Nonprofit Governance Models

The board of directors is the principal oversight body for non-profits. It is a champion of accountability and transparency as well as sets the goals of the organization. The board is made up of strategic and visionary leaders who deliberate on high-level issues and make consensus decisions. These are communicated through resolutions. They also assign responsibility to committees that function in the same way as departments in for-profit corporations like a finance committee or fundraising committee, planning committee, and public relations committee.

Governance models for non-profit organizations aren't an exact fit for every situation, which is the reason most organizations eventually shift to an approach that is hybrid. The board must ensure it is completely independent of private organizations, regardless of model. The board should strictly review any conflicts of interests that could harm the credibility of the nonprofit or its reputation, or put donors at risk. This is accomplished through the use of a conflict-of-interest policy.

Nonprofits prefer the model of cooperative governance, which gives each board member equal levels of responsibility and voting power. This is a highly democratic approach, and it is effective when board members are able to demonstrate their commitment to the mission of the organization. However, it can be difficult when the board is unable to focus on its goals or when morale begins to decline. Patron governance is another common model. It is more suitable for nonprofits focused on fundraising campaigns. Patron board members are wealthy individuals who lend the organization their name and use their connections to solicit funding.

דילוג לתוכן