Nonprofit Governance Models
Good governance is essential to the success and sustainability of nonprofits. However it is not always the case that nonprofit boards operate well. In fact, a poorly governed board can cause the organization to fail. Whether your nonprofit is just beginning its journey or has been operating for a while now, ensuring your board’s effective functioning can help it weather challenges and make it a long-term success.
The primary function of a board member for a non-profit organization is to establish the strategic plan. Nonprofits should select board members who are willing to put in the time and effort required to accomplish this mission. This requires a thorough selection process to determine the right mix of diverse backgrounds, expertise and knowledge. It’s also crucial to ensure that new and experienced 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 important tasks of the organization, they must be able trust the executive director with the day-to-day operations of the non-profit. Nonprofits must avoid relying solely on board committees to perform operational duties, as this could lead to a lack of accountability and inefficient decision making.
When a nonprofit board is not governed by an official CEO, it typically uses the Cooperative Governance Model. It is a democratic model that distributes power equally among the board members. It works best when board members show a similar dedication to the organization and the willingness to keep each other accountable for their actions. To reduce conflicts of interest, the nonprofit should create an appropriate policy regarding conflicts of interest, and then discuss it regularly with board members.