Proper financing of a nonprofit is one of the top responsibilities of any board. To start, that means you MUST make your own gift to your nonprofit. โ€œI give my time, not my moneyโ€ doesnโ€™t count. It comes down to โ€œIf you donโ€™t give, how can you expect others to do the same?โ€ How much should you give? Your nonprofit may have set minimums. Regardless, at least more than you give to any other organization like the one you serve, if not the most you give to any organization. But it doesnโ€™t stop there. Itโ€™s essential that you support your nonprofitโ€™s fundraising programs โ€“ not necessarily by soliciting, but through activities that either precede or follow a solicitation, (tracked in your CRM) such as calling donors to thank them for their gift, providing networking contacts of friends who may have an interest in your mission, or giving a tour of your facilities.

Knowing your role as a board member is essential to the smooth functioning of your nonprofit. If you get involved in too much minutia, youโ€™ll dishearten the staff and volunteers. They may not feel they can push back, even if youโ€™re doing something incorrectly or wasteful, because youโ€™re a board member. On the other hand, you canโ€™t take a hands-off approach. Itโ€™s your job to know whether things are running right or not.

What skills are needed on a nonprofit board?

A lot, and none.

There are no specific board member qualifications required by the IRS, states, or any other organization. Thatโ€™s one of the great things about nonprofits โ€“ anyone can serve on a nonprofit board, and everyone does. In that regard, nonprofits show the best in democracy.

However, there is one qualification that all board members need: dedication to the nonprofitโ€™s mission. Being a board member will get tough. Youโ€™ll make hard decisions, and there may be days youโ€™ll want to quit. Since itโ€™s not your paycheck job, you might say, โ€œThis isnโ€™t worth it.โ€ Thatโ€™s where dedication comes in. Before you walk away, you need to say to yourself, โ€œCan I look in the eyes of my clients/patients/students and say, โ€˜Iโ€™m outta hereโ€™?โ€ Remember, youโ€™re not serving on the board for you. Youโ€™re doing it for them.

The good news/bad news about nonprofit boards is that while you should be dedicated to your mission, you donโ€™t need to be an expert in it. This is good because you can take an outsiderโ€™s perspective on the work required to meet your mission. Itโ€™s bad because you can frustrate the staff you hire, who are experts, with your constant need for education on best practices. Therefore, it is your responsibility to educate yourself as much about your mission as possible. Youโ€™ll always be a layperson in the mission, but being a well-educated layperson is a major advantage to you and your nonprofit.

As for specific skills? Youโ€™ll need someone who is โ€œaccounting adeptโ€ (not necessarily a CPA, but who can read profit and loss statements and other financial documents and ask intelligent questions). Training should include how to read reports from the nonprofit’s accounting software, which is often a platform like Aplos or FreshBooks. Having at least one mission expert is very helpful so they can professionally evaluate the programming and help educate fellow board members. Some boards like to have a lawyer with them for their expertise (however, note that nonprofit law is a specialty, so your lawyer board member may not have that expertise). If you have facilities, then having a facility expert helps. Youโ€™ll need to look at your functions to see what other expertise can be advantageous.

