Good governance is a key element in the sustainability of nonprofits and leadership. However, not all nonprofit boards function effectively. In fact, a poorly-managed board could cause the organization to fail. Whether your nonprofit is just starting out or has been around for some time, ensuring the board’s effectiveness can help it weather challenges and make it a long-term success.
The most important task of a nonprofit’s board is to establish an overall strategy. Board members should be chosen by nonprofits who are prepared to invest the time and energy required for this task. This requires a comprehensive selection process that will find the ideal mix of backgrounds, knowledge and experience. It is important to provide education and support for both the new and veteran members of the board when they work together and make the top-level decisions for the non-profit.
When the board puts a high priority on strategic goals, they should be able to trust the executive director to oversee the day-today operations for the non-profit. Nonprofits must avoid relying solely on board committees to perform operational duties, as this can lead to a lack of accountability and inefficient decision making.
If a non-profit board doesn’t have an official CEO it typically operates under the Cooperative Government Model. It is a democratic model that distributes power equally between the board members. It is recommended that board members can demonstrate equal commitment to the organization and are willing to be accountable for their actions. To avoid conflicts of interests the nonprofit should create a well-written conflict of interest policy and regularly discuss it with board members.