Good governance is an essential ingredient in nonprofit sustainability and leadership. Not all nonprofit boards are well-run. A poorly run board could even cause the organization’s failure. If your non-profit is just starting out or has been operating for a while now, ensuring the effectiveness of your board will help it overcome challenges and achieve long-term success.
The most crucial function of a nonprofit board is the development of a strategic vision. Nonprofits have to choose board members who are willing and able to devote the time and effort required to complete this task. This requires a careful selection process to identify a mix of different backgrounds and skills. It is crucial to provide training and support for both the new and seasoned members of the board when they work together and make high-level decision for the nonprofit.
When the board is given priority for strategic tasks, it should be capable of trusting the mindboardroom.com executive director with the daily operations of the nonprofit. Nonprofits shouldn’t depend solely on the board committees for tasks related to operations. This could cause inefficiency and lack of accountability.
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 highly-democratic model that allocates power between board members. It is most effective when board members show equal commitment to the company and a willingness to make each other accountable for their actions. To minimize conflicts of interests the non-profit should draft a well-written policy on conflict of interest and review it with board members on a regular basis.