Governance quality has an enormous impact on the ability of non-profits to accomplish their goals. This is why it’s important that boards have clear guidelines, systems, and frameworks that let them function at their peak.
As the need for effective governance in the nonprofit sector grows and so is the importance of choosing an appropriate governance model that can be tailored to your particular needs and objectives. While there’s no universal governance model, many nonprofits evolve towards a hybrid model as they grow and experience the advantages of each model.
A few examples of nonprofit governance models include the cooperative model, which distributes power equally among board members and patron governance models that is employed in nonprofits that focus on fundraising and relies heavily on the generosity of wealthy individuals; and the management team model that functions like a for-profit corporation with committees that are responsible for human resources, finances, fundraising, public relations and more. The board can also decide to establish an advisory council in addition to its governance board. Advisory boards are composed 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 case, nonprofit board members receive a salary in exchange virtual data room software for their services, though the CEO can still make all the decisions. In either case it is essential to have a solid policy on conflict of interest so that any potential conflicts can be identified and dealt with.
