Good governance is essential to the sustainability and leadership of nonprofits. However, not all nonprofit boards are effective. A poorly managed board can even result in the organization’s demise. If your organization is new or has been around for a while, making sure your board functions effectively can aid it in overcoming its challenges and make progress in the long term.
The most important job of a non-profit board is the development of a strategic vision. The nonprofit board must be selected by members who are able to devote the time and effort required for this job. This is a lengthy selection process to find a mix of different backgrounds and skills. It is essential to provide training and support for both the new as well as veteran members of the board when they work together and make top-level decisions for the non-profit.
If the board has a priority for strategic goals, they should be able trust the executive director to run the day-today activities of the non-profit. Nonprofits must avoid relying solely on board committees to perform operations, as this can lead to a lack of accountability and inefficient decision-making.
If a board of a non-profit organization is not governed by an official CEO, it typically is run by the Cooperative Governance Model. This is a democratic model that distributes power evenly among board members. It is most effective when board members show a similar commitment to the company and an ability to hold each other accountable for their actions. To avoid conflicts of interests the nonprofit must develop a well-written policy on conflict of interests and discuss it with board members regularly.
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