Nonprofit Governance Models Matter Leave a comment

Nonprofits face many challenges, including resource constraints, fundraising requirements, and legal restrictions. The people who oversee these organizations are tasked with keeping the demands in check. This is why governance models for nonprofits matter so much.

Governance models for nonprofits organize the committees and activities of the board according to functional boundaries. If there are employees responsible for human resources and finance, or planning and fundraising then the board may form committees to focus on these subjects. This management team model that is prevalent in small and medium-sized nonprofits was popularized by John Carver’s Policy Board Model in the 1970s.

This structure can be efficient however it could cause a board to be overwhelmed with responsibility and unable make decisions. More and more nonprofits adopt different governance models that assign responsibility to individual members while requiring board members to meet regularly to ensure that their functions are in order.

Another important role of the board is setting the strategic goals of the organization. This is accomplished by identifying the most pressing issues and needs and developing solutions for the organization to pursue. This is typically done through a SWOT analysis and an outcome evaluation process that incorporates specific metrics to gauge the success.

The board has to not only establish the strategic direction but also choose and evaluate the executive director. This is mindboardroom.com usually one of the most challenging tasks, because it requires a mixture of management skills, program area knowledge and a leadership style. A well-run board will develop an outline of the job and appoints an Executive Director who is a good fit.