Nonprofits face many problems, including resource constraints, fundraising requirements, and legal restrictions. The committees that run these organizations are tasked with balancing these demands, which is why the governance models of nonprofits matter so much.
Non-profit governance models organize the board’s committees and activities on functional lines. For example in the event that there are staff members responsible for finance, human resources planning, fundraising and human resources The board can create committees focusing on these topics, 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 type of structure can be effective however it could lead to a board overwhelmed with responsibility and unable make decisions. More and more nonprofits adopt different governance models that give responsibility to individuals while requiring board members to meet regularly in order to ensure the proper functioning.
Another important function of a board is to set the strategic goals for the non-profit. This is done by identifying the most pressing needs and issues and then identifying solutions for the nonprofit to pursue. This is usually accomplished through the use of a SWOT and a scheme for evaluating the outcomes that incorporates concrete metrics for measuring success.
The board must not only set the strategic direction but also choose and assess the executive director. This is usually one of the most difficult tasks since it requires a combination of management skills, program area expertise and leadership style. A well-run board will come up with a clear job description and hire an Executive Director who is a good fit.
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