Nonprofit Governance Models

The primary governing body in non-profits, which promotes accountability and transparency, the board of directors makes the major decisions and sets the goals for the organization. The board consists of visionary and strategic leaders who debate high-level issues and reach consensus on decisions. These are communicated through resolutions. They also delegate responsibility through committees, which function like departments in for-profit organizations, such as the finance committee and committees for fundraising and planning and the public relations committee.

Governance models for nonprofits do not suit all This is why many organizations adopt a hybrid model. The board must ensure that it is free from other private parties, regardless of the model. Any conflicts of interest which could harm the credibility or reputation of the organization, or put the donors at risk, must be strictly scrutinized by the board in the use of a conflict of interest policy.

Nonprofits tend to choose the model of cooperative governance which grants each board member equal voting rights and a level of responsibility. This is a very democratic model and is effective when board members can demonstrate their commitment to the goals of the organization. However it can be difficult when the board fails to keep its focus on its mission or when morale begins to fall. Another popular model is the patron governance my blog model which is more suited to nonprofits that focus on fundraising campaigns. Patron board members are wealthy people who lend the nonprofit their name and utilize their connections to solicit funding.