Modern conditions for the activities of nonprofit organizations are complicated by the dynamic development of the external and internal environment of functioning. In this article, we will consider the most common mistakes of the board management of nonprofit companies.

Board governance principles that determine the efficiency of the company`s activity

In the modern nonprofit board governance paradigm, despite the variety of specific formulations, preference is given to the human person, taking into account the processes of globalization and with an emphasis on knowledge management, on a network, partnership principles of interaction. In this regard, the author proposes to use several principles in the management of nonprofit organizations (NPOs):

  • The principle of partnership. The main idea lies in the need to build in a nonprofit organization a system of partnerships with state, and municipal authorities, business structures, the public, and other interested groups of people.
  • The principle of the priority of public interests, which has as its goal the satisfaction of spiritual, cultural, educational, and other moral needs.

The implementation of such principles determines the need to use strategic, innovative, differentiated, and optimization approaches in the management of nonprofit organizations, which will optimize management decisions, improve management efficiency and bring organizations to a new innovative development trajectory.

What are the common nonprofit board governance mistakes?

Not all boards of directors are effective or perform their duties properly. There are many reasons for this. One of the reasons may be that board members are too detached from the company and do not know what is going on, or do not want to take on their responsibilities. So, let`s consider the most frequent nonprofit board governance mistakes.

It is known that fundraising is one of the main activities of the NPO. We have gathered the list of the typical mistakes that everyone makes when raising funds for their idea:

  • NPOs often use too much text and few photos in their appeals, there is no explicit call to action. No visualization of the problem, a simple example: when we read the text, we simply realize that there is a certain problem, and when we look at the picture, we see this problem clearly in all its scales, we do not need more evidence that help is needed. It is important that your audience feel the seriousness of the problem and the need for help.
  • The second rule is inextricably linked with the first. Everything must be done in moderation. It is imperative to talk about the problem, but showing its seriousness, you need to remember that no one will give you money to solve hopeless problems, the sponsor can move away from an unpleasant problem, and we need him to give us the means to get closer to us. Therefore, it is still necessary to create a positive attitude. It is important to say: “Yes, there is a problem, but it has a solution. The situation is not hopeless, and you can help.” Show your donor how the problem can be effectively solved and he will not refuse you.
  • Fundraisers face the challenge of asking for money every day. For some reason, among many nonprofit companies, it is still believed that asking for money is shameful, ten years ago it was generally a scourge. They believe that people should guess for themselves that it would be necessary to donate. Come yourself, give money yourself, and then we will save the world. This is a big mistake.