Nonprofits are confronted with a variety of issues, including limited resources, fundraising requirements, and legal restrictions. Governance teams in these organizations are responsible for balancing all of these requirements. This is why the models of governance for nonprofits are so important.

Nonprofit governance models arrange the committees and activities of the board in a way that is functional. If there is a staff member responsible for human resources and finance as well as fundraising and planning, then the board could establish committees to concentrate on these topics. The management team model, which is the most popular among small and medium-sized nonprofits, was popularized by John Carver’s Policy Board Model in the 1970s.

Although this structure is efficient, it can result in an overburdened board with responsibilities, and is unable to make decisions. This is why more nonprofits are adopting other governance models that assign responsibility to members individually, and virtual data room software require the board to meet regularly to ensure its functioning.

The other major function of a board is to establish the strategic goals for the non-profit. This is done by identifying the most pressing issues and needs and developing solutions for the organization to pursue. This is usually accomplished through the use of a SWOT analysis and an outcome evaluation plan that incorporates concrete metrics to measure success.

The board is not just required to decide on the strategic direction, but also choose and assess the executive director. This is often one of the most difficult tasks because it requires a blend of management abilities, knowledge of the program area and a certain style of leadership. A well-run board develops an outline of the job and hires an Executive Director that is a good match.