Good governance is a crucial component of sustainability and leadership. However some nonprofit boards do not operate well. In fact, a poorly managed board can cause the company to fail. If your organization is new or has been around a long time, making sure your board is functioning effectively can aid in overcoming obstacles and be successful in the long term.
The most important task of a nonprofit’s board is to develop a strategic plan. Nonprofits need to select board members that are willing and capable of putting in the time and energy required to accomplish this task. This requires a thorough selection process that will find the right mix of diverse backgrounds, skills and knowledge. It is essential to provide training and support to both new and veteran members of the board as they collaborate and make top-level decisions for the nonprofit.
When the board prioritizes the important tasks of the organization, they must be able to trust the executive director to manage the day-today operations for the non-profit. Nonprofits shouldn’t rely entirely on board committees for the day-to-day operations, since this could result in unreliable and inefficient decision-making.
If a mindboardroom.com non-profit board doesn’t have an official CEO, it typically operates using the Cooperative Governance Model. This is a democratized model that distributes power evenly among board members. It is recommended that board members have a similar commitment to the organization and are willing to be accountable for their actions. To reduce conflicts of interest, the nonprofit should develop a clearly written conflict of interest policy and review it regularly with the board members.
