Nonprofits face many problems, such as limited resources, fundraising requirements, and legal limitations. The governance teams of these organizations have to balance all of these demands. This is the reason why nonprofit governance models are crucial.

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

While this structure can be effective however, it can lead to an overburdened board with responsibilities and struggles to make decisions. Many nonprofits are adopting different governance models that assign responsibility to individual members, while requiring the board members to meet regularly in order to ensure proper function.

Another major function of the board is setting strategic goals for the nonprofit. This is accomplished by identifying urgent needs and issues and then determining solutions the nonprofit can explore. This is usually done with a SWOT analysis and an outcome evaluation strategy that includes concrete measures to measure the success.

The board cannot only determine the strategic direction, but also select and evaluate the executive director. This is one of the most difficult tasks as it requires a blend of management abilities, experience in the areas of program, and leadership skills. A well-run board comes up with an unambiguous job description and appoints an Executive Director that is a perfect match.

https://mindboardroom.com/5-most-common-nonprofit-governance-models/