Dec 3, 2024
Good governance is a key ingredient in nonprofit sustainability and leadership. Not all boards of nonprofits are well-run. A poorly run board could even cause the organization’s failure. Whether your nonprofit is just starting out or has been in existence for a while now, ensuring the board’s effectiveness will allow it to overcome obstacles and enjoy long-term success.
The most important task of a nonprofit board is to develop a strategic vision. Nonprofits must select board members who are prepared to invest the time and energy required to accomplish this task. This requires a thorough selection process to identify a mix of diverse backgrounds and experience. It is also crucial to ensure that new and experienced board members receive training and assistance when they collaborate to make decisions at the highest level for the organization.
When the board is given priority for strategic tasks the board should be capable of trusting the executive director to manage the day-to-day operations of the non-profit. Nonprofits should not rely solely on committees of the board to manage operations, as this can result in a lack of accountability and inefficient decision-making.
If a nonprofit board does not have a CEO who is an official, it is often operating under the Cooperative Government Model. This is a democratized model that distributes power equally among the board members. It works best when board members are able to show a similar commitment to the company and the ability to be accountable to each other for their actions. To avoid conflicts of interest, the nonprofit should create a clear policy on conflicts of interests and discuss it with board members regularly.