Corporation or foundations must have a board of directors or advisory council. As a legal entity, the corporate body must have at least two (3 or more in most states) board members who share responsibility for making decisions about how the business will be run. Sometimes this decision-making is accomplished by voting, and sometimes by consensus.
Generally, people who share a passion for the mission of the NPO will make the best board members. It is important to find board members who are qualified, trustworthy, and easy to work with. In fact, many start-ups begin with a group of friends or associates as the board members.
The Council on Foundations (2006) recommends assessing the size and composition of an NPO board based upon a few guiding factors while, of course, keeping current state law firmly in mind. These factors include:
- Type of foundation and the nature of the board’s work
- Asset size
- Donor’s original intent
- Board structure
- Lifecycle of the NPO
- Requirements for fund-raising
- Diversity requirements
