Does my social enterprise really need an independent board?

If you’re running a social enterprise or impact-led organisation, chances are you didn’t start it because you love governance. You were responding to a need, like many social entrepreneurs, likely driven by empathy and a strong sense of purpose. The focus was on doing the work and getting impact happening.  

So, when people start talking about independent boards or non-executive directors, it can feel removed from the day-to-day reality. Sometimes it feels like something you can worry about later, once you’re bigger or more established.  

But for organisations that want to grow, attract funding or investment, and protect their mission over time, good governance plays a much bigger role than many people expect.  

What good governance really gives you 

Good governance doesn’t mean unnecessary layers or slowing things down. In practice, it creates steadiness. 

It gives your organisation a clearer way to: 

• make decisions as things get more complex 

• manage risk before it becomes a problem 

• stay accountable to purpose when pressure builds 

• maintain financial oversight with fresh perspective beyond daily operations 

• access networks, partnerships and growth opportunities through board connections with credibility.  

As funding increases, opportunities move faster, and growth stretches capacity, governance helps ensure your mission doesn’t get diluted along the way. 

For impact-led organisations, where trust and impact matter just as much as financial performance, this structure supports long-term sustainability. 

Strong boards don’t have to be expensive 

There’s a common perception that good governance is costly or overly formal. In reality, many experienced professionals are actively looking to contribute their skills to organisations they believe in. 

With clear expectations and a thoughtful approach to recruitment, social enterprises and not-for-profits can attract board members who bring: 

• governance experience 

• financial or legal insight 

• strategic thinking and networks 

• lived experience and community understanding 

• social capital through networks 

Many are willing to do this on a voluntary basis. The value they bring often far outweighs the effort it takes to find them. 

Governance and investment readiness 

When funders or impact investors assess an organisation, they’re not just looking at the strength of the idea or the impact story. 

They’re also looking at: 

• how decisions are made 

• whether responsibility sits with one person or is shared 

• how financial and organisational risk is managed 

• whether the mission is protected as the organisation grows 

A capable, independent board helps demonstrate all of this and builds confidence that impact can be delivered over the long term. 

Where to start...

You don’t need to build a perfect board overnight. 

A useful first step is getting clear on what your organisation actually needs at this stage. A simple skills matrix can help you identify gaps across areas such as: 

• finance and oversight 

• governance and risk 

• strategy and growth 

• fundraising or business development 

• impact measurement 

• lived experience relevant to your work 

That clarity makes recruitment more intentional and helps ensure new board members are aligned with your purpose and direction

As you finalise your board composition, it’s essential to consider not just the diversity in gender, age, culture, and professional backgrounds, but also the behavioural dynamics and diversity of thought.  

A board thrives when its members bring varied perspectives and challenge each other's assumptions in a respectfully and collaboratively. Encouraging a balance of different viewpoints ensures better decision-making and drives both innovation and the ability to navigate complex challenges effectively.  

Thinking ahead 

If your organisation is likely to stay small and informal, an independent board may not feel urgent.  

But if you’re looking to grow, attract funding or investment, or build something that lasts beyond a few key individuals, governance becomes much more important. 

A strong, independent board helps you: 

• slow down at the right moments 

• think beyond immediate pressures 

• make decisions that protect both your mission and your people 

It challenges assumptions when things feel straightforward, offers support when there’s uncertainty, and helps leaders step back to get clarity when the work gets complex. Over time, this helps your organisation stay resilient, credible and confident as you grow.