Nonprofit Board Leadership: An Essential Ingredient for High-Impact Nonprofits

Abstract

Over the course of the past 20 years, nonprofit organizations in Philadelphia have confronted significant changes in their operating environment. Corporate mergers and acquisitions, the globalization of the economy, the devolution of federal power to state and local governments, constant challenges in government budgets, and changing philanthropic patterns and priorities have all rocked the sector. In the near term, unprecedented financial challenges, brought on by the current financial and economic crisis, will have enormous consequences for nonprofit organizations in the region and across the country.

Against this difficult backdrop, a serious governance challenge looms: many nonprofits in Philadelphia (and elsewhere) struggle to attract, retain and nurture strong board leadership and board chairs. Ominously, many major nonprofit organizations in the region will also face significant executive transitions in the next decade as their long-time chief executives (sometimes their founders) prepare to retire. The parallel crises of a difficult fundraising environment and the prospect of impending executive succession will severely test the mettle of most nonprofit organizations in the region.