Nonprofits face many problems, such as limited resources, fundraising requirements and legal limitations. These organizations’ governance teams are charged with balancing all of these demands. This is why the models of governance for nonprofits are so important.
Governance models for nonprofits organize the committees and activities of the board according to functional boundaries. For example when there are staff members who are responsible for human resources, finance planning, and fundraising the board could form committees focusing on these areas, too. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is most common among medium and small nonprofits.
This structure may be effective but it can result in a board that is overwhelmed with responsibility and unable make decisions. As more and more nonprofits adopt different governance models that assign responsibility to individual members and require board members to meet regularly in order to ensure that their functions are in order.
Another important function of the board is to set goals for the nonprofit’s strategic direction. This is done by identifying the most urgent needs https://mindboardroom.com/5-most-common-nonprofit-governance-models/ and issues, and developing solutions that the nonprofit can explore. This is usually accomplished through a SWOT and an outcome evaluation plan that includes concrete metrics to gauge the effectiveness of the organization.
In addition to setting the strategic direction, the board must also choose and assess its executive director. This is often among the most difficult tasks since it requires a combination of management abilities, knowledge of the program area and leadership style. A well-run board will develop a clear job description and choose an Executive Director who is a good fit.
