Governance quality has a major influence on the capacity of non-profits to achieve their missions. This is why it’s important that boards have clear guidelines, systems, and frameworks that let them function at their peak.
As the need for strong governance for nonprofits increases, it is important to choose a model of governance that can meet your organization’s specific goals and needs. There isn’t a universally applicable all governance model. However as nonprofits grow and gain the benefits of various models, they usually opt for a hybrid model.
Some examples of nonprofit governance models include the cooperative model, which distributes power evenly among board members as well as the patron governance model, which is implemented in non-profit organizations that are focused on fundraising and heavily on the generosity of wealthy individuals; and the management team model, which functions as a for-profit company with committees that are responsible for human resources, finances fundraising, public relations, and more. A board can also decide to create an advisory council in addition to its governance board. Advisory boards are composed of experts in their field who bring their expertise and expertise to the organization and often assist in boosting its image and boost its fundraising and public relations efforts.
In the Advisory Board Model non-profit board members serve as consultants for the CEO and are not able to make decisions independently. In this case the members of non-profit boards are usually paid a salary for their work, however in some instances, the position is not compensated and the CEO does all the decision making. In either situation, it’s essential to develop a strong conflict of interest policy so that potential conflicts are identified and dealt with.
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