Nonprofit Governance Models
The quality of governance can have significant impact on the capacity of nonprofit organizations to carry out their goals. It’s important for boards to have clear guidelines, frameworks, systems and structures in place. This will allow them to function at their best.
As the need for solid nonprofit governance grows it is essential to choose a model of governance which can support your organization’s specific goals and needs. There isn’t a one-size-fits all governance model. However, as nonprofits grow and learn the benefits of different models, they typically adopt a hybrid model.
Examples of governance models used by nonprofits include the cooperative model that shares power equally among board members and the patron governance model that is utilized by nonprofits that focus on fundraising, and rely heavily upon the generosity of wealthy donors, and the management team, which functions like a for-profit company with committees accountable for finances, human resources, public relations, fundraising, and more. A board can also decide to form an advisory council in addition to its governance board. Advisory boards consist of experts in their fields who contribute their professional expertise and expertise to the organization and frequently help improve its image and boost its public relations and fundraising efforts.
In the Advisory Board Model, non-profit board members are consultants to the CEO and do not make decisions on their own. In this scenario, nonprofit board members receive compensation for their services, however the CEO can still make all the decisions. In any event it is crucial to establish a strict conflict of interests policy so that possible conflicts can be spotted and dealt with.