Charities Facing Crisis as Board Seats Go Unfilled

Nonprofit groups are facing a "critical shortage" of qualified candidates to serve on their boards of directors, according to a new study that is based in part on interviews with charity, civic, and corporate leaders from across the country.

Nearly 1.8 million board seats become available each year, fueled in part by a rapid growth in the number of new charities, which adds to a backlog of 1.2 million "standing openings" at nonprofit organizations, according to the study, which was conducted by Booz Allen Hamilton, a management consulting firm.

"The shortage of qualified board members is creating a crisis of senior leadership," said Barry Jaruzelski, a vice president of Booz Allen Hamilton. The study, "Board Recruitment in the Nonprofit Market," was sponsored by the Volunteer Consulting Group, a charity that works to strengthen the governing and management capability of nonprofit boards.

Small and medium-size groups face the greatest "board candidate shortfall," according to the report.

"If you are well known, like the Metropolitan Museum of Art or the Boys & Girls Clubs of America, chances are you don't have a problem finding qualified people to serve on your board," said Brooke Mahoney, executive director of the Volunteer Consulting Group. "But for the majority of nonprofit organizations that lack a well-known brand, board recruiting is a very serious challenge."

Charities frequently fail to identify and reach out to all potential board candidates, the report said, often overlooking "up and coming managers and nonmanagerial technical and functional experts," as well as minorities, and self-employed and retired people.

To help nonprofit organizations and people interested in serving on boards locate one another, the Volunteer Consulting Group has created a Web site, http://www.boardnetUSA.org.

To obtain a free copy of the report's key findings, send an e-mail message to Booz Allen Hamilton at philanthropy@bah.com.