Nonprofit Governance Models
Governance quality has an important impact on the ability of non-profits to accomplish their goals. It’s important for boards to have clear policies, frameworks and systems and structures in place. This will enable them to operate at their best.
As the need for a strong governance in the nonprofit sector increases and so does the importance of deciding on a model of governance that will meet your specific goals and needs. While there isn’t a one-size-fits-all governance model, many nonprofits shift towards a more hybrid approach as they expand and realize the advantages of each model.
Some examples of governance models include the cooperative model, that distributes power equally between board members as well as the patron governance model that is utilized in nonprofits that concentrate on fundraising and heavily on the generosity of wealthy individuals and the management team model, which functions as a for-profit company with committees responsible for human resources, finances, fundraising, public relations and many more. Boards can also decide to create an advisory board in addition to their governing board. Advisory boards are comprised of experts in their fields who bring their professional skills and talents to the organization and often help to improve its reputation and elevate its fundraising and public relations efforts.
In the Advisory Board Model non-profit board members serve as consultants for the CEO and they are not able to take decisions on their own. In this situation board members from nonprofit organizations are often paid a salary for their service, although in some cases the position isn’t paid and the CEO performs all the decision making. In either case it is essential to establish a clear policy on conflicts of interest to ensure that any possible conflicts can be identified and addressed.