Nonprofits are confronted with a variety of challenges, such as limited resources fundraising requirements, and legal restrictions. These organizations’ governance teams are charged with balancing all of these demands. This is the reason why the governance models of nonprofits are crucial.
Nonprofit governance models organize committees and board activities along functional lines. If there is a staff member responsible for human resources and finance or planning and fundraising, then the board could form committees to focus on these areas. This management team model which is most prevalent among small and medium-sized non-profits, was popularized by John Carver’s Policy Board Model in the 1970s.
This type of structure can be effective, but it can also result in a board overburdened with responsibilities and inability to make decisions. This is why more nonprofits are embracing alternative governance models that delegate responsibilities to each member, and requiring the board to meet regularly to ensure proper functioning.
Another crucial function of the board is setting objectives for the nonprofit’s strategy. This is done by identifying the most pressing needs and issues and developing solutions for the organization to pursue. This is usually accomplished through the use of a SWOT analysis and an evaluation plan that incorporates concrete measures to measure the success.
The board must not only decide on the strategic direction, but also select and evaluate the executive director. This is one of the most difficult tasks due to the fact that it requires a blend of management abilities, experience in the areas of program, and the ability to lead. A well-run board develops a clear job specification and selects an Executive Director who is a perfect match.
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