Board members sometimes stand in the way of what their nonprofit needs most. I’ve written before about the meaningless at best and destructive at worst distinction between “overhead” and “program” dollars. Unfortunately, both board members and donors can sometimes overlook the actual costs of a nonprofit's work and its critical need for investment money in the organization.

Fortunately, board members can break this pattern by helping their nonprofit uncover, plan for and fund the staffing, technology, expertise and systems required to make the organization more effective. Board members need to put their weight behind organization building. And they can start by giving their nonprofit these five priceless gifts:

1. Permission to talk about real costs. Don't wear your staff thin by asking them to work with less. Rather than insisting your executive director cut budget on salary, technology, or expert support, consider discussing the true costs of your organization's work and how best to achieve your ambitious goals. Taking a proactive approach on long-term sustainability, will help your organization thrive and make a greater impact.
2. The support of the board. Once you start talking about real costs, you need to marshal the rest of the board to support organization building. Boards are often led by a vocal few who convince the rest to go along with their plans. Be that vocal member who articulates the need for organization building. Clearly convey how it will give greater results over time, and how the board must be the champion of and seed investor in organization building, creating a stronger, healthier nonprofit.
3. A capacity plan. With the board in support of organization building, it’s time to put an organization-building plan in place. Ask the head of your nonprofit to spend some time coming up with a capacity building plan that will take the organization to the next level. Then present that plan at the next board meeting for a substantive conversation about what is truly holding the organization back and what it would take to move forward.
4. An organization building investment. Instead of asking that your annual donation go to your favorite program, be the lead investor in this new capacity building plan. Organization building dollars are very difficult to find. So those closest to the organization should be the first to step up and invest in capacity. Don’t just give the required amount. Make an investment that is significant to you. If you truly believe in this organization, take out your checkbook and make it hurt.
5. Access to more building dollars. Think strategically about who you could encourage to join you in strengthening the capacity of the organization. Then make the case for why a development director, a strategic plan, an evaluation study, or new technology will increase the results your nonprofit is achieving. If board members start making a compelling case to their friends and colleagues about the importance of capacity building dollars, the sector could be transformed.

Board members can be an instrumental driver of stronger, healthier, more effective nonprofit organizations. But in order to get there, board members have to understand and embrace their leadership role in making organization building a reality.


Nell Edgington is President of Social Velocity, a management consulting firm that helps nonprofits create more social change through strategic planning, financing planning, board engagement and management coaching. Prior to Social Velocity, she held management positions throughout the nonprofit sector nationally. She led teams and strategic planning efforts, raised over $5 million annually, recruited and trained top talent and won national awards in nonprofits such as PBS (Public Broadcasting Service) the Oregon Children’s Foundation and the Capital Area Food Bank. She holds an MBA from the Kellogg School at Northwestern University.

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