The quality of governance has the potential to have an impact on the capacity of non-profit organizations to accomplish their mission. This is why it’s crucial that boards have clear guidelines, systems, and frameworks in place that allow them to function at their peak.
As the need for solid governance in nonprofits grows it is essential to choose a model for governance which can support your organization’s unique goals and needs. There isn’t a one-size-fits all governance model. However as nonprofits grow and realize the advantages of each model, they often opt for a hybrid model.
A few examples of nonprofit governance models include the cooperative model which distributes power equally among board www.mindboardroom.com/board-meeting-preparation/ members and the patron-governed model that is employed in nonprofits that focus on fundraising and heavily on the generosity of wealthy individuals; and the management team model which functions as a for-profit corporation, with committees that are with responsibility for finances, human resources, fundraising, public relations and more. A board can also choose to establish an advisory committee in addition to its governance board. Advisory boards are comprised of experts who bring their expertise and knowledge to the organization. They often help improve its fundraising and public relations efforts and improve its image.
In the Advisory Board Model non-profit board members are consultants to the CEO, and do not make decisions independently. In this situation nonprofit board members earn a salary in exchange for their services. However, the CEO is still able to make all the decisions. In any situation, it’s essential to develop a strong conflict of interest policy to ensure that any possible conflicts are identified and dealt with.