Nonprofit Board Performance: Board Members' Understanding Their Roles and Responsibilities

Abstract

Using survey data from nonprofit CEOs and Board Chairs thi s paper presents a new concept for measuring NPO effectiveness by examining the impact of certain roles and responsibilities, specifically internal board performance (practices that take place within the board room) on external performance (practices that take place outside of the board room). Data from the BoardSource Nonprofit Governance Index Survey provides information on twelve board practices. Path analysis was used to investigate the impact of internal board practices on external action. Regression analyses demonstrate how internal board functioning impacts the organization's ability to fundraise, improve community relations and outreach, and recruit new board members. Results indicate the strongest impact on the external board performance is from board members' understanding their roles and responsibilities.