In the world of business governance, the phrase “more is better” doesn’t always apply, especially when it comes to the size of your Board of Directors. In fact, quite the opposite can be true. Whether you’re running a nonprofit or a for-profit company, a smaller, more focused board often results in stronger oversight, clearer direction, and better alignment with your organizational goals.
A common misconception is that a large board brings more diversity of opinion, more oversight, and therefore, better decision-making. But reality tells a different story. When boards become too large, they often suffer from “social loafing,” a psychological phenomenon where individuals exert less effort in a group setting. With 10 or more members on a board, it becomes easy for individuals to disengage, assume others are doing the heavy lifting, and default to rubber-stamping executive decisions.
This dynamic gives disproportionate power to the CEO or Executive Director. In for-profit settings, CEOs of companies with large boards often find themselves in a position where the board serves more as a ceremonial group rather than a governing body. Board meetings devolve into status updates rather than strategy sessions. Key investors or executives are present, but their time is diluted in a sea of non-contributing voices.
Nonprofits are particularly vulnerable to this issue. Many nonprofit bylaws require a large board size, often with 20 or more members, due to fundraising expectations and stakeholder representation. While well-intentioned, this structure can backfire. I once served as treasurer on the board of a small nonprofit with an annual revenue of under $1 million. Despite its modest size, the bylaws required a board of 20 members. Meetings consisted mainly of the Executive Director reporting on actions already taken. Board oversight? Minimal at best. Direction setting? Virtually non-existent. The board was little more than an audience.
Contrast that with small boards—say five to seven members. These groups are nimble, engaged, and typically much more committed to the mission. They’re small enough to allow real conversations and large enough to bring diverse viewpoints. Everyone at the table has a voice and a vote that actually matters. There’s accountability. There’s discussion. There’s leadership.
Ideal Board Sizes by Organization Type
Organization Type
Ideal Board Size
Small Business / Startup
3 to 5 members
Growing Company
5 to 7 members
Established Company
7 to 11 members
Nonprofit Organization
5 to 9 members
Large Corporation
9 to 15 members (max)
Why This Range Works
3 to 5 Members (Small Boards): Best for startups and smaller entities. This size ensures quick decision-making, higher accountability, and active participation. Everyone has a voice, and meetings are easy to schedule and manage.
5 to 7 Members (Balanced Boards): A good balance of diversity and agility. There’s room for different perspectives—such as legal, financial, operational, and strategic—without getting bogged down in bureaucracy.
7 to 11 Members (Mid-to-Large Boards): Suitable for more complex or mature organizations. Still manageable, but now you have specialized committees (e.g., audit, compensation) and more stakeholder representation. Beyond 11, engagement tends to drop off.
Over 15 Members? That’s when boards often become ineffective. Participation wanes, cliques form, and executive leadership can easily dominate discussion or decision-making.
A strong board should guide, not follow, the executive. Its purpose is not just to approve the budget or review the ED’s report—it’s to ask the hard questions, challenge assumptions, and ensure the organization stays aligned with its mission and fiduciary duties.
If you’re forming a board or re-evaluating your current one, ask yourself these questions:
Is our board small enough to allow meaningful participation?
Do members feel personally responsible for governance, or are they just along for the ride?
Does the board guide the CEO or ED, or are they just nodding to every update?
Are the right skills and perspectives represented?
Board composition matters. And size, while often overlooked, can make or break the effectiveness of your organization’s leadership.
So, do you have a Board of Directors? If so, is it small enough to be effective?
