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Nonprofit Governance Models

The board members of nonprofit organizations wear many hats. However, governance is among the most important. It is responsible for making sure that the charity adheres to the law, implements sound financial management policies and is on track in achieving its goals. Nonprofits are not owned or controlled by a third party like for-profit businesses. They depend on volunteer boards to ensure they are effectively managed and remain financially sustainable over the long term.

Non-profits employ various models for governance of their boards, and some may blend some of them to best suit their needs. The right model is vital to creating a solid board. It can help the organization remain focused on its goals and build a culture of accountability, transparency and innovation.

The Management Team Model is the most popular form of governance for boards in non-profit organizations. In this model, board members assign duties to committees and staff that cover a variety of tasks, including human resources and finance. The board retains its leadership role in hiring and managing the executive director.

Another popular model is the Patron Board Model. This type of board includes an abundance of wealthy donors that act as the board and have a high level of trust and confidence in the CEO of the organization to manage the business. The board is not involved in day-today operations however they meet regularly to ensure that the CEO is keeping them updated on the organization’s www.mindboardroom.com/how-to-host-successful-online-board-meetings/ activities.

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