A good governance system is essential to the sustainable and effective management of non-profit organizations. Not all boards of nonprofits are well-run. In fact, a poorly managed board can cause the organization to fail. It doesn’t matter if your organization is beginning its journey or has been in existence for a while, ensuring your board’s efficiency can help it weather challenges and achieve long-term success.
The most important task of a nonprofit board is strategic vision development. The board should be comprised of people who are prepared to invest the time and effort required to accomplish this task. This requires a careful selection process to identify a mix of diverse backgrounds and experience. It is essential to provide training and support to both new and experienced members of the board when they work together and make the top-level decisions for the nonprofit.
If the board has a strategy for tasks, it should be in a position to trust the executive director to handle the day-to-day operations of the nonprofit. Nonprofits shouldn’t rely entirely on the board committees to handle operational duties. This could result in inefficiency and a lack of accountability.
If a board of a non-profit organization does not have an official CEO, it usually is run by the Cooperative Governance Model. It is a democratic model that distributes power equally among board members. It is best if the board members demonstrate equal dedication to the organization and are willing to hold each other responsible for their actions. To avoid conflicts of interests the non-profit should draft an appropriate policy regarding conflicts of interest, and then discuss it with board members regularly.
