Many nonprofit news organizations have grown beyond their startup phase, but continue to operate under founding boards, which can be detrimental to the organization. This report examines the current state of nonprofit news boards and offers a roadmap to make the transition to mature, effective governance.
To better understand the current role and future potential of boards in nonprofit news, the Knight Center for the Future of News partnered with the ASU Lodestar Center for Philanthropy and Nonprofit Innovation, the Institute for Nonprofit News (INN) and the Media Information, Data, and Society (MIDaS) Lab at the Walter Cronkite School of Journalism and Mass Communication.
Focused on organizations that have moved or are moving beyond the startup phase, the research included interviews, focus groups, a survey of leaders and board members and an analysis of board composition. We found few organizations have made the transition to mature governance. Among the findings:
To better understand the current role and future potential of boards in nonprofit news, the Knight Center for the Future of News partnered with the ASU Lodestar Center for Philanthropy and Nonprofit Innovation, the Institute for Nonprofit News (INN) and the Media Information, Data, and Society (MIDaS) Lab at the Walter Cronkite School of Journalism and Mass Communication.
Focused on organizations that have moved or are moving beyond the startup phase, the research included interviews, focus groups, a survey of leaders and board members and an analysis of board composition. We found few organizations have made the transition to mature governance. Among the findings:
- About two-thirds of nonprofit news leaders view the board’s role in long-term strategy as highly important, but only about 10% believe their board is effective in doing this.
- About half of the organizations' leaders say they have an extremely effective relationship with their board chair, but only about 15% say the same of other board members.
- Only about 13% of leaders report boards having formal succession plans and only about one-third have discussed their CEO’s performance in the past year.
- Only about one-quarter of organizational leaders reported that their board is very or extremely effective at meeting the organization's fundraising goals.
These gaps are real but also fixable. The following four areas offer a roadmap for meaningful change.
1. Governance Literacy and Clarity of Roles
Effective governance starts with board members having a clear, shared understanding of their role and its boundaries. Without that clarity, boards can become either too deeply involved in day-to-day management or so disengaged that they offer little value. This is especially critical in nonprofit news, where board members must understand that their advisory role does not extend to editorial decisions. Board responsibilities should include:
- Setting the organization's mission, vision and values in collaboration with management.
- Fulfilling fiduciary duties tied to long-term sustainability.
- Overseeing the CEO/executive director, including annual performance reviews and succession planning.
- Ensuring legal and ethical compliance and regularly reviewing key policies and procedures.
2. Board Composition
High-performing boards are intentionally built to incorporate the expertise an organization needs. An annual board matrix assessment helps identify gaps in areas like finance, law, fundraising and human resources, but keep in mind that their expertise should serve in an advisory capacity not to perform those functions for the organization. Best practices:
- Conduct an annual board matrix to assess current strengths and identify gaps.
- Recruit for specific expertise like finance, law, fundraising and human resources.
- Ensure a variety of perspectives are included.
- Apply the "Three T's" when evaluating prospective board members: Time, capacity to engage meaningfully; talent, relevant skills and expertise; and treasure, the ability to give financially or connect the organization to those who can.
3. Financial Oversight and Fundraising
Financial oversight is a fundamental board responsibility, but governing boards go beyond that by partnering with the CEO on long-term sustainability,and actively supporting fundraising. Nonprofit news organizations lag behind the broader nonprofit sector in the area of fundraising, a huge area of opportunity. The board should be:
- Regularly reviewing financials, audits and cash flow.
- Partnering with the CEO to create a long-term financial strategy.
- Establishing clear financial contribution expectations, whether it’s a specific "give/get" amount or a "meaningful contribution" that is discussed annually.
- Serving as community ambassadors, fostering connections and identifying potential major donors.
4. Risk Management
Nonprofit newsrooms face various internal and external threats including:
- Safety and Legal Threats: Journalism organizations face lawsuits, threats to reporter safety, challenges accessing information and cyberattacks.
- Financial and Funding Risks: The sustainability of nonprofit news outlets can be imperiled by reliance on grants, too few donors and lack of diversification.
- Trust and Reputation: Declining public trust in media, including perceptions of bias or misinformation, directly impacts audience engagement and reach and limits growth.
- AI risks: As with many new technologies, AI offers both risks and opportunities. Better understanding those risks can help organizations move forward with integrity.
Boards that are removed from day-to-day operations and bring experience from other sectors are well positioned to help identify, prioritize and monitor those risks. Organizations should implement a risk dashboard prepared by management and reviewed by the board, focusing on mitigation strategies rather than the risks themselves.
Bottom line: The long-term sustainability of nonprofit journalism will not be determined by visionary founders and other nonprofit leaders alone; it will depend on the strength of the boards that govern alongside them. The tools, research and guidance in this report are designed to help nonprofit news organizations build boards that are up for that challenge.