New Year, Stronger Governance: Why Board Leadership Matters More Than Ever

As nonprofit health and human services organizations enter a new calendar year, CEOs face a familiar mix of opportunity and pressure: new legislation taking effect, shifting policy priorities, evolving funding requirements, and growing expectations for accountability and impact. In this environment, strong board governance is foundational.

The beginning of the year presents a unique window to reset expectations, align leadership, and position boards to be effective strategic partners rather than reactive overseers. Even if this is not the beginning of your organization's fiscal year, for CEOs, this is the moment to intentionally engage boards in governance work that supports compliance, risk management, and mission advancement.

Early-Year Governance Is Critical

January often brings regulatory changes that directly affect nonprofit operations—from employment law and reporting requirements to healthcare reimbursement and funding compliance. Boards that understand these changes early are better equipped to fulfill their fiduciary duties and support executive leadership.

Strong governance at the start of the year:

• Establishes clarity around priorities and risks

• Aligns strategy with the evolving policy environment

• Reinforces accountability and transparency

• Builds trust between the board and executive leadership

When governance is proactive, organizations are more resilient throughout the year. Below are five steps to take at the beginning of the calendar year to ensure the board is educated and aligned:

1. Board Education: Governing in a Changing Policy Environment

Boards cannot govern effectively without a clear understanding of the legislative and policy context in which the organization operates. Early in the year, CEOs should ensure boards receive targeted education on:

• New or pending federal, state, and local legislation impacting operations

• Changes to healthcare or human services funding streams

• Updated compliance expectations from regulators and major funders

• Broader policy trends affecting mission delivery

Policy updates and education do not require turning board members into policy experts. Instead, it ensures they have sufficient context to ask the right questions, assess risk, and guide strategy. Dedicate time at the first or second board meeting of the year to a focused policy and compliance briefing.

2. Establishing an Annual Governance Workplan

Effective boards operate with intention. A well-developed governance workplan transforms governance from a series of disconnected agenda items into a disciplined leadership practice.

An annual governance calendar should outline:

• Committee responsibilities and review cycles

• Key compliance and risk oversight milestones

• CEO evaluation and goal-setting timelines

• Board self-assessment and development activities

• Strategic planning and dashboard reviews

For CEOs, this shared roadmap creates predictability and reinforces the board’s role in strategy and compliance rather than day-to-day operations.

3. Reviewing and Refreshing Governance Documents

The beginning of the year is an ideal time to review core governance documents, especially after legislative or regulatory changes. Changes in regulation and law can affect board operations.

Key documents to revisit include:

• Bylaws and board policies

• Conflict of interest and ethics policies

• Whistleblower and compliance policies

• Delegation of authority frameworks

• Board and committee role descriptions

These reviews are not a formality or “checking the box” activities; they are about ensuring governance structures remain aligned with legal obligations and organizational complexity.

4. Linking Strategy, Compliance, and Oversight

Boards add the most value when governance and strategy are aligned. CEOs should frame early-year strategic discussions through the lens of policy and compliance impact:

• How do new regulations affect strategic priorities?

• What risks or opportunities arise from policy changes?

• Where does the board need to deepen oversight or advocacy?

This approach reinforces that compliance is not separate from mission, and it is part of responsible strategy execution.

5. Risk Oversight and Accountability

Policy change often reshapes organizational risk. Boards must understand how those risks are identified, monitored, and mitigated within the organization. CEOs can support boards by:

• Presenting clear enterprise risk summaries

• Linking risks to legislative or regulatory drivers

• Providing dashboards that track compliance and performance trends

• Ensuring audit and compliance plans reflect current realities

Effective risk oversight allows boards to govern with confidence.

Board Governance is a Strategic Advantage

In today’s nonprofit health and human services environment, board governance is about compliance and leadership. CEOs who intentionally engage their boards at the beginning of the year create alignment, resilience, and shared accountability that carry the organization forward.

A well-prepared board does more than fulfill fiduciary duties. It becomes a strategic partner helping organizations navigate policy change, manage risk, and advance mission with confidence.