How Important is a Board of Directors to Attracting Grant Funding?

Nonprofit organizations do well to tend to the business of building a strong and functional board of directors. Traditionally, nonprofits have needed that board of directors to set policy, hire executive staff and tend to the business of fund raising and keeping the doors of the organization or agency open. What can be overlooked, however, is the role that a board of directors plays in attracting and securing important grant funding.

Even small organizations can do well to put some care and thought into who is invited to be on the board of directors. Of course, you want individuals who have passion and commitment to the organization first and foremost, but you also need skill sets and connections to further the mission of the organization. When it comes to attracting funding from private and public foundations and other grantmakers, the board of directors DOES have a role to play. It may depend on the funder, but the board make-up is important.

Many grant proposals will ask to see a roster of the board of directors' members, including affiliations and biographical information. While a strong board does not necessarily mean that everyone needs to be high profile, what is important is that the board seems appropriate for the governance of the organization. The type of organization should, to a degree, dictate the type of board. For example, a small organization working on health care issues should have a board of directors that reflects its mission'"leaders and policy-makers in the health care and community health sectors. If the organization is small, the board may need to reflect professionals and specialists that can take over where staff cannot (for example, an attorney or accountant to help with the legal and fiscal side of things.)

Board stability is important to funders, as is the overall stability of the organization or agency. A board with some diversity in terms of gender, race, age, etc., as well as board member terms that will keep the board from suffering a complete turnover or upheaval at any one time will be considered as well. It is not unusual for a foundation to contact the board representative to get additional insight or ask to meet board members during a site visit. Since the board of directors is the ultimate responsible fiscal agent for the nonprofit organization, it would make sense that they would be a consideration for a financial "investment" of grant funding.