Nonprofits face a myriad of issues, such as resource limitations, fundraising requirements, and legal restrictions. Governance teams in these organizations are charged with balancing all of these requirements. This is why the governance models of nonprofits are so crucial.
Governance models for nonprofits organize the board’s activities and committees according to functional boundaries. If there is a staff member responsible for finance and human resources, or planning and fundraising then the board may establish committees to concentrate on these topics. John Carver’s Policy Board Model popularized this management team model in the 1970s. It is the most frequent among medium and small nonprofits.
This type of structure can be effective, but it can also result in a board overburdened with responsibilities and unable to make decisions. This is the reason why more nonprofits are adopting alternative governance models that delegate the responsibility to each member, and requiring the board to meet regularly to ensure its functioning.
Another major function of the board is establishing goals for the nonprofit’s strategic direction. This is done by identifying urgent needs and issues and identifying solutions the organization can explore. This is typically done using an SWOT and a scheme for evaluating the outcomes that includes concrete metrics to gauge the effectiveness of the organization.
The board has to not only establish the strategic direction but also select and evaluate the executive director. This is one of the most difficult tasks as it requires a mix of management abilities, experience in program areas, as well as a leadership skills. A well-run board will come up with an outline of the job and select an Executive Director who is a good match.
https://mindboardroom.com/5-most-common-nonprofit-governance-models/