Nonprofit Governance Models

The board of directors is the principal governing body for nonprofits. It is a champion of accountability and transparency as well as sets the objectives of an organization. The board is a group of strategic and visionary leaders who discuss high-level issues and make consensus-based decisions. These are communicated via resolutions. They also delegate responsibility through committees that function in the same way as departments of for-profit companies, such as a finance committee fundraising committee, planning committee, and public relations committee.

Governance models for nonprofits do not suit all and that is the reason why many organizations choose to adopt a hybrid model. No matter the model the www.mindboardroom.com/board-meeting-preparation/ board must prioritize its goals and ensure that it remains separate from other private parties. The board should scrutinize any conflicts of interest that could damage the credibility of the organization or its reputation, or put the donors at risk. This is accomplished by an explicit conflict-of-interest policy.

Nonprofits typically opt for the cooperative governance model, which grants each board member equal voting rights and a shared level responsibility. This is a very democratic system, and is effective when board members demonstrate their dedication to the mission of the organization. However it can be a challenge when the board fails to keep its focus on its mission, or if morale begins to fall. Patron governance is another common model. It is a better fit for nonprofits that focus on fundraising campaigns. Patron board members are typically wealthy individuals who lend their name to the nonprofit and leverage their connections to solicit funds from their networks.