Here are some othersโ€ฆ

  • Decision-making skills. Your board is a decision-making body. You need cooperative decision-making skills. While some people will naturally take the lead on some issues, you canโ€™t afford to have any autocrats. Remember, youโ€™re all responsible for the board’s decisions. Even if you donโ€™t agree, register your concerns and move ahead with what the board as a whole decides.
  • Organizational skills. The biggest challenge for most nonprofit board members is to organize themselves. Board meeting notes, committee reports, accounting statements, and more can stack up very quickly. Plus, there are activities and events youโ€™ll need to attend. It can be a job on top of a job.
  • Fundraising skills. As noted above, fundraising is a core responsibility. The problem is that too many board members equate fundraising with asking. While asking for support is essential, thereโ€™s a lot more to fundraising than that. Someone needs to identify possible donors, help connect with them, and show them how your nonprofit fulfills its mission. After the solicitation, there are thank yous to make and re-engagement to focus on with the donor for their next gift. If you want to ask, do โ€“ by all means โ€“ but donโ€™t think that if you canโ€™t ask you canโ€™t fundraise. To learn more about fundraising, check out this list of 29 nonprofit resources for doing so.
  • Marketing skills. Again, a core function, but an often misunderstood one. Really what weโ€™re talking about are relationship-nurturing skills that are applied to donors, sponsors, volunteers, and more. People want to feel good about working with your mission. Help them with that.
  • Money management skills. You donโ€™t need to be an accountant, but you do need to understand budgets. Even better, learn how to read balance sheets and reports. Even a basic understanding of these documents will go a long way to help you grasp the financial position of your nonprofit โ€“ and fulfill a major board function.
  • Teamwork skills. As a board member, youโ€™re responsible, but youโ€™re not the boss. Thatโ€™s hard to see when every staff member or volunteer seems to differ in opinion. Think of an upside-down triangle. Thatโ€™s where you and your fellow board members sit in the organizational chart. The staff and volunteers sit in a right-side-up triangle just below yours. The two triangles only intersect at their tips โ€“ the board chair at the tip of your down-facing triangle, and the executive director at the tip of the upward-facing triangle. The board chair is the only boss of the executive director. The executive director is the boss of the staff. When you cross between the triangles to interact with the staff or the executive director, you can cause all sorts of confusion and angst, unless everyone knows there is a specific purpose or assignment that leads you over the boundary, like helping the fundraising staff with their work. Even in that circumstance, your job isnโ€™t to be the boss, itโ€™s to help the function. If you have concerns about staff, take them to the board chair, who will take them to the executive director.

What is nonprofit board training?

No two nonprofit boards run alike, so even if you have served before, youโ€™re going to need training on your new board.

But the truth is that too few nonprofits really train their boards, anyhow. Thatโ€™s more than too bad. That can be a serious liability.

Board training is more than getting to know the new guy over a nice lunch. Board training is an ongoing experience that starts with an orientation to board functionality and mission fulfillment, and eventually digs into your board memberโ€™s legal responsibilities, the board functions mentioned above, and continual updates on mission progress.

Nonprofit Board Training: Onboarding in 3 Steps

Solid nonprofit board training starts with โ€œonboarding.โ€

Itโ€™s important that new board members quickly fit into their role as board members and as valued members of the organization. Just like a paycheck job, it starts with a new board member getting to know their way around โ€“ around the documents, the programs, and yes, even where the bathrooms are near the meeting room.

Letโ€™s dive deeper by looking at the three main steps of onboarding.

1. Bring new board members up to speed on your mission, history, vision, and values.

Number one is to get the new board member focused on your mission. Remember when we said that dedication to the mission is essential? Now they get to see how the mission is fulfilled. If theyโ€™re dedicated, that can be pretty exciting. Even someone who doesnโ€™t expect to work directly with the mission needs to be enthusiastic about it and the importance of their role in supporting it.

Along with seeing what youโ€™re doing today, the new board member needs to see your vision for the future of the mission. As a new insider who can shape that vision, this can be just as exciting as seeing how you carry out your mission today.

We canโ€™t forget about history. Nearly every nonprofit has an exciting origin story with a founder or group of founders who saw a problem and resolved to fix it. Help your new board members see themselves as worthy successors to those founders.

Of course, all of this is within the context of your values. Are your values written down? They should be, and even more important, you should be living them. Donโ€™t expect new board members to โ€œpick up the vibeโ€ of your values. Tell them directly, and hold yourself accountable for following them.

2. Supply new members with important documentation.

Now is the time to share the information that makes your nonprofit tick. Do you have a board binder with all your details, like organizational charts, development plans, and accounting and fundraising reports? Even better, how about an online board portal? Securely sharing these sensitive documents is crucial, and using a dedicated cloud storage platform like Box ensures that bylaws, financial data, and meeting minutes are protected yet accessible. Theyโ€™re an insider now, so board roles and responsibilities/job descriptions, the organizationโ€™s bylaws, financial data, current board membersโ€™ photos and bios, an events calendar, a list of committees, a list of policies, etc. should all be at their fingertips.

