There are only a few things that can get a select group of nonprofit leaders riled up, one being the topic of term limits. However, we have heard of numerous reasons why they are not necessary, including:
- Loss of institutional memory, expertise, and/ or a major financial resource
- Scarcity of suitable board members to replace those with limited terms
- Opportunity cost (i.e., the time and effort needed to continually recruit new members)
Thus, we do not believe these reason outweigh the benefits of implementing term limits.
What are the benefits of term limits?
Term limits are intended to:
- Keep the board representative of the community and its members
- Hold the board representative responsible for his/her actions regarding the community
- Help the board representative implement appropriate new strategies to meet the mission of the nonprofit
- Maintain focus and awareness on what is best for the organization
There are a number of reasons why term limits should be implemented in a nonprofit organization. The following are the primary reasons for why we are in support of term limits:
Ensures Needs Are Met
Term limits require board members to regularly assess the skills, abilities and networking connections needed to advance the organization’s mission in terms of recruiting new members and finding potential candidates. Recruiting board members to meet the organization’s needs requires communication with leaders and decision makers of the community. The representatives are encouraged to make changes during a limited term and thus the focus is on what the organization does, why the nonprofit is important, and how the new board member can make a difference in his/her limited term. Evidently, term limits are also useful for meeting outreach and networking goals.
Expands Constituency and Openness
New board members bring representation of new constituent groups to the board, for example, different age or ethnic groups, emerging stakeholders, or local community leaders. By making room for new members, your constituents and community is able to see that your organization is seeking new ideas and different types of leadership. As can be seen, we encourage our clients to work towards getting people in the community competing to be on their boards! The goal is to engage anyone who has the qualities to be a board member.
Broadens Thinking
New board members bring fresh ideas to the board, or they can give a new twist on an old trick that may not have worked well in the past. An example would be experience with new evidence-based best practices or new ways to connect with businesses or workplaces that might support the organization’s mission.
Prevents Conflicts for Power
Recently, I ran into a nonprofit organization that had been around for over 20 years, but term limits had never been implemented. As a result, a number of individuals had been on the board since the organization was first established. These “old timers” (for lack of better terms) managed the organization, while newly-recruited members were limited in terms of what could be contributed. Needless to say, the organization had become stagnant and inflexible, and as a result it had lost ground year after year. Moreover, the newest members had become frustrated because they were unable to contribute to the organization in any meaningful way.
How can term limits be implemented?
You can easily incorporate term limits into your board by taking these two simple steps:
1. Add term limits to your bylaws.
2. Include specific terms in your “Expectations of Board Members” upon recruiting a new member.
Consider Your Bylaws
The bylaws should state the term limits for each board member. I find that a three-year term (renewable for a single, second three-year term) is a good length of time for individuals to serve on a board. If the term is less than three years, a board member has the time to only get used to taking part on the board. On the contrary, more than three years for a term can cause an individual to feel as though the commitment is daunting and too long. More importantly, a long term can discourage new board candidates from agreeing to join.
Modify Your Expectations of Board Members
When recruiting new members, using a one-page summary of your expectations helps to clarify the commitment that potential members are being asked to make. Thus, you can explain the time commitment, the location and times of meetings, etc. This way, it is clear that there are obligations, such as the expectation of an annual financial contribution or the expectation of fulfilling the needs of one term.
What should you remember about term limits?
There are numerous other reasons in support of term limits, but we believe those mentioned in this article are the most important. For example, we found some organizations implement term limits to thin out “deadwood” or inactive members on the board; however, we do not agree with this objective. In our last article, we discussed how and why it may be necessary to remove board members, and in fact term limits are effective in the removal of an individual. Furthermore, a non-active board member who stays on your board for two or three consecutive terms until he/she fulfills his term is not fair or useful for the board; as a result, a term limit will allow your organization to filter these individuals out of the group as soon as the one term is respected. In some cases, conditions may need to be put in place in order to remove a member who is mid-term and not effectively contributing to the team.
Remember the importance of term limits!
Term limits are critical to a board’s health because they prevent a single individual or group from monopolizing the spirit of the organization. Not to mention, they ensure that new ideas and approaches will be explored as new members bring new perspectives, which are essential to the success of any organization. Although everyone is forced off the board at some point or another, it is better to have board terms in order to structure the term of each member. Thus, I recommend you start thinking about them sooner than later.
In closing, one useful result of changing board members is that there are more members in the community who will have gained experience and learned about your organization. This can mean excellent word-of-mouth which can result in more visibility and awareness in the community regarding your nonprofit and your fundraising projects.
Ron J. Huddleston, CFRE, FAHP
President
The Huddleston Group
