Nonprofits face a myriad of problems, such as limited resources, fundraising requirements and legal limitations. The teams that govern these organizations are responsible for balancing these demands, which is the reason why models for nonprofit governance are crucial.
Nonprofit governance models organize the committees of the board and their activities according to functional lines. For instance, if there are staff members responsible for finance, human resources planning, fundraising and human resources The board can create committees to focus on these issues, too. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is the most frequent among small and medium nonprofits.
This structure can be efficient but it can result in a board that is overwhelmed with responsibility and unable make decisions. More and more nonprofits adopt other governance models which delegate responsibility to the individual while requiring board members to meet regularly in order to ensure the proper functioning.
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 requirements and issues and determining the best solutions for the nonprofit to pursue. This is usually accomplished through the use of a SWOT and outcome evaluation scheme that includes concrete measures of success.
In addition to setting the strategic direction, the board must also choose and evaluate its executive director. This is one mindboardroom.com of the more difficult tasks because it requires a mix of management skills, knowledge in program areas, and leadership style. A well-run board comes up with an explicit job description and hires an Executive Director who is a good fit.
