Three Reasons to Include Beneficiaries in Your Nonprofit’s Board

I came across a couple of statistics that stopped me in my tracks this week.

According to BoardSource’s most recent Leading with Intent study (a survey of more than 800 public charity CEOs and board chairs), only a third of boards (32 percent) place a high priority on “knowledge of the community served,” and even fewer (28 percent) place a high priority on “membership within the community served.”  Put another way, less than 3 in 10 nonprofits are making a significant effort to include their beneficiaries on their governing boards.

Maybe I shouldn’t be surprised. 

After all, I know that the dominant power dynamic in nonprofit boards is still one that prioritizes the ability to fundraise above all else. Sure, a (current or former) beneficiary of your nonprofit’s programs might not be able to contribute financially to your organization at the same level as, say, the CEO of your local bank. But are we really still looking at the value of a board member’s contribution as one that can only be measured in dollars and cents? As a sector, we’ve got to do better.

I know I’m preaching to the choir here, as so many of our readers are nonprofit CEOs and executive leaders who are very much aligned with the Shared Power PhilosophyTM.

But I’m going to guess you might need a little help making the case for beneficiary representation on your nonprofit’s board, or we wouldn’t be seeing such abysmal statistics as those reported by BoardSource’s latest study.

So indulge me for a moment. Here are three of the biggest reasons to include your beneficiaries in your nonprofit’s board (there are many more). Share them with your existing board, and push for a change like the livelihood of your organization depends on it.

1. Beneficiaries Have the Lived Experience to Inform How You Pursue Your Mission

This seems painfully obvious, but if that were actually the case, we probably wouldn’t have so many nonprofits governed by individuals who have never lived through the challenges their organizations aim to address. Unlike professionals and philanthropists, who may approach issues from a theoretical standpoint or with a purely business mindset, beneficiaries are grounded in reality. Beneficiaries bring an authentic understanding of the challenges, needs, and aspirations of the community your nonprofit serves because they are part of that community. Their firsthand experiences provide invaluable insights into the effectiveness of programs, the relevance of services, and the impact of policies.

Consider a nonprofit organization dedicated to addressing housing insecurity. While well-intentioned professionals who tend to end up on boards may devise strategies based on research and best practices, most lack the nuanced understanding that comes from experiencing housing challenges firsthand. By inviting individuals who have overcome homelessness or have been directly impacted by housing instability to join the board, the organization gains access to a wealth of knowledge that can inform its approach in more meaningful ways.

Beneficiaries offer perspectives that challenge assumptions, highlight blind spots, and ensure that the organization remains rooted in the realities of those it serves.

2. Beneficiaries Are Uniquely Positioned to Connect to the Communities You Serve (Because They’re Part of Those Communities)

In Leading With Intent, almost half (49%) of all chief executives said that they did not have the right board members to “establish trust with the communities they serve.” 

This is a huge problem, but who better to solve it than the members of the communities themselves?

Establishing genuine connections can be challenging, particularly when there is a disconnect between those making decisions and those directly impacted by them.

By including beneficiaries on the board, nonprofits bridge this gap and cultivate authentic relationships with the communities they serve. Beneficiaries serve as ambassadors, relaying the concerns, aspirations, and feedback of the community directly to the boardroom. Their presence ensures that decision-making processes are grounded in community voices and responsive to community needs.

Furthermore, beneficiaries bring a level of credibility and authenticity that can resonate deeply with community members. When individuals see people who share their experiences and understand their circumstances in positions of leadership, it fosters a sense of belonging and ownership within the community. This sense of representation not only strengthens the organization’s ties to the community but also empowers individuals to actively participate in shaping their own futures.

3. Beneficiaries and Other Board Members Learn from One Another Best When They Both Have a Seat at the Same Table

Inclusion is not just about representation; it is about creating spaces where diverse perspectives can thrive and mutual learning can occur. When beneficiaries and other board members come together around the same table, it creates a dynamic environment where insights are shared, assumptions are challenged, and collective wisdom emerges.

Beneficiaries bring a wealth of knowledge that extends beyond their personal experiences. They offer unique insights into community dynamics, cultural nuances, and grassroots solutions that may elude traditional board members. By engaging in dialogue with beneficiaries who sit side by side with them on the board, other board members gain a deeper understanding of the complex issues at hand and are better equipped to make informed decisions that resonate with the community.

Conversely, beneficiaries can benefit from exposure to the expertise, networks, and resources that other board members bring to the table. They can gain insights into governance practices, strategic planning, and organizational management through which they can empower themselves to become more effective advocates and leaders within their communities.

In this symbiotic relationship, both beneficiaries and other board members expand their perspectives, challenge assumptions, and cultivate empathy and understanding, which ultimately leads to more effective organizations.

Involving beneficiaries on your nonprofit’s board is not just a matter of token representation; it is a strategic imperative that enriches governance, enhances community engagement, and strengthens organizational impact.