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ARTICLE · 01 SEPTEMBER 2022

Are Term Limits Right For Your Board?

While term limits for not-for-profit boards of directors are not legally mandated, many organizations consider term limits to be a best practice.

United StatesCorporate/Commercial Law

While term limits for not-for-profit boards of directors are not legally mandated, many organizations consider term limits to be a best practice. Term limits are not right for every organization, though, so you should consider the pros, cons and practical steps involved before you adopt them.

UPSIDES OF LIMITS

Term limits recognize that board members can lose enthusiasm over time or become less committed. Some long-time board members may be ineffective, disruptive or absentee. Negativity of any kind is often contagious and can permeate throughout the rest of the board and your overall not-for-profit organization. At the other end of the spectrum, are those board members who do so much that they are at risk of burnout. Term limits give all of these members a way to make a graceful exit.

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