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 governed board can cause an organization to fail. If your non-profit is just beginning or has been around for a time, making sure that your board works effectively will aid in overcoming obstacles and make progress over the long haul.
The most important role of a board member for a non-profit organization is to develop an overall strategy. Nonprofits should select board members who are prepared to invest the time and effort for this task. This requires a comprehensive selection process that will find the ideal mix of backgrounds, skills and experience. It’s also important to explanation ensure that both new and veteran board members receive training and assistance in their efforts to make decisions at the highest level for the non-profit.
When the board puts a high priority on important tasks of the organization, they must be able trust the executive director to oversee the day-today operations for the non-profit. Nonprofits should not rely solely on committees of the board to manage the day-to-day operations, since this can result in an absence of accountability and inefficient decision-making.
When a nonprofit board does not have an official CEO, it often operates under the Cooperative Governance Model. It is a democratic model that shares power equally between 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 reduce conflicts of interest the non-profit should draft an effective policy on conflicts of interest, and then discuss it with board members on a regular basis.