Friday, June 27, 2008

Term Limits - Are They Necessary?

When it comes to building a strong board of directors, I am a firm believer in term limits that not only limit the term but also limit the renewal of terms – such as a three-year term with a limit of two consecutive terms. This way, a board member is unable to serve more than six consecutive years without having a “break” from the board.

Opponents believe that this could result in the loss of exceptional board members putting the organization at a disadvantage. However, I feel there are other ways to engage that “exceptional board member” and after a year, if there is a vacant position on the board and the board approves it, that member could rejoin the board of directors.

Change is inevitable – change in our communities, change in people, change in expertise, and change in the way business is conducted. To embrace change, the board composition may need to change as well. Vitality of the board, and therefore the organization, is closely tied to bringing in new people and fresh perspectives, while also having a certain amount of continuity. In other words, the best models include scattered terms so that there is a mix of new and seasoned board members.

A past study, the 2000 BoardSource Standford University survey, indicates 68 percent of nonprofit organizations reported having term limits of three years and two consecutive terms limits of service. Other resources available on the topic of term limits include BoardSource (www.boardsource.org), Board Café (www.compasspoint.org), and Minnesota Council on Nonprofits (www.mncn.org).

Kathy Grochow, NRS, St. Cloud

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