Nonprofit Board Member Term Limits: How Long is Too Long?

In the course of our work here at Foundation Group, we get lots of questions from clients and prospective clients every day. What we find is that all those questions generally follow patterns. That’s another way of saying we get a lot of the same questions over and over. And one of the questions we field all the time is the question about board service. How long should someone serve on a nonprofit board of directors? That’s our topic of the day, so let’s get into it.
✏️ BOARD SOURCE:
•BLOG ARTICLE: Term Limits: boardsource.org/resources/ter...
📚 ADDITIONAL RESOURCES:
•VIDEO: Nonprofit Bylaws - The Dos and Don'ts • Nonprofit Bylaws - The...
•VIDEO: Issues with Nonprofit Board Members - What to do About ROGUE Board Members • Q&A #3: Issues with No...
•VIDEO: Sole Member Nonprofit: BEST Way To Protect The Founder? • Sole Member Nonprofit:...
•BLOG ARTICLE: Nonprofit Board of Directors Term Length: How Long is Too Long? bit.ly/3ro8S9h
🏆 YOUR NEXT STEP:
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0:00 Introduction
1:12 No Fixed Limits at the Federal Level
1:39 Best Practices
2:39 Pros of Term Limits
4:11 Cons of Term Limits
5:03 Other Considerations - Churches
5:49 Other Considerations - Micro Charities
6:59 Conclusion

[@FoundationGroup]

If you need help filing for IRS 501(c)(3) status, we’d love to help. Fill out the form at bit.ly/3i6rFxz or give us a call at 888-361-9445.

[@larry-kp9sp]

It definitely depends on the situation. Ours are lifetime appointments. Term limits weakens the board....

[@giselgonzalez8920]

Hi Greg, can you please make a video about foundation grants given to foreign countries that do not have a U.S. arm? Specifically the equivalency determination and expenditure responsibility process and how to start those :)

[@FoundationGroup]

We'll definitely consider that.

[@waynecmontgomery]

Hey Greg, Great video, however, you failed to speak about age limits. When are you too old to serve? ( I.E. Think Sen. Diane Feinstein and Former Justice Ruth Badder Ginsburg)

[@CalGreenCompliance]

We think you are trying to be funny, but what you described is age discrimination.

[@waynecmontgomery]

@@CalGreenCompliance Not when it comes to the board of directors in European countries and here in the U.S. it is common to set an age limit for members of the board at Lockheed Martin it is age 70. I can tell you that because I am a former 20-year-plus attorney who has worked in many board rooms. Age discrimination is only applicable to employment positions. Your board of directors are NOT employees.

[@gregmcray]

Good point. Even in those situations where a mostly perpetual board seat makes some sense, there often reaches a point where too long is defined by no longer being mentally competent. And that age is vastly different person to person. My Dad is going on 83, but he looks and acts like he's 63. And, he sits on the boards of at least 2 nonprofits, still able to fully contribute. On the other hand, your examples (plus a certain octogenarian occupying 1600 Pennsylvania Avenue and Mitch McConnell) clearly were and are politicians who are shells of their former selves. It's not age discrimination at all to set a reasonable service limit on board service.

[@waynecmontgomery]

@@gregmcray Hey Greg, great follow-up and great points. Also, most for-profit Fortune 500 corporate boards in America set age limits.

[@gregmcray]

@@waynecmontgomery Yes, they do.