Nonprofit Governance Models Matter

Nonprofits face many difficulties, such as resource constraints, fundraising requirements and legal restrictions. The people who oversee these organizations are responsible for balancing these demands, which is why governance models for nonprofits matter so much.

Non-profit governance models organize the committees of the board and their activities according to functional lines. If there are staff responsible for finance and human resources or fundraising and planning The board could establish committees to concentrate on these topics. This model of management teams, which is the most popular among small and medium-sized nonprofits, was popularized by John Carver’s Policy Board Model in the 1970s.

This structure can be efficient however it could result in a board overburdened with responsibilities and unable to make decisions. This is why more nonprofits are adopting alternative governance models that delegate the responsibility to the individual members, while requiring the board to meet regularly to ensure its functioning.

The other major function of a board is to set the strategic goals for the non-profit. This explanation is done by identifying the most urgent needs and issues and devising solutions the nonprofit can pursue. This is usually done with a SWOT analysis and an outcome evaluation scheme that includes specific metrics to assess the effectiveness.

In addition to setting the strategic direction, the board must also select and assess its executive director. This is among the more difficult tasks because it requires a blend of management expertise, knowledge in program areas, and the ability to lead. A well-run board will develop a clear job description and then hire an Executive Director who is a good match.