Nonprofits face many problems, including resource constraints as well as fundraising requirements and legal restrictions. The teams that govern these organizations are responsible for balancing all of these requirements. This is the reason why nonprofit governance models are crucial.
Nonprofit governance models organize the activities of the board and committees in a way that is functional. For instance when there are staff members responsible for finance, human resources planning, fundraising and human resources, the board can form committees that are focused on these areas, too. The management team model, that is prevalent in medium and small-sized nonprofits was popularized by John Carver’s Policy Board Model in the 1970s.
While this structure is efficient however, it can lead to an overburdened board with responsibilities and struggling to make decisions. Many nonprofits are adopting different governance models that assign responsibility to individual members while requiring board members to meet regularly in order to ensure proper function.
Another crucial role of the board is establishing objectives for the nonprofit’s strategy. This is done by identifying the most pressing issues and needs and formulating solutions for the nonprofit to pursue. This is typically done using a SWOT and an evaluation of the outcome that includes specific measures to measure the success.
In addition to establishing the strategic direction The board must also select and evaluate its executive director. This is usually one of the most difficult tasks because it requires a mixture of management skills, program area knowledge and a certain style of leadership. A well-run board develops an unambiguous job description and selects an Executive Director that is a perfect match.
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