The quality of governance has significant influence on the ability of non-profits to fulfill their mission. It is essential that boards have clear policies, frameworks and systems and structures in place. This will enable them to perform at their highest level.
As the need for effective governance in the non-profit sector grows and so is the importance of choosing a model of governance that will support your organization’s unique requirements and goals. While there’s no universal governance model, many organizations shift towards a hybrid model as they grow and reap the advantages of each model.
Examples of governance models used by nonprofits include the cooperative model, which divides power equally among board members and patron governance models that is employed by non-profits that focus on fundraising, and rely heavily on the generosity of wealthy individuals, and the management team, which operates like a profit-based corporation with committees responsible for finance, human resources and public relations, fundraising, and much more. A board can also choose to form an advisory board in addition to their governing board. Advisory boards are made up of experts who contribute their expertise and experience to an organization. They often help improve its fundraising and public relation efforts, and also boost its reputation.
In the Advisory Board Model, non-profit board members are consultants to the CEO and are not able to make decisions on their own. In this instance, nonprofit board members typically receive a salary for their work, however in some cases the you can try here position isn’t compensated and the CEO does all the decision making. In any event it is essential to establish a clear policy on conflicts of interests to ensure that any possible conflicts can be identified and dealt with.