Nonprofit Governance Models
The quality of governance plays significant influence on the ability of non-profits to accomplish their objectives. It’s important for boards to have clear policies, frameworks, and structures in place. This will enable them to function at their best.
As the need for a strong governance in the nonprofit sector grows and so is the importance of selecting the right governance model to meet your specific needs and goals. There isn’t one size fits all governance model. However, as nonprofits grow and learn the benefits of each model, they often choose to adopt a hybrid model.
Some examples of nonprofit governance models include the cooperative model, which distributes power evenly among board members and patron governance models that is used in non-profit organizations that are focused on fundraising and relies heavily on the generosity of wealthy individuals and the management team model, which functions as a for-profit business with committees in charge of human resources, finances as well as fundraising, public relations and many more. The board can also decide to create an advisory council in addition to its executive board. Advisory boards are composed of experts who contribute their expertise and experience to the organisation. They often assist in improving its fundraising and public relations efforts and boost its reputation.
In the Advisory Board Model, non-profit board members are consultants to the CEO, and they do not make decisions on their own. In this situation, nonprofit board members are often paid a salary for their services, though in some instances the position isn’t compensated and the CEO does all the decision-making. In any event, it’s essential to develop a strong conflict of interest policy to ensure that possible conflicts can be identified and handled.