Nonprofit Governance Models

Good governance is vital to the sustainable and effective management of non-profit organizations. Not all nonprofit boards are well-run. In fact, a poorly managed board could cause the organization to fail. If your non-profit is just beginning or has been around a time, making sure that your board is in good working order can aid in overcoming obstacles and succeed over the long haul.

The most important role of a board member for a non-profit organization is to formulate an overall strategy. Nonprofits must select board members who are willing to put in the time and effort needed to accomplish this task. This is a lengthy selection process to discover a mix of different backgrounds and skills. It is essential to provide training and support to both the new and veteran members of the board when they collaborate and make high-level decision for the organization.

If the board is able to prioritize strategic goals, they should be able to trust the executive director to run the day-today operations of the non-profit. Nonprofits should not rely solely on the committees of the board for operational duties. This can lead to inefficiency and a lack of accountability.

If a board of a non-profit organization doesn’t have an official CEO, it will often operate using the Cooperative Government Model. It is a democratic model www.mindboardroom.com/automated-workflow-with-virtual-data-room-software/ which distributes power evenly between board members. It is most effective when board members are able to demonstrate a common commitment to the organization and the willingness to hold each other accountable for their actions. To avoid conflicts of interest the nonprofit should develop a clear policy on conflicts of interest, and then discuss it regularly with board members.