Nonprofit Governance Models Matter

Nonprofits are faced with a variety of difficulties, such as resource constraints, fundraising requirements and legal restrictions. The teams that govern these organizations are responsible nonprofit governance models for balancing all of these requirements. This is why nonprofit governance models are crucial.

Nonprofit governance models arrange committees and board activities in a way that is functional. For example when there are staff members responsible for human resources, finance planning, fundraising and human resources the board could form committees focusing on these aspects, too. This model of management teams, that is popular with medium and small-sized nonprofits was popularized by John Carver’s Policy Board Model in the 1970s.

This structure can be efficient but it can cause a board to be overwhelmed with responsibility and unable make decisions. This is the reason why more nonprofits are adopting other governance models that delegate the responsibility to the individual members, while requiring the board to meet regularly to ensure proper functioning.

A board’s other important function is to establish strategic goals for the non-profit. This is accomplished by identifying the most pressing needs and issues and then identifying solutions for the nonprofit to pursue. This is usually done with a SWOT and an evaluation of the outcome that incorporates concrete measures of success.

The board must not only establish the strategic direction but also decide on and evaluate the executive director. This is often one of the most difficult tasks since it requires a combination of management abilities, knowledge of the program area and a leadership style. A well-run board develops a clear job specification and selects an Executive Director who is a good match.