Nonprofits are faced with many challenges, such as limited resources fundraising requirements and legal limitations. The teams that oversee these organizations are tasked with keeping these demands in check, which is why governance models for nonprofits are so important.
Non-profit governance models organize the board’s committees and activities on functional lines. If there are staff members responsible for finance and human resources or planning and fundraising then the board can organize committees focusing on these topics. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is the most popular in medium and small nonprofits.
While this model is effective but it could result in a board my blog that is overwhelmed with responsibilities, and is unable to make decisions. Many nonprofits are adopting different governance models that assign responsibility to individual members and require board members to meet regularly to ensure the proper functioning.
Another crucial role of the board is to set objectives for the nonprofit’s strategy. This is done by identifying urgent needs and issues, and developing solutions that the nonprofit could explore. This is usually done through an SWOT and a scheme for evaluating the outcomes, which includes concrete measures to measure the success.
The board is not just required to determine the strategic direction, but also decide on and evaluate the executive director. This is often among the most difficult tasks because it requires a mixture of management capabilities, expertise in the area of program and a certain style of leadership. A well-run board will draft a clear job description and choose an Executive Director who is a good fit.
