Nonprofit Governance Models Matter

Nonprofits face numerous challenges, including resource constraints, 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 so important.

Nonprofit governance models arrange the committees and activities of the board along functional lines. If there is a staff member responsible for human resources and finance, or planning and fundraising then the board can form committees to focus on these subjects. This management team model which is the most popular among medium and small-sized nonprofits was popularized by John Carver’s Policy Board Model in the 1970s.

This model can be effective however, it could result in a board overburdened with responsibility and unable to make decisions. This is why more and more nonprofits are adopting alternative governance models that assign responsibility to the individual members, while requiring the board to meet regularly to ensure its functioning.

Another essential function of the board is establishing strategic goals for the nonprofit. This is accomplished by identifying the most urgent needs and issues and identifying solutions the organization can explore. This is usually done with an SWOT analysis and an outcome evaluation process that incorporates concrete measures to measure the success.

In addition to setting the strategic direction, the board must also choose and assess its executive director. This is among the more difficult tasks because it requires a combination of management skills, knowledge in specific areas, and a leadership skills. A well-run board will develop an outline of the job and hire an Executive Director who is a good match.

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