3. Host an orientation meeting.

Itโ€™s essential to host an orientation meeting, in person if at all possible. Invite key board members and the executive director. Review current programs and projects, the current strategy and goals for your nonprofit, expectations for board members, and logistical things like when and where board meetings will be and what board members should be doing in between those meetings. This will be a lot of information to take in, so encourage them to take notes, and be available for further clarification. You might even record portions for their review.

Nonprofit Board Training: Ongoing Learning Resources

Beyond onboarding, your nonprofit board should be encouraged to constantly learn and improve. Thatโ€™s where nonprofit board training materials, like the resources aggregated by Nonprofit.Courses, come in. In addition to the specific courses below, board members can benefit from access to broad learning platforms that offer thousands of relevant courses, such as Mind Edge, Coursera Plus and Udemy. Letโ€™s look at five of these ongoing learning resources that can benefit your board.

1. Board Governance Best Practices for Nonprofits

Course Description:

Discover the tools and techniques necessary to lay the foundation of a rock-solid board of directors.

Well-governed nonprofits are more likely to obey tax law, safeguard charitable assets, and serve charitable interests than those with poor or lax governance. Directors bear ultimate responsibility for the charity, and they should be aware of their fiduciary duties. This course will address the basic rules and best practices for boards of directors to follow to assist them in fulfilling their duties. These rules draw upon federal tax laws and state nonprofit laws. Navigating the complexities of the laws becomes more manageable once one becomes acquainted with the policies that assist directors with identifying the markers to keep their organization on track. Directors can then fulfill their duties and be guardians to ensure that the charitable interests are properly served.

2. Nonprofit Committee Magic – How to Improve Board Structure

Webinar Description:

Do you wish your organization used committees better? Are there too many or not enough? Need a better system for committees and the board to communicate with each other? This webinar is for YOU!

Get actionable advice from Dr. Joynicole Martinez, founder and Chief Executive Officer of the Alchemist Agency, on helping your committees and board work better together. The following topics will be covered:

  • What an effective committee structure looks like, and who should be in what positions
  • Tips and tricks for conducting efficient committee meetings and reporting on the results
  • Proven ways to increase results between meetings with better committee practices

3. How To Be An Awesome Nonprofit Board Member

Webinar Description:

Fundraising Culture Changer & Master Storyteller Lori L. Jacobwith joined the Bloomerang team to answer some thought-provoking questions about the board experience, and shared templates and tools to help you support the newest or even the savviest board members and make them feel better equipped to serve.

4. How to Deal with Divisive Board Members

Video Lesson Description:

โ€œHow to Deal with Divisive Board Membersโ€ deals with the inevitable: Someday youโ€™ll recruit one or more dysfunctional board members. They may even try to turn the rest of your board against you. Shalita shares some great tips on how to avoid this from happening and how to deal with these situations should they arise for you!

5. Be a Non-Profit Board That Works

Video Description:

Your non-profit organization canโ€™t afford to have a broken board. Listen to this interview with Professional Registered Parliamentarian Darlene Allen and Roberts Rules Made Simple creator and professional Speaker Susan Leahy. They talk about how to support your non-profit organizations to be more effective. Your meetings are your organization’s best TEAM-building tool. If you can stay mission-focused, youโ€™ll be able to hold more effective and productive meetings.

Wrapping Up

Being on a nonprofit board can be one of lifeโ€™s joys. You not only do good, but youโ€™re leading the way to doing good.

While some people might say that 80 percent of success is showing up, thatโ€™s not true if you want to be an effective nonprofit board member. Thereโ€™s more. Sure, you need to show up at board meetings โ€“ and more than 80 percent. You need to be prepared for those meetings by reading and understanding the materials before you get there. You need to take onboarding, orientation, and ongoing training seriously. You need to become a known advocate for your mission, give to your nonprofit, and encourage others to make their gifts.

But most important is that you need to ask questions โ€“ and understand the answers. You need to know whatโ€™s going on. The public looks to you as the steward of your mission and its money. The people your nonprofit serves deserve nothing less.

Ready to learn more? Check out the additional resources below!

Affiliate disclaimer: This content includes affiliate links. That means when you buy something we’re linked to, Nonprofit.Courses earns a commission, at no extra cost to you. Itโ€™s a win/win. You get some great content, and we keep the lights on!

