Good governance is vital to the sustainable and effective management of non-profit organizations. However some nonprofit boards do not operate well. In fact, a poorly governed board can cause the organization to fail. If your nonprofit is new or has been operating for a time, making sure that your board functions effectively can aid it in overcoming its challenges and achieve success in the long run.
The most crucial function of a non-profit board is strategic vision development. The nonprofit board must be selected by members who are capable of putting in the time and energy needed for this task. This requires a thorough selection process that will find the ideal mix of backgrounds, skills, and experiences. It’s also crucial to ensure that new and experienced board members receive training and assistance in their efforts to make top-level decisions for the nonprofit.
If the board has a priority for strategic objectives, they should be able trust the executive director with the day-today activities of the non-profit. Nonprofits should not rely solely on the committees of the board for operations. This can cause inefficiency and lack of accountability.
When a nonprofit board doesn’t have an official CEO, it is often operating under the Cooperative Government Model. This is a highly-democratic model that distributes power equally among the board members. It is ideal if the board members demonstrate equal commitment to the organization, and are willing to hold each other accountable for their actions. To minimize conflicts of interests the nonprofit should develop a clear policy on conflicts of interest, and then discuss it regularly with board members.