Governance quality has an enormous impact on the ability of non-profits to accomplish their objectives. It’s important for boards to have clear policies, frameworks and systems and structures in place. This will enable them to operate at their highest level.
As the need for strong governance for nonprofits increases it is essential to choose a model for governance that will meet your organization’s particular goals and requirements. While there is no one-size-fits-all governance model, many organizations shift toward a hybrid approach as they expand and realize the advantages of each model.
Examples of nonprofit governance models are the cooperative model which distributes power evenly among board members and patron governance models that is utilized by nonprofits that focus on fundraising, and rely heavily on the generosity of wealthy individuals, as well as the management team which functions like a profit-based corporation with committees that are responsible for human resources, finances and fundraising, public relations, and many other aspects. The board can also opt to form an advisory board in addition to their governing board. Advisory boards consist of experts in their fields who bring their professional skills and expertise 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 member are consultants for the CEO and do not make decisions independently. In this model the members of non-profit boards receive an income in exchange for their services, however the CEO still has the power to make all decisions. In either situation it is essential to create a strict conflict of interests policy to ensure that any possible conflicts are identified and dealt with.
