Good governance is vital to the long-term viability and leadership of nonprofits. Not all boards of nonprofits are well-run. A poorly managed board can even result in the organization’s demise. If your nonprofit is new or has been around for a time, making sure that your board is in good working order can aid it in overcoming its challenges and be successful in the long run.
The most important function of a nonprofit board is strategic vision development. Nonprofits should select board members who are prepared to invest the time and effort for this task. This requires a careful selection process to select a mixture of diverse backgrounds and expertise. It is crucial to provide training and support for both new and veteran members of the board as they collaborate and make high-level decision for the non-profit.
When the board puts a high priority on important tasks of the organization, they must be able trust the executive director to manage the day-today operations of the non-profit. Nonprofits should not rely solely on committees of the board to manage operational duties, as this can lead to a lack of accountability and inefficient decision-making.
If a board of a non-profit organization doesn’t have an official CEO it typically operates under the Cooperative Government Model. This is a model that is highly democratic that distributes the power equally between the board members. It is best if board members can demonstrate equal commitment to the organization and are willing to be accountable for their actions. To reduce conflicts of interest the nonprofit should develop an effective policy on conflicts of interest and review it regularly with board members.
