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Board populated with members only?

Our theater company just became a 501(c)(3). Some of the members only want members on the board, but others believe the board should have "outsiders" who are "disinterested" parties. No one gets paid, but we believe members are somewhat "interested" and therefore a board with members only will not be acceptable for public funding. What do you think?

I doubt that it makes any difference for public funding, but I am a great believer that diversity strengthens a board. See Ready Reference Page: "Boards Should Build Diversity for Maximum Performance."

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