Are NFP boards keeping pace with changing expectations?

The latest Pro Bono Australia Salary Survey shows that fewer than one quarter of not-for-profit organisations currently pay their board directors. 

Expectations of NFP boards are changing. There is growing emphasis on good governance, accountability and the skills needed to oversee organisations that are often complex and operating in challenging environments. 

The survey also suggests that some directors are devoting significant time to their roles. Board service remains unpaid in most organisations, but the work involved can extend well beyond turning up to scheduled meetings. 

Some organisations cover expenses or provide training, catering and other benefits. Others provide little or nothing beyond the opportunity to contribute. That raises an important question for the sector: if board roles are becoming more demanding, how do organisations show they recognise and value the people doing this work? 

This question becomes even more interesting as the make-up of NFP boards changes. 

Women now make up a significant proportion of board members in not-for-profit organisations, and the latest Salary Survey shows an increase in female-majority boards across the sector. This adds another aspect to the discussion about board remuneration, particularly in a workforce where women continue to earn less than men and questions remain about how women's professional expertise is valued. 

There is no straightforward answer to whether NFP board members should be paid. Many directors are inspired by the organisation's purpose and the communities it serves. Volunteering their time is their way of contributing to that work. 

But relying on goodwill alone may also limit the pool of people able to take on board roles. Not everyone with valuable skills and experience has the capacity to donate their time, regardless of how strongly they support an organisation's cause. 

Professionalising governance therefore raises questions beyond the responsibilities of the board or whether directors should receive a fee. It means thinking about how organisations attract the expertise they need, how they recognise the contribution directors make, and whether their governance arrangements are delivering the best possible outcome for the entire organisation.