Terms and Term Limits
An organization’s bylaws set both terms and term limits. Terms are the length of service prescribed for the position of a board member, which may be renewable indefinitely or term-limited. Term limits are a restriction on the number of consecutive terms that a person can serve as a board member.
Nonprofit boards have been debating the pros and cons of term limits for many years. If your board has not embraced term limits (and we recommend you do), perhaps your organization could benefit from your board revisiting the topic. According to the most recent Leading with Intent, 95 percent of nonprofit boards reported having board terms, with 54 percent having term limits. The most common board member term structure is two consecutive three-year terms.
The Pros of Term Limits
- Provide opportunity for the board and organization to work with talented community members who can devote only a few years to board service
- Lay the path to embrace Purpose-Driven Board Leadership, which brings new ideas and new perspectives to the board and equity to its decision-making
- Enable you to avoid stagnation, tiredness, boredom, and loss of commitment that can sometimes set in when board members serve long-terms
- Avoid the perpetual concentration of power within a small group of people and the intimidation of new members by this dominant group
- Provide a built-in balance of continuity and turnover, when staggered
- Allow for rotation of committee assignments
- Raise awareness of and provide opportunities to change and improve group dynamics
- Provide a respectful and efficient mechanism for the exit of passive, ineffective, or troublesome board members
- Enlarge your circle of committed supporters as members rotate off the board
- Enable the board to easily adjust its membership to reflect the organization’s changing needs
The Cons of Term Limits
- Potential loss of expertise or insight that has benefited the board and organization over time
- Potential loss of organizational/institutional memory
- Requires the governance committee to dedicate more time to the identification, recruitment, and orientation of new board members
- Need to dedicate additional time to building the cohesiveness of the board as members rotate on and off the board
What are staggered terms?
A staggered term system allows a certain number of new members to be chosen each year, preventing no more than one half (preferably one third) of the terms from expiring at the same time.
Should board chairs and other officers have term limits?
Board chairs play a critical role in board leadership and development, devoting considerable time to the organization and exerting considerable influence over the board. Term limits help prevent board chairs from burning out by shortening the duration of their commitment. Term limits help protect the board and chief executive from an ineffective chair and also enable the board to adjust its leadership to suit changing organizational needs. Recruiting board members with leadership capabilities and developing them for officer positions is critical for board revitalization.
How can the Governance Committee prepare for board member transitions?
- By being prepared, in advance, with a fresh list of new candidates.
- Conducting exit interviews. These are excellent occasions for the governance committee to get feedback from retiring board members.
- Create guidelines for emeritus status for truly outstanding board members.
- Be inventive in finding other ways to keep productive members involved in the organization (task force and/or advisory council assignments, fundraising activities, volunteer activities)
- Consider allowing outstanding members to rejoin the board after taking a sabbatical year after their last term
How do the bylaws support board development?
An organization’s bylaws are a great place to start planning for board development.
- How many board members should we have? Are they appointed only at the annual meeting, or can they be appointed as needed?
- What are the terms? Are there term limits?
- What committees do we have? How are committee chairs appointed?
- What are the officers’ terms?
Once you know the answers, you can begin to build the board to meet the needs of your organization today and in the future.
Please see the Board Recruitment Center for more information.