Good governance is a crucial element in the sustainability of nonprofits and leadership. Not all boards of nonprofits are well-run. In fact, a poorly managed board can cause the organization to fail. If your non-profit is just beginning or has been around for a time, making sure that your board is in good working order can help it overcome challenges and be successful in the long term.
The most important function of a non-profit board is to develop a strategic vision. Board members should be chosen by nonprofits who are willing to invest the time and effort to accomplish this mission. This is a lengthy selection process to find a mix of diverse backgrounds and knowledge. It is important to provide education and support for both the new and experienced members of the board when they collaborate and make top-level decisions for the non-profit.
If the board is able to prioritize strategic objectives, they should be able to trust the executive director to manage the day-today operations for the non-profit. Nonprofits should avoid relying entirely on board committees to perform operational duties, as this can result in an absence of accountability and inefficient decision making.
If a non-profit board is not governed by an official CEO, it often operates using the Cooperative Governance Model. This is a model that is highly democratic that allocates power between the board members. It is most effective when board members show a similar commitment to the organization as well as an ability to make each other accountable for their actions. To avoid conflicts of interest the nonprofit must develop an appropriate policy regarding conflicts of interest and review it regularly with board members.