Community Engagementwilliamblair.com High-Performing Nonprofit BoardsDriving Sustainability and Success Nonprofit organizations continue to be one of society’s most vital resourcesin addressing immediate needs and working towards long-term solutions.They provide essential services that ensure basic human dignity, such as foodbanks, shelter, and outreach programs, health and educational services, and Introduction Today, nonprofit organizations face increased pressure. From rising program costs and greater demand for servicesto uncertainty of revenue resulting from federal funding cuts, the fiduciary and strategic role of a nonprofit board is Below are some of the key challenges confronting nonprofits, followed by what highly effective boards do, drawing onprinciples laid out by the Kellogg School Center for Nonprofit Management at Northwestern University. These key Taken together, these pressures mean nonprofits must make hard choices: how or whether to maintain programs, howto compensate and retain staff, how to plan for future uncertainty, and how to maintain morale and mission integrity inthe face of these headwinds. Nonprofit boards must operate by strong principles to effectively navigate these challenges. 2|HIGH - PERFORMING NONPROFIT BOARDS DRIVING SUSTAINABILIT Y AND SUCCESS1Nonprofit Finance Fund 2025State of the Nonprofit Sector Surveyand Center for Effective PhilanthropyState of Nonprofits 2025 Principles for Highly Effective Nonprofit Boards William Blair collaborated with the Kellogg School Centerfor Nonprofit Management at Northwestern University to 5.Open, Inclusive Dialogue among Board MembersTrust is built when board members listen, communicate, bring diverse networks and perspectives, and engagein healthy dissent when needed. Inclusive boards canbetter understand stakeholder needs, anticipate risk,and avoid groupthink. Creating avenues for engaging 1.Laser Focus on Mission, with Data-DrivenMetrics of Progress Board members must ensure that their organization hasclear metrics, tracks progress, and course corrects whendata shows drift—outcomes, not just outputs. Whenresources are tight and needs grow, mission alignment 6.Ambassadorship and Brand ReputationBoard members are the organization's external voices: to donors, the community, and policymakers. In a timeof polarized politics and competing narratives, boardambassadors who are credible, visible, and vocal about 2.Strategic Focus, “Brains In, Fingers Out”Boards should avoid micromanaging operations. Their job is to set strategy, define long-term priorities, andmonitor execution—not to run day-to-day operations.This frees leadership to respond flexibly to unexpected “ In short, effective boards andboard members ask the criticalfiduciary question, ‘How do wesolve the problem?’ the strategicquestion, ‘How do we improve?’and the generative question, ‘What 3.Oversight of Financial Sustainability, IncludingBudget Approval and Fundraising Engagement Given that many nonprofits are ending the year indeficit, facing shrinking revenues, and needing reserves,boards must rigorously review financials, stress-testassumptions, make plans for multiple revenue streams,and ensure that board members themselves are directlyinvolved in fundraising. 4.Strong Partnership with Executive DirectorThe relationship between the board and the Executive Director must be built on trust, mutual respect, andregular evaluation and feedback. Boards that support, Liz Livinston Howard What Nonprofit Board Members and Executive Directors Should Do Now Boards should consider taking or acceleratingthe following actions: Support leadership and staff well-beingRecognize and plan for burnout by ensuring adequate staffing, compensation, and support. Continuously checkin with the Executive Director for feedback. Be open to Assess the health of the boardAsk: Do we have the right skills around the table (finance, fundraising, strategy, representative of stakeholdercommunities)? Are members fulfilling the expectations of Build trustUphold legal and ethical integrity, foster open and inclusive dialogue, and enhance the organization’s public standing by Strengthen financial oversight and scenario planningUse rolling forecasts, reserve policies, stress-testing under various bad-case scenarios (e.g., further cuts, inflationspike, demand surge). Work closely with the board’sfinancial committee and advisors. Revisit investment In a moment when many nonprofits are balancing missionwith rising needs, the board is one of the big levers that candetermine the difference between merely surviving andthriving. Now is the moment for board members to lean in Click on the links below to learn more Clarify roles and boundaries Reaffirm norms so the board stays strategic rather thanoperational, and so leadership and staff have the autonomy William Blair Philanthropy Strategy Thinking Strategically About Charitable Giving Developing Pathways to Planned Giving and Ele