Governance quality has significant influence on the ability of nonprofits to accomplish their goals. This is why it’s important that boards have clear guidelines, systems, and frameworks that allow them to function at their peak.
As the need for strong nonprofit governance grows It is vital to choose a model for governance that is able to meet your organization’s specific goals and needs. While there isn’t a one-size-fits-all governance model, many nonprofits evolve towards a more hybrid approach as they grow and reap the benefits of each model.
Examples of nonprofit governance models are the cooperative model that shares power equally among board members, the patron governance model that is utilized by nonprofits that focus on fundraising and rely heavily on the generosity wealthy individuals, and the management team, which functions like a for profit corporation with committees responsible for finances, human resources, public relations, fundraising, and more. The board can also opt to form an advisory committee in addition to their governing board. Advisory boards are comprised of experts who contribute their expertise and knowledge to an organization. They usually assist in improving its fundraising and public relations efforts and boost its reputation.
In the Advisory Board Model non-profit board member are consultants for the CEO, and do not take decisions independently. In this situation, nonprofit board members are usually paid a salary for their services, but in some cases the position isn’t compensated and the CEO does all the decision-making. In any event, it is important to have a solid policy on conflicts of interests so that any possible conflicts can be identified and dealt with.
