Nonprofit Governance Models Matter Leave a comment

Nonprofits are faced with a variety of difficulties, such as resource constraints, fundraising requirements and legal restrictions. The teams that govern these organizations are responsible for balancing these demands, which is why governance models for nonprofits matter so much.

Governance models for nonprofits organize the committees of the board and their activities according to functional lines. If there are staff members responsible for finance and human resources as well as fundraising and planning then the board may form committees to focus on these topics. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is the most frequent among small and medium nonprofits.

While this model is effective but it could result in an overburdened board with responsibilities, and is unable to make decisions. This is the reason why more nonprofits are embracing alternative governance models that assign responsibility to members individually, and require the board to meet regularly to ensure its functioning.

Another major role of the board is to set strategic goals for the nonprofit. This is done by identifying urgent you can try these out needs and issues and then determining solutions the organization can explore. This is usually done with an SWOT and an evaluation of the outcome that incorporates concrete measures of success.

In addition to setting the strategic direction, the board must also choose and evaluate its executive director. This is one of the more difficult tasks because it requires a mix of management expertise, knowledge in the areas of program, and leadership skills. A well-run board creates an explicit job description and selects an Executive Director who is a great match.