Nonprofits face many difficulties, such as resource constraints as well as fundraising requirements and legal restrictions. The governance teams of these organizations are charged with balancing all of these demands. This is why nonprofit governance models are so crucial.
Nonprofit governance models arrange the board’s committees and activities along functional lines. If there are staff members responsible for finance and human resources or planning and fundraising then the board can establish committees to concentrate on these topics. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is most prevalent among medium and small nonprofits.
While this structure can be effective but it can also lead to https://mindboardroom.com/5-most-common-nonprofit-governance-models/ a board that is overwhelmed with responsibilities and struggles to make decisions. A growing number of nonprofits adopt other governance models which delegate responsibility to individuals while requiring board members to meet regularly to ensure proper function.
Another important role of the board is establishing strategic goals for the nonprofit. This is done by identifying urgent needs and issues and identifying solutions the organization can explore. This is usually accomplished through the use of a SWOT and an evaluation of the outcome that includes specific metrics for measuring success.
In addition to setting the strategic direction, the board must also choose and assess its executive director. This is one of the more difficult tasks because it requires a blend of management expertise, knowledge in program areas, as well as a leadership skills. A well-run board will develop an outline of the job and select an Executive Director who is a good fit.