Frequently Asked Questions

1. What is the fundamental role of a nonprofit board?

The board is essentially the “alpha and omega” of a nonprofit. Legally and missionally, the organization cannot exist without it. The boardโ€™s primary roles include:
Policymaking: Seeing the “big picture” and setting the strategic direction.
Fiduciary Responsibility: Ensuring the organization is run in a legal and financially suitable manner.
Leadership: Hiring and overseeing the nonprofitโ€™s executive leadership.
Accountability: Answering to the community and the state for the organization’s performance.

2. Does a board member need to be an expert in the nonprofit’s specific mission?

No. While dedication to the mission is the most important qualification, board members do not need to be experts in the field (e.g., a doctor on a health board). In fact, an “outsiderโ€™s perspective” can be a major advantage. However, it is a board member’s responsibility to educate themselves enough to be a “well-educated layperson” who can make informed decisions.

3. What specific skills are most valuable on a board?

A well-rounded board typically needs members with the following skills:
Accounting Adeptness: The ability to read profit and loss statements and ask intelligent financial questions.
Decision-Making: Cooperative skills to move forward with the boardโ€™s collective decisions.
Fundraising & Marketing: The ability to nurture relationships and represent the brand.
Teamwork: Understanding the “upside-down triangle” structure where the board supports the mission rather than micromanaging staff.

4. Is financial giving mandatory for board members?

Yes. The guide emphasizes that board members must make a personal financial gift. The philosophy is: “If you donโ€™t give, how can you expect others to do the same?” While time is valuable, it does not replace the requirement for a personal financial contribution, which should ideally be a significant gift relative to one’s other charitable giving.

5. What if I am uncomfortable “asking” people for money?

Fundraising is more than just the “ask.” Board members can support fundraising through:
Identifying and connecting with potential donors.
Giving tours of the facilities.
Calling donors to thank them for their gifts.
Helping with re-engagement strategies for past donors.

6. Where is the “real work” of the board actually done?

Most of the detailed work happens in committees. Common committees include Executive, Finance, Fundraising, Marketing, and Governance. These groups monitor specific areas of the nonprofit and provide oversight, advice, and support to the staff.

7. What is the difference between “Onboarding” and “Ongoing Training”?

Onboarding: A three-step initial process (Mission/History, Documentation, and Orientation) designed to get a new member up to speed quickly.
Ongoing Training: Continuous learning that explores deeper topics like legal responsibilities, board governance best practices, and dealing with divisive members.

8. How should a board member interact with the staff?

Board members should follow a specific chain of command to avoid confusion. The board chair is the only “boss” of the Executive Director, and the Executive Director manages the staff. Board members should generally avoid “crossing the boundary” to give orders to staff unless it is for a specific, assigned purpose (like assisting a fundraising team).

9. What are the three essential steps of successful onboarding?

Mission & Values: Bringing the member up to speed on the organization’s history, vision, and core values.
Documentation: Providing access to a board binder or online portal containing bylaws, financial data, and meeting minutes.
Orientation Meeting: A formal meeting with key board members and the Executive Director to review current projects and expectations.

10. What is the biggest risk for an unprepared board member?

“Winging it” at meetings is a recipe for disaster. If a board member makes a critical decision without proper preparation or background knowledge, they could be held personally accountable or even named in a lawsuit if the organization faces legal trouble.

Preparing Your Board Members for Action at Your Nonprofit

When it comes to joining a nonprofit board, thereโ€™s usually a pretty steep learning curve. Every organization has its own quirks and operational processes, so even if a new board member has previous experience serving other nonprofits, theyโ€™ve never served your nonprofit.

Without guidance and ample training, new board members may struggle through the adjustment period, or worse, they may never find their footing and wind up leaving before the conclusion of their terms.

A new year gives you the opportunity to re-evaluate your board experience and ensure youโ€™re taking every step necessary to set members up for success from the start. Whether your training is formal or more relaxed, it should provide everything new board members need to know to effectively serve your organization.

Comprehensive training sets a positive tone for a memberโ€™s term and enables them to become engaged in their work right away. Not to mention, this contributes significantly to your boardโ€™s professional development as a whole. It ensures everyone is on the same page so that members can collaborate toward achieving goals and making strategic progress rather than slow down organizational growth.

