Hope everyone is getting ready for a fun and prosperous summer. This will be The Huddleston’s Group final newsletter blog until September and we think it is a good one to end on. We have recently come across a couple of our clients that have been in existence for many years – yet they have board members that have been involved with the organization, in some cases, for more than 30 years. The consequences of that are numerous, both organizations fundraising has been stalled for years, they rely on the same special events year in and year out and there are no new ideas or goals to take these organizations to the next level. This month’s blog will discuss the importance of why board term limits are necessary for the success of your organization.
Term Limits – Critical to Your Nonprofit Board’s Success
Few things get a select group of nonprofit leaders riled up as the topic of term limits. We have heard numerous reason why they are not necessary such as:
- Loss of institutional memory, expertise, and/ or a major financial supporter
- Scarcity of suitable board members to replace term limited members
- Opportunity cost (i.e., the time and effort needed to continually recruiting new members could be spent on other, better things)
Our thoughts are quite basic – we do not believe those reason outweigh the benefits of term limits. Term limits are intended to keep the board representative of and responsive to its community, aware of and implementing appropriate new strategies to meet the mission, and focused on what is best for the organization. There are a number of reasons to implement term limits in nonprofit organizations our primary reason are the following:
Term Limits Help Prevent Power Grabs
Recently, I ran into a nonprofit organization that had been around for over 40 years – but they had never implemented term limits for their board. As a result, a few people had been on the board since the organization was started. These “old timers” ran the organization and newly-recruited members were not able to contribute much of anything new. Needless to say, the organization was stagnant and inflexible and had lost ground year after year. The newer members were frustrated because they were unable to contribute to the organization in any meaningful way.
Term Limits Ensure Needed Skills
Term limits require board members to regularly assess what skills, abilities, networking connections, etc., are needed to advance the organization’s mission and to routinely look for potential candidates to meet those needs. Recruiting board members to meet the organization’s needs requires communication with the community leaders and decision makers what the organization does, why it is important and how they, the new board member, can make a difference – it is a great outreach and networking tool!
Term Limits Expand 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 members. Making room for new members demonstrates to your constituents and community that your organization want new ideas and leadership. We encourage our clients to work towards getting people in the community competing to be on their board!
Term Limits Broaden Thinking
New board members bring fresh ideas to the board or to old ideas that did not work in the past, but whose time has come. 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 work.
You can easily incorporate them into your board by taking these three simple steps:
- Add term limits to your bylaws.
- Include specific terms in your “Expectations of Board Members” when you recruit.
Add Term Limits To Your Bylaws
The bylaws should state the term limits for each board member. I find that a 3-year term (renewable for a single, second 3-year term) is a good length of time for people to serve on a board. Less than three years and a board member is just getting started when it’s time to leave. More than 3 years and the commitment seems daunting and can discourage new board candidates from agreeing to join.
Include term limits in your Expectations of Board Members
When recruiting new members, using a one-page summary of your expectations helps clarify the commitment that potential members are being asked to make. You can explain the time commitment, when and where the meetings are held, that there is an expectation of an annual financial contribution, and the term limits for joining members.
There are numerous other reasons for term limits but the ones outlined above we believe are the primary. We found some organizations primarily use term limits to thin out deadwood on the board – we do not concur with that philosophy. In our last article we discussed how and why it may be necessary to remove board members – term limits in our opinion is not an effective method. Having a nonproductive board member stay on your board for 2 or 3 consecutive terms until they term out is not fair to the other board members and your organization.
Term limits are critical to a board’s health because they prevent a single individual or group from monopolizing the spirit of the organization. They ensure that new ideas and approaches are explored – something that’s essential to the success of every organization. Everyone is forced off the board eventually. If your board doesn’t have term limits, I recommend you start thinking about them now.
In closing one of the great byproducts of term limits is your nonprofit’s representation in your community increases as the population of past board members grows – that is definitely good for visibility, knowledge of your nonprofit and no doubt fundraising! Remember you do not have to be a board member to contribute positively to the organization.
Ron J. Huddleston, CFRE, FAHP
President
The Huddleston Group
