Exploring the Impact of Board Member Financial and Time Contributions on Nonprofit Fiscal Performance

Abstract

We analyzed two samples representing two very different types of nonprofits to explore the under-researched relationship between fiscal performance and board members’ contributions of money and time. The first sample featured survey responses from 72 presidents and board chairs from associates-degree granting colleges. It showed that board members’ time contribution was significantly and positively related to fiscal performance, but that board members’ financial contribution was not, although it exhibited a negative relationship. The second sample was extracted from a database of survey responses from 834 community-based performing arts nonprofits. The analysis found that board members’ time contribution was positively associated with fiscal performance, and that the percentage of overall donations made by board members showed a negative relationship with fiscal performance. These converging results from samples drawn from two different types of nonprofits suggest that board involvement (time contributed) is associated with improved fiscal performance whereas overreliance on boards for funding could undermine nonprofits’ financial sustainability.