A good governance system is essential to the sustainable and effective management of nonprofits. However, not all nonprofit boards are effective. A poorly run board could even result in the organization’s demise. If your nonprofit is brand new or has been operating for a time, ensuring that your board is functioning effectively can aid it in overcoming its challenges and make progress in the long run.
The primary function of a nonprofit’s board is to formulate a strategic vision. Nonprofits must select board members who are willing to put in the time and effort needed to accomplish this task. This requires a thorough selection process to determine the ideal mix of diverse backgrounds, skills, and experiences. It is also essential to ensure that both new and veteran board members receive training and assistance when they collaborate to make high-level decisions for the non-profit.
If the board is able to prioritize important tasks of the organization, they must be able to trust the executive director to oversee the day-to-day operations of the non-profit. Nonprofits should avoid relying entirely on board committees to handle operations, as this can result in the lack of accountability and inefficient decision making.
If a non-profit board does not have an official CEO, it typically operates using the Cooperative Governance Model. This is a highly democratic model which distributes power evenly among board members. It is ideal if board members have a similar dedication to the organization and are willing to hold each other responsible for their actions. To reduce conflicts of interest the nonprofit must develop an appropriate conflict of interests policy and regularly discuss it with board members.
English
Hungarian
Italian
Maltese
Polish
Spanish
