Nonprofit Governance Models

Good governance is essential to the sustainability and leadership of nonprofits. However there are many nonprofit boards that do not operate well. A poorly managed board could even result in the organization’s demise. If your non-profit is just beginning or has been around for a time, making sure that your board is functioning effectively can help it overcome challenges and make progress in the long run.

The primary function of a nonprofit’s board is to establish an overall strategy. The board should be comprised of people who are willing to commit the time and effort to accomplish this mission. This requires a comprehensive selection process to determine the ideal mix of diverse backgrounds, expertise and experience. It is also crucial to ensure that new and veteran board members receive training and assistance in their efforts to make decisions at the highest level for the nonprofit.

If the board is able to prioritize strategic objectives, they should be able trust the executive director to run the day-to-day operations of the non-profit. Nonprofits should not rely solely on committees of the board to manage operational duties, as this could result in unreliable and inefficient decision making.

If a non-profit board doesn’t have a CEO who is an official, it is often operating under the Cooperative Government Model. This is a model that is highly democratic which distributes power evenly among the board members. It is recommended that board members can demonstrate equal commitment to the organization, and are willing to hold each other accountable for their actions. To reduce conflicts of interest the nonprofit should develop a well-written policy on conflict of interest and discuss the policy with board members frequently.

https://mindboardroom.com/5-most-common-nonprofit-governance-models/