Nonprofit Governance Models Matter

Nonprofits are confronted with a variety of challenges including limited resources, fundraising requirements, and legal restrictions. The governance teams of these organizations are charged with https://mindboardroom.com/5-most-common-nonprofit-governance-models/ balancing all of these requirements. This is the reason why the governance models of nonprofits are so important.

Nonprofit governance models organize the committees of the board and their activities according to functional lines. For example when there are staff members responsible for finance, human resources planning, fundraising and human resources the board may form committees that focus on these topics, too. The management team model, which is most prevalent among small and medium-sized nonprofits was popularized by John Carver’s Policy Board Model in the 1970s.

Although this structure is efficient but it can also lead to an overburdened board with responsibilities and struggling to make decisions. More and more nonprofits adopt different governance models that give responsibility to individuals and require board members to meet regularly to ensure proper function.

A board’s other important function is to set strategic goals for the non-profit. This is done by identifying the most pressing requirements and issues and formulating solutions for the nonprofit to pursue. This is usually done through an SWOT and an evaluation of the outcome that includes concrete measures to measure the success.

In addition to establishing the strategic direction the board must also choose and assess its executive director. This is 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 create a clear job description and hire an Executive Director who is a good match.