Nonprofit Governance Models Matter

Nonprofits face a myriad of problems, including resource constraints, fundraising requirements and legal restrictions. The governance teams of these organizations are responsible for balancing all of these requirements. This is why nonprofit governance models are so important.

Nonprofit governance models arrange the committees and activities of the board along functional lines. If there are staff responsible for finance and human resources as well as fundraising and planning then the board may establish committees to concentrate 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.

Although this structure is efficient however, it can lead to a board that is overburdened with responsibilities and struggling to make decisions. Many nonprofits are adopting other governance models which give responsibility to individuals while requiring board members to meet regularly in order to ensure the proper functioning.

Another crucial role of https://mindboardroom.com/5-most-common-nonprofit-governance-models/ the board is establishing goals for the nonprofit’s strategic direction. This is accomplished by identifying the most pressing needs and problems and then identifying solutions for the organization to pursue. This is usually accomplished through a SWOT analysis and an evaluation plan that incorporates concrete metrics to measure success.

The board is not just required to establish the strategic direction but also decide on and evaluate the executive director. This is often one of the most challenging tasks, because it requires a blend of management capabilities, expertise in the area of program and a particular style of leadership. A well-run board will come up with an outline of the job and then hire an Executive Director who is a good fit.