Enhancing Board Performance In The Islamic Non-Profit Sector

Analysis and Recommendations
By Aamir A. Rehman
ISPU Research Associate

This study, conducted by ISPU Research Associate Aamir Rehman, seeks to explore board performance in the Islamic nonprofit sector and to provide recommendations to improve the effectiveness of boards in the sector. The study focuses on faith-based organizations in the United States which seek to serve the country's growing community of roughly 7 million Muslims.

Section One of the study discusses the current state of board performance in the sector, exploring how boards are chosen, how board members spend their time, and key challenges boards face in upholding their responsibilities. The study found that these challenges often prevent boards from devoting their time to the activities which they "should" be undertaking according to their organizations' charters and their own aspirations.

Section Two provides recommendations for improving board performance by addressing the challenges discussed in Section One. Most of the recommendations require only modest changes to current governance structures but require significant changes to how board members prioritize activities and spend their time. We believe that a change in priorities, more than for a change in structures, will lead to significantly improved performance of boards (and, by extension, organizations) in the Islamic nonprofit sector.

KEY FINDINGS

• Board members are principally chosen based on their past contribution to the organization rather than their fit with its future needs.

• The same board often assumes both governance and management responsibilities.

• Often, less than half of a board member's time with the organization is devoted to "board-level" issues.

• Cultural diversity often creates substantial challenges to board cohesion.

• Organizations offer board members little or no management training.

CORE RECOMMENDATIONS

1. Emphasize forward-looking criteria when selecting members of the

   board.

2. Give board members annual performance reviews.

3. Create an operating committee distinct from the board of trustees.

4. Engage the board in joint spiritual and educational activities.

5. Provide board members ongoing management training and support.