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Nonprofit Governance Models

Nonprofit Governance Models

Governance quality has an enormous impact on the ability of non-profits to achieve their missions. It is essential that boards have clear policies, frameworks, systems and structures in place. This will allow them to operate at their highest level.

As the need for solid governance in the nonprofit sector grows, so does the importance of deciding on a model of governance that will support your organization’s unique requirements and goals. While there’s no universal governance model, many nonprofits move towards a more hybrid approach as they grow and reap the benefits of each model.

A few examples of governance models include the cooperative model, which distributes power equally among board members and patron governance models that is utilized 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 with responsibility for human resources, finances as well as fundraising, public relations and many more. The board can also opt to establish an advisory board in addition to their executive board. Advisory boards are comprised of experts in their field who bring their expertise and talents to the organization and often help boost its image and boost its fundraising and public relations efforts.

In the Advisory Board Model non-profit board members are consultants to the CEO and do not take decisions on how to host online board meetings their own. In this situation the members of non-profit boards receive compensation for their services, but the CEO is still able to make all decisions. In any event it is crucial to establish a strong conflict of interest policy to ensure that any potential conflicts are identified and dealt with.