Nonprofit Governance Models Matter

Nonprofits face a myriad of issues, such as resource limitations, fundraising requirements, and legal restrictions. Governance teams in these organizations are charged with balancing all of these https://mindboardroom.com/ demands. This is why the governance models of nonprofits are so important.

Non-profit governance models organize the board’s committees and activities along functional lines. For instance in the event that there are staff members responsible for human resources, finance planning, and fundraising the board could form committees that focus on these areas, too. This model of management teams, that is prevalent in small and medium-sized non-profits, was popularized by John Carver’s Policy Board Model in the 1970s.

Although this structure is efficient however, it can lead to an overburdened board with responsibilities and struggles to make decisions. Many nonprofits are adopting other governance models which give responsibility to individuals, while requiring the board members to meet regularly to ensure proper function.

The other major function of a board is to set the strategic goals for the non-profit. This is accomplished by identifying the most pressing issues and needs and then identifying solutions for the nonprofit to pursue. This is typically done using a SWOT and outcome evaluation scheme that includes specific measures to measure the success.

In addition to setting the strategic direction, the board must also choose and assess its executive director. This is among the more difficult tasks because it requires a combination of management skills, knowledge in specific areas, and a the ability to lead. A well-run board will come up with a clear job description and then hire an Executive Director who is a good fit.