To help you start their terms off on the right foot and encourage continuous development, weโ€™ll review a handful of training best practices that your nonprofit can easily implement, including:

  1. Review board member responsibilities.
  2. Share helpful documentation.
  3. Offer insightful training courses.

Your board members are the true changemakers at your organization. Ready to set them up for successful terms with exceptional training? Letโ€™s dive in!

1. Review board member responsibilities.

You canโ€™t expect board members to live up to expectations if they donโ€™t even know what those expectations are. Starting preparation off on the right foot means thoroughly reviewing responsibilities, both for general board members and for specific leadership roles. Typically, this is done as part of the onboarding process, but you should also review duties on an annual basis with returning members.

According to Boardableโ€™s guide to board member responsibilities, there are several core responsibilities that any nonprofit board member should fulfill. A few common duties include coming prepared to meetings, offering their skills to advance the organizationโ€™s mission, and recruiting standout members. While there are countless others, all responsibilities are typically divided into three categories across many nonprofit boards:

The core duties of nonprofit board members are care, loyalty, and obedience.

  1. Duty of Care: Members should be committed to fulfilling their roles and assisting the organization to the best of their abilities. In other words, they should actively participate, practice open communication, follow through on assignments, and support program initiatives.
  2. Duty of Loyalty: This responsibility means that all activities and decisions should be completed in the best interest of the organization, not the individual board member. Those who exemplify this duty fully embrace your mission.
  3. Duty of Obedience: While board members should do everything in their power to drive the organizationโ€™s mission forward, they still must follow your organizationโ€™s guidelines. These guidelines are found in your governance documents, and a board that strays from these rules can steer your organization in the wrong direction.

While each board member is expected to adhere to these duties, leadership holds a higher level of responsibility. For instance, on top of the core expectations listed above, the chairperson oversees board meetings, helps appoint committee members, and makes high-level strategic decisions with the board that align with the nonprofitโ€™s mission. As another example, the secretary schedules meetings, records and distributes meeting minutes, and assures that all documents are filed and accessible.

In addition to these duties, members will have individual roles that depend on your organizationโ€™s unique needs. By clearly stating whoโ€™s responsible for what, each of your board members can take the steps necessary to lead your organization toward a sustainable future.

2. Share helpful documentation.

As part of the onboarding process, board leadership should provide sufficient resources to catch everyone up on the organizationโ€™s history, processes, and mission. Not to mention, sharing the proper resources can help more experienced members fulfill their tasks as well.ย 

When bringing on new board members, consider putting together a welcome packet complete with helpful documents. Documents are always part of an effective training experience, and a welcome packet will ensure they receive these in an organized fashion that doesnโ€™t overwhelm them.

According to this guide to welcoming new board members, there are several documents you should share during onboarding, including:

These are key elements to include in your welcome packets for nonprofit board members.

  • History one-pager: This covers your organizationโ€™s history and mission in-depth. It provides context and helps them fully understand your work.
  • Roles and responsibilities: This reviews what duties are assigned to which roles. Including this enables members to quickly revisit expectations at any point.
  • Organization bylaws: A copy of your bylaws helps members understand the decision-making hierarchy and what they can (and canโ€™t) do.
  • Financial data: Include financial data such as your annual budget and any recent financial audit results. Knowing where your organization stands financially can inform membersโ€™ decisions and is a crucial responsibility of the board.
  • List of current leadership and board members: This page should include a brief bio, a photo, and contact information for leadership and current board members.
  • A calendar: This lists any upcoming board meetings and events. Sharing this upfront allows members to mark their calendars and adjust their schedules accordingly.
  • A list of committees and their charges: This names each committee and its correlated responsibilities. Be sure to also include committee membersโ€™ names.

Pro tip: A board portal with document sharing capabilities will allow you to consolidate all essential documents into one convenient location. That way, your team doesnโ€™t have to deal with reams of paper that just take up space or keep track of multiple email attachments.

3. Offer insightful training courses.

One of the best parts of nonprofit boards is inclusivity. Anyone can volunteer to serve so long as they have a passion for the cause, but this doesnโ€™t mean these individuals always have the skills to fulfill expectations. To be resilient and effective leaders, board members must invest time in improving their abilities and growing their knowledge of effective governance. Thatโ€™s where training courses come in.

