Nonprofit Governance Models

The quality of governance can have a an impact on the ability of non-profit organizations to accomplish their goals. It’s important for boards to have clear policies, frameworks, systems and structures in place. This will allow them to operate at their highest level.

As the need for effective governance in the non-profit sector grows and so is the importance of selecting a governance model that can be tailored to your particular needs and goals. While there’s no universal governance model, many nonprofits evolve towards a more hybrid approach as they expand and realize the advantages of each model.

Some examples of nonprofit governance models include the cooperative model, that distributes power equally between board members; the patron governance model that is utilized in nonprofits that focus on fundraising and heavily on the generosity of wealthy donors; and the management team model which acts like a for-profit company with committees in charge of human resources, finances and fundraising, public relations and much more. A board can also choose to establish an advisory committee in addition to its governing board. Advisory boards consist of experts who contribute their expertise and knowledge to the organisation. They often assist in improving its fundraising and public relations efforts and increase its visibility.

In the Advisory Board Model non-profit board members serve as consultants for the CEO, and do not make decisions on their own. In this instance board members from nonprofit organizations are typically paid a wage for their work, however in some instances the position isn’t paid and the CEO is responsible https://mindboardroom.com/board-meeting-preparation/ for all the decision making. In any case it is crucial to establish an effective conflict of interest policy so that possible conflicts are identified and dealt with.