Nonprofits are confronted with a variety of problems, such as limited resources, fundraising requirements, and legal limitations. These organizations’ governance teams are charged with balancing all of these requirements. This is the reason why the governance models of nonprofits are so crucial.
Governance models for nonprofits organize the board’s committees and activities along functional lines. If there are staff responsible for human resources and finance or fundraising and planning then the board may establish committees to concentrate on these areas. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is the most popular among medium and small nonprofits.
This type of structure can be effective, but it can also result in a board that is overwhelmed with responsibility and unable to make decisions. A growing number of nonprofits adopt other governance models which give responsibility to individuals, while requiring the board members to meet regularly to ensure their function is in order.
Another important function of the board is establishing objectives for the nonprofit’s strategy. This is accomplished by identifying the most pressing requirements and issues and formulating solutions for the nonprofit to pursue. This is usually done through an SWOT and a scheme for evaluating the outcomes my blog that incorporates concrete measures to measure the success.
In addition to setting the strategic direction The board must also select and assess its executive director. This is one of the most difficult tasks as it requires a blend of management skills, knowledge in specific areas, and a the ability to lead. A well-run board will draft an outline of the job and hire an Executive Director who is a good fit.
