Nonprofit Governance Models Matter

Nonprofits face many problems, such as limited resources, fundraising requirements and legal restrictions. The committees that run these organizations are charged with keeping the demands in check. This is why the governance models of nonprofits are crucial.

Nonprofit governance models organize the nonprofit governance models board’s committees and activities along functional lines. For instance, if there are staff members responsible for human resources, finance, planning and fundraising the board could form committees focusing on these topics, too. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is most common in medium and small nonprofits.

This model can be effective but it can lead to a board overwhelmed with responsibilities and unable to make decisions. Many nonprofits are adopting different governance models that give responsibility to individuals while requiring board members to meet regularly in order to ensure proper function.

Another important role of a board is to set strategic goals for the non-profit. This is done by identifying urgent issues and needs, and developing solutions that the nonprofit can pursue. This is typically done through the use of a SWOT analysis and an evaluation plan that incorporates specific metrics to assess the effectiveness.

In addition to establishing the strategic direction the board must also choose and evaluate its executive director. This is often one of the most difficult tasks because it requires a mixture of management skills, program area knowledge and a leadership style. A well-run board will draft an outline of the job and select an Executive Director who is a good match.