Africa: Should Private Sector Executives Sit On the Boards of Non-Profits? There Are Risks and Benefits

Serving on a non-profit board can be deeply fulfilling and beneficial to the cause - but only if you're fully committed and prepared for the role.

It must be flattering to be offered a seat on the board of a non-profit organisation (NPO). After all, the non-profit sector has long valued for-profit executives for their business acumen, result-orientation and decision-making abilities.

Along with their expertise in areas such as finance, legal, human resources, marketing and management, the ability of for-profit executives to translate broad strategic goals into actionable decisions can help non-profit boards navigate complexity and ambiguity with greater confidence. They also often bring extensive networks that can open doors - be it for partnerships, fundraising or advocacy - which can significantly enhance an NPO's ability to achieve its mission.

The appeal to serve on the board of an NPO may be an emotional one: service and meaning. As a bridge between the government, society and the business sector, NPOs play a vital role in addressing market and government failures. They advocate for accountability, counterbalance profit-driven motives, mediate between stakeholders, complement government services and even foster social innovation.

At the same time, non-profits have reached a transformation moment. As public donations shrink - a trend now accelerating with recent shifts in aid policies by the United States and Europe - non-profits must take a proactive approach by refining their priorities, strengthening operational resilience and preparing for future shocks.

But to achieve these, NPOs need strong leadership and effective governance. This is where the board comes in.

In an ideal world, the relationship can be mutually beneficial. But executives without prior board experience may struggle to transition from an "action-oriented" mindset to one of board oversight and, as a result, sometimes slip into micromanagement and undermine the delineation of roles between governance and management. Also, there is the question of fit.

Before embarking on the journey as a non-profit board member, it is critical for both the executive and NPO to assess their readiness and alignment. We've developed a set of questions to consider, drawing from our work in this field, as well as the insights gained from non-profit board members, executives, governance practitioners and academic experts whom we meet at Governance and Leadership Community of Practice meetings we've been organising regularly.

Assessing your motivation, capacity and commitment

Do I share a genuine passion for the non-profit's mission and values? Would I feel fulfilled contributing to this cause, even if it didn't yield professional benefits?

Do I have the time and energy to commit to this role? Am I truly prepared to attend meetings, participate in committees and provide support beyond the boardroom when required?

Can I balance this commitment with my professional and personal responsibilities? What impact might this role have on my other obligations? Can I really commit to the task, especially when it requires additional commitment in times of crisis?

Am I honest to myself and the organisation about my real motivation? Is it to give back, support a cause I'm passionate about, expand my network, for professional development, or a mix?

Evaluating your expertise

Can my skills and experience contribute to the non-profit's success? Are there specific areas, such as strategy, fundraising or financial oversight, where I can add value?

Do I have a full appreciation of the specific complexities and challenges of non-profit governance? Am I prepared to navigate the differences between for-profit and non-profit operations, such as stakeholder dynamics, funding models and mission-driven objectives?

Understanding the role

Am I clear about the expectations and responsibilities of a board member in this organisation? Have I reviewed the organisation's bylaws, financial status and strategic priorities to understand the role fully?

Do I understand (or am I willing to learn) the oversight role of a trustee or director? Can I maintain a strategic, supervisory perspective without micromanaging the management team?

Am I comfortable asking tough questions and holding the organisation accountable? Will I speak up when necessary to ensure transparency, ethical behaviour and good governance?

How can I align my expectations with the non-profit's operating realities? Non-profits often lack the resources and support that for-profit organisations possess. Faced with a different operational reality, it can be challenging to understand whether what is being delivered is all that can be expected or if there is room to push for more.

Evaluating risks

Am I prepared to associate my personal reputation with this NPO? Have I researched the NPO's reputation, leadership, financial health, bylaws and legal compliance, and am I willing to accept any potential risks that could impact my professional ambition?

Are there potential conflicts of interest? Could my professional role or personal interests lead to ethical challenges or perceived biases?

Am I prepared to use my network repeatedly? Engaging your network can be one of the most powerful ways to support a non-profit, whether for fundraising, partnerships or advocacy. However, you should consider whether you're ready to tap your network repeatedly as the organisation's needs arise.

Committing to learn and engage

Am I open to learning and adapting to the non-profit sector? Am I willing to invest time in understanding the mission, community and operational nuances of the non-profit world?

Can I work collaboratively with diverse stakeholders? Am I prepared to engage with and learn from individuals from varying professional, cultural and socioeconomic backgrounds?

Put mission at the core

Serving on a non-profit board can be rewarding, both personally and professionally. However, this role requires more than experience - it also demands knowledge of the NPO sector, self-awareness, intentionality and a genuine commitment to the organisation's mission. A for-profit executive's skills and experience can help shape the strategic direction and success, but only if approached with the focus, time and humility the role demands.

For non-profits, the inclusion of for-profit executives brings valuable expertise, networks and decision-making capabilities that can elevate their professionalism and impact. Yet, non-profits should not overestimate their added value and must ensure their boards are balanced, with diverse skills and perspectives that complement the organisation's needs.

A final reflection for the passionate executive: If you truly care about the mission, periodically ask yourself (as well as your fellow board members and management): "Am I the best fit to help advance it?" Reflect on whether you are bringing your fullest value or if stepping aside might better serve the organisation and its purpose.

Ultimately, by prioritising the mission, both non-profits and for-profit executives can forge partnerships that build stronger, more effective organisations that drive meaningful and lasting change. Keeping the mission at the core ensures every decision contributes to lasting impact.

Ron Soonieus, Director in Residence, INSEAD

Agota Szabo, Senior Researcher & Lecturer, Leiden University

Caelesta Braun, Professor Public Governance and Civil Society, Leiden University

This article is republished from The Conversation Africa under a Creative Commons license. Read the original article.

Africa: Should Private Sector Executives Sit On the Boards of Non-Profits? There Are Risks and Benefits

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