Shortcomings in board members’ understanding of their roles and responsibilities are consistently cited as a major challenge for nonprofit organizations. Equally concerning is that research shows many incoming board chairs step into their leadership roles without adequate preparation. Together, these deficiencies create two critical gaps that weaken nonprofit governance.
The fiduciary oversight that underpins effective governance is essential for every association, nonprofit, and chamber of commerce. When governance is not properly exercised, organizations face increased risk—strategic drift, financial missteps, and erosion of trust among stakeholders.
This article is brought to you by Institute for Organization Management, the U.S. Chamber of Commerce’s professional development program for nonprofit executives.
What happens when board members and chairs lack the knowledge and training to execute their governance duties? Predictably, misunderstandings arise, authority boundaries blur, and relationships between staff and volunteer leaders become strained or even fractured. Over time, this dysfunction can undermine mission impact.
Governance is a shared responsibility between staff and board members. Staff should not assume new board members arrive fully prepared, nor that new chairs instinctively know how to lead effectively. Instead, staff must take a proactive role in closing knowledge and training gaps.
Experienced board members also have a responsibility to mentor and support new colleagues. Intentional development of board leadership should be embedded within succession planning. Strong boards don’t happen by accident—they are built.
Set clear expectations during recruitment, reinforce them through a structured orientation, and sustain them with ongoing education. These steps transform governance from a liability into a strategic asset.
Closing these two gaps is not optional—it is essential. Organizations that invest in informed, prepared board members and chairs position themselves for stronger leadership, healthier relationships, and greater mission impact.
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