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We interviewed 21 board chairs of nonprofits with social missions to ask how their organizations assess performance when they cannot adequately track the intangible work by employees or the outcomes of this work. We find that the uncertainty around tracking performance data makes boards skeptical of their ability to assess performance in these organizations. Our study suggests that the skepticism of these boards inspires effective strategies focused on decreasing uncertainty around performance. These strategies include tracking a combination of quantified data, process data, and narratives from employees and clients, and ensuring specific board processes that foster a psychologically safe environment for discussion and checking against cognitive biases. We find boards in these organizations to be aware, engaged, and effective at assessing performance and we suggest that policy makers can be better informed by accessing the knowledge and strategy used by these boards. [ABSTRACT FROM AUTHOR]

Research Question/Issue: The Power‐Structure Model of Non‐Profit Governance provides an understanding of the types of power exhibited by different stakeholders in nonprofit organizations. Research Findings/Insights: This qualitative study involved 21 semistructured interviews with board chairs of socially focused nonprofits. A grounded theory‐based approach was used to code extracted data into grouped concepts and to develop the model. Findings from the study indicate that (1) the reward and legitimate power of funders trumps almost all the other types of power in a nonprofit organization, (2) a board's legitimate power over management cannot surmount management's informational power, and (3) there may be a power struggle between the board chair's informational/referent power and the board members' expert/referent power. Theoretical/Academic Implications: The Power‐Structure Model of Non‐Profit Governance, which was conceived using theory and qualitative data, incorporates French and Raven's (1959) five types of social power to outline the power structure of nonprofits and how it differs from the traditional organizational structure. The model offers new perspectives on researching power and decision making in organizations and how appropriate governance can help to reduce power asymmetry between the CEO and the board. Practitioner/Policy Implications: The Power‐Structure Model of Non‐Profit Governance offers insight for policy makers into the types of power available to different actors in organizations, how they use this power, and how this power structure plays out in various organizations. [ABSTRACT FROM AUTHOR]