Training coursesโ€”particularly those that are onlineโ€”are a convenient way for new members to get up and running and for veteran members to continue advancing their skills.ย 

As covered in DonorSearchโ€™s virtual training resources guide, virtual training courses were popular long before the shift to working from home due to their many advantages. While in-person training is certainly engaging, it can be extremely inconvenient and inaccessible. Compared to face-to-face training, online courses tend to be low-cost or free, so you donโ€™t have to worry about purchasing physical resources either.

Professionally-developed online courses tend to be high-quality and offer a high level of education and training, which is a vital part of any boardโ€™s development. Making use of these courses can help members become true assets to your mission. Not to mention, offering such opportunities can contribute tremendously to board engagement.

Whether board members need help mastering governance practices or your executive director wants to strengthen teamwork, there are plenty of training opportunities available.

For inspiration, check out this Nonprofit.Courses page that presents specific content aimed at training board members at any nonprofit, from grassroots organizations to international NGOs. These courses are created by professionals in the field, which means you can easily provide an enriching experience with specialized expertise.

Your nonprofit expects so much from its board members. In turn, you need to thoughtfully prepare them for the hard work ahead of them, and that starts the moment they walk into the boardroom for the first time. Investing time and resources into training your board members is a key component of growth.

Whether your board is full of returning members or brand new faces, youโ€™re never past the need for training. By sufficiently preparing these individuals, youโ€™ll empower board members to effectively complete their tasks and overcome any obstacles thrown their way. In turn, theyโ€™ll be well-equipped to serve as committed ambassadors and advocate for your mission for years to come.

This was a guest post contributed by Boardable.This was a guest post contributed by Jebb Banner of Boardable.

Jeb is the founder and CEO of Boardable, a nonprofit board management software provider. He is also the founder of two nonprofits, The Speak Easy and Musical Family Tree, as well as a board member of United Way of Central Indiana and ProAct. Jeb is based in Indianapolis, Indiana.

Bullies in Board Leadership

Bullies in Board Leadership

by Priscilla Rosenwald

Like most groups, a nonprofit Board of Directors is subject to being dominated by an internal bully. We have worked with several boards dominated by bullies, who did not act in the best interests of the organization. Actually, nonprofit Boards are more at risk of bully dominance than other groups, because the only compensation for serving is psychological. For most board members, the psychological reward is the consciousness of doing good in good companyโ€”but for some, satisfaction can only flow from being utterly and completely in charge.

The bully turns a nonprofit Board into a corporation of one, and deprives the chief executive and the nonprofit organization of everyone elseโ€™s expertise and skills.
Does your organization believe in Board entitlement more than you believe in your mission?

Do you allow poison gossip, personal attacks, and relational aggression to take priority over your mission? You may erroneously tolerate the Board bully when:

๏‚ง They need to always be right.

๏‚ง They dominate the conversation.

๏‚ง They may talk over other people.

๏‚ง They get angry and aggressively assert their opinions.

๏‚ง They mock people who donโ€™t agree.

What this means is that you’re sacrificing your mission in order to grant a special personal indulgence to a few people, sometimes only one person, who, in the final touch of irony – no one even likes or respects!

๏‚ง If you have a strong Board culture based on mission discipline, then firing a Board member who is out of alignment is not surprising or shocking. It becomes a matter of fact.

๏‚ง You don’t want a Board that marches in lock step with no one questioning anything. You want a Board that engages in vigorous debate. You want people who will think deeply and who will take the time to work through decisions with care.

๏‚ง Then when the Board makes a decision based on mission, all the members get on the team and go with the plan, rather than sabotaging or sniping or doing anything that drags down the morale and effectiveness of the Board.

The opinions expressed in this blog are those of the author, and not Nonprofit.Courses, HuggDotNet, LLC nor its employees or affiliates. Unless otherwise stated, they are informationalย in nature and equivalentย to advice from a friend, and not professional counsel or advice. You are responsible for any consequences from using any of the information presented. While we make attempts to verify the accuracyย and unique origin of the content, there may be errors, omissions, and mistakes. For more, please see ourย Terms and Conditions.