Nonprofit Governance Models

The board of directors is the main governing body for nonprofits. It is a champion of accountability and transparency and defines the goals of an organization. A group of strategic and visionary leaders, the board of directors deliberates on high-level matters and makes consensus-based decisions that are communicated via resolutions. They also delegate their responsibilities through committees that function similar to departments within for-profit corporations, such as a finance committee and fundraising committee, planning committee and public relations committee.

Governance models for non-profit organizations aren’t universally applicable, which is www.mindboardroom.com/board-meeting-preparation/ why the majority of organizations eventually adopt an approach that is hybrid. Regardless of the model, the board should prioritize its mission and ensure it is completely independent of other private parties. The board should scrutinize any conflicts of interest that could undermine the credibility the organization or its reputation, or put donors at risk. This is done through the implementation of a policy on conflicts of interest.

Nonprofits usually opt for the model of cooperative governance, which grants every board member equal voting power and a level of responsibility. This is a democratic model and is most effective when board members can demonstrate their commitment to the goals of the organization. It can be challenging, however, when the board loses focus on its goals or if morale of the board members declines. Another popular model is the patron governance model which is more appropriate for organizations that are focused on fundraising campaigns. Patron board members are wealthy people who lend the nonprofit their name and use their connections in order to solicit funding.