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By understanding how each type of board functions, nonprofit Executive Directors and fundraising staff can ensure that their mission is achieved in an effective manner that involves their board members appropriately based on the governance structure of their organization.
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Article from the Growth & Co Blog | Posted on February 9, 2023 by Larissa
Nonprofit organizations rely on their boards of directors to help them achieve their fundraising goals and objectives. Depending on the type of board your nonprofit or charity has, this reliance will look a little different.
The board of directors for a nonprofit organization is often categorized as one of these two options- the operational board and the governance board. Each governance structure has different roles and responsibilities, but they both have a common goal - to ensure that the nonprofit organization is successful.
The operational board focuses on the day-to-day operations of the organization, such as developing policies and procedures, monitoring revenue, building networks, making introductions to donors, and organizing fundraising events. This kind of board often has committees that match management functions (finance committee, fundraising committee, marketing committee, and so on). They can get pretty 'hands on' in the operations of the CEO and staff. An operational board is likely to be more involved in fundraising operations than a governance board is.
Meanwhile, the governance board works towards the long-term success of the organization by setting strategic direction and monitoring progress. They are focused on policy over process- they care more about 'why' things are done at the organization versus 'how' things are done. They also provide guidance on legal matters and financial decisions. This type of board may have temporary ad hok task forces that resolve specific issues and are generally 'hands off' in daily work of the CEO and staff.
Both boards are essential for a nonprofit’s success as they work together to create a strong foundation for growth. By understanding how each type of board functions, nonprofit Executive Directors and fundraising staff can ensure that their mission is achieved in an effective manner that involves their board members appropriately based on the governance structure of their organization.
If you need help determining how to get your board involved in your organization’s fundraising success, check out our Fundraising Training for Board Director’s course!