Nonprofits face many problems, such as limited resources, fundraising requirements, and legal limitations. The people who oversee these organizations are responsible for balancing these demands, which is the reason why models for nonprofit governance matter so much.
Nonprofit governance models arrange the committees and activities of the board along functional lines. For example when there are staff members responsible for human resources, finance, planning and fundraising The board can create committees that are focused on these issues, too. The management team model, which is the most popular among medium and small-sized nonprofits was popularized by John Carver’s Policy Board Model in the 1970s.
While this structure is efficient, it can result in an overburdened board with responsibilities and struggles to make decisions. This is why more and more organizations are adopting alternative governance models that delegate responsibility to members individually, and require the board to meet regularly to ensure its functioning.
A board’s other important function is to establish the strategic goals for the non-profit. This is done by identifying urgent issues and needs and identifying solutions the nonprofit could pursue. This is usually accomplished through a SWOT and an evaluation of the outcome that includes concrete measures of success.
In addition to establishing the strategic direction the board must also select and assess its executive director. This is one of the more difficult tasks since it requires a mix of management abilities, experience in the areas of program, and leadership skills. A well-run board will create a clear job description and then hire an Executive Director who is a good fit.