Who do you know, or what do you know? Board intellectual capital components for non-profit board role fulfilment

Abstract

Purpose: Nonprofit organisations (NPOs) are crucial in building stable and equal societies. NPOs remain under pressure due to increased societal needs and a competitive funding environment. The board of directors (BOD) is responsible for the organisation’s long-term success. Guidelines for the BOD of NPOs are limited, which leaves NPOs vulnerable. This research gap was addressed by exploring board intellectual capital components, specifically human (HC), social (SC), structural (STC) and cultural capital (CC), sufficient for nonprofit board role fulfilment.

Design/methodology/approach: Exploratory, qualitative research was conducted. Sixteen registered social services NPOs in South Africa were selected through purposive sampling methods. The NPO was considered from a case-based perspective through fuzzy-set qualitative comparative analysis (fsQCA).

Findings/results: STC and SC proved sufficient for nonprofit board role fulfilment. Specifically, STC proved sufficient for the monitoring role, SC for the advisory role, and STC and SC were conjointly sufficient for the provision of resources role of the BOD.

Practical implications: By prioritising the SC and STC of the BOD, NPOs can fulfil all three board roles independently of HC. Rather than relying on individual expertise, this approach leverages networks, relationships, and organisational structures to sustain board functionality, thus enabling NPOs to drive long-term sustainability without being dependent on the availability of specific skills or professional experience.

Originality/value: This research adopted a case-oriented approach to the BOD of NPOs in South Africa. The findings broaden the understanding of nonprofit governance by highlighting SC and STC as sufficient alternative pathways for fulfilling nonprofit board roles.