The start of a new year is time for boards to reflect on the past 12 months. It’s also the time for boards to ensure they’re prepared to be as effective as possible for the organizations they serve.
Preparing for the year ahead isn’t exactly easy. The world of business is evolving at breakneck speed, and many directors struggle to keep pace. Yet, they must keep pace if they expect to have a positive impact on the board.
So, how can you be sure your board is ready for the year ahead?
At a recent ATLAS Leadership Series webinar, Dr. Emilie Socash, Founder and CEO, Nonprofit Help Center; and Stuart R. Levine, Charman and CEO, Stuart Levine & Associates, led a discussion on what boards need to know to be prepared for 2025. They explored the importance of:
- Enhancing your board’s data flow and security
- Gaining a clearer understanding of how to manage AI and use it to your benefit
- Understanding the importance of positive dynamics within the board for it to function effectively
In this post, we share some of the key takeaways from this timely session.
Several Trends Will Shape Governance in 2025
Board directors play an important role in the success of the organizations they serve. But directors must face (and overcome) a whole host of emerging trends and challenges.
According to the 2025 NACD Trends and Priorities Survey, some of the trends that are top of mind for corporate board directors include:
- Shifting economic conditions
- Regulatory requirements
- Cybersecurity threads
- Competition for talent
- Geopolitical volatility
- Artificial intelligence (AI)
On the other hand, some of the challenges that keep nonprofit directors up at night include:
- An ongoing nonprofit workforce shortage crisis, which indicates labor market economics are not effectively serving nonprofit organizations.
- Growing demand for services, amidst rising costs due to inflation and a decline in private donations.
- A need for targeted, temporary tax provisions that would be triggered by natural disaster declarations by the President.
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Data is More Important Than Ever
To address the trends and challenges of 2025, board directors must access and analyze the right data. In fact, according to Levine, “Data is more important than it’s ever been. Real data is incredibly acute.”
Most modern organizations have no shortage of data. However, Levine’s recommendation is to have an agreed-upon database of around four to five metrics that become the dashboard for the board. The business world is unpredictable, and according to Levine, when the board has access to these agreed-upon data points, “everyone understands how we’re moving forward.”
Levine also recommends corporate boards “move from a two-year cycle on strategic planning, which used to be common practice, to discuss strategy at every meeting.” Those strategy discussions should be tied into the board’s data dashboard.
Socash agreed on the importance of zeroing in on the right data. “So much of the nonprofit world is human-focused and human-centered,” she explained. “There’s a natural tendency among board members to get into pockets of data that are interesting and heartwarming, but irrelevant when it comes to making decisions about our finite resources.”
When it comes to data, Socash stressed the importance of creating a boundary between what’s interesting to know and what the board must know. For example, nonprofits must have a regularly updated picture of the organization’s cash situation. That includes data on unrestricted assets, cash flow, and fundraising. In addition, nonprofit boards need data about the outcomes related to the organization’s impact.
Boards Must Keep the Conversations Going
The conversations that happen around the boardroom table are important. However, the most successful boards are those that stay active and engaged between meetings, too.
It’s important to foster a culture that’s respectful and enables directors to openly communicate with one another, before, during and after board meetings. Board leadership must set the tone from the top.
“It’s the lead director’s job to make sure there’s continuity of conversation,” Levine said. “Gone are the days when a director would show up for a quarterly meeting and then wouldn’t engage for another quarter.”
Nonprofits also struggle to keep directors engaged. “It’s definitely a challenge, particularly in the nonprofit sector,” Socash said. “It can be a scramble to get board members to agree to be board members. To get engagement outside of the boardroom is equally challenging.”
Socash stressed the importance of setting expectations from the start. In addition, board directors must hold each other accountable. Socash recommended saving some time at the end of board meetings for a reflective process to ask key questions like:
- How did this meeting go?
- Who’s going to do what, by when?
Technology plays a key role in keeping board members engaged between meetings. “The real secret sauce is using the board portal in between board meetings,” said Socash. However, she reminded attendees that while there’s much that technology can do for us, “the human element has to really step in and activate around it. That’s what makes the difference.”
AI Continues to Impact Organizations
Artificial intelligence has been around for some time, but it’s only recently gone mainstream. While AI is already affecting the business world, many boards aren’t quite ready to embrace it.
“What we’re seeing right now is initial skepticism about what AI implies and what the opportunity is,” said Levine. “What I feel from boards is fear. Fear of the unknown. If you don’t understand what AI can potentially do, you’re not as likely to grab on to the concept strategically.”
However, board directors must overcome their fear to understand AI’s potential. For example, Levine recounted a story of an urban forestry organization that leveraged AI to diagnose the wellness of every tree. “You need to show the implications to directors,” he said. “Take the fear out of the equation and have people embrace it and support it financially so we can move society in the direction we should.”
Socash has also witnessed nonprofits using AI in innovative ways. For example, some organizations are leveraging AI to conduct an anonymized fundraising analysis that can inform a more effective fundraising approach. Others are using it to better understand program outcomes – and use those insights to support decision-making. Those are just a few of many examples. “There’s so much power that’s untapped,” she said.
According to Socash, now is the time to start thinking about an AI governance policy for your organization. “This is a great time for our nonprofit leadership, particularly our boards, to be designing and implementing their first AI governance policy,” she said. “This is so critical right now. Nonprofits must take the first step to define the difference between appropriate and inappropriate use of AI.”
Comfort with Ambiguity is Critical
Modern directors must be active participants in discussions on a wide array of topics, from cybersecurity to AI to Diversity, Equity, and Inclusion (DEI) and Environmental, Social, and Governance (ESG). But that doesn’t mean every director must be an expert on every topic.
“A lot of people think everyone around the table needs to be a cyber expert. I disagree,” said Levine. “Directors need to be able to ask the right questions.”
The world is constantly changing, and it’s impossible to predict what’s next. As such, it’s essential for directors to be comfortable with ambiguity.
“Allowing for comfort in the ambiguous can get us moving forward,” said Socash. You don’t have to be experts before you can move forward with a new technology, strategy, or approach.”
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About The Author
- Adam Wire
- Adam Wire is a Content Marketing Manager at OnBoard who joined the company in 2021. A Ball State University graduate, Adam worked in various content marketing roles at Angi, USA Football, and Adult & Child Health following a 12-year career in newspapers. His favorite part of the job is problem-solving and helping teammates achieve their goals. He lives in Indianapolis with his wife and two dogs. He’s an avid sports fan and foodie who also enjoys lawn and yard work and running.
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