Nonprofit Governance Models

Board members of non-profit organizations have many responsibilities. However, governance is among the most important. They are accountable for ensuring that the charity abides by the law, has sound financial management policies and is on track to achieve its goals. As opposed to for-profit corporations nobody owns charitable organisations, and nonprofits rely on volunteer boards to run them effectively and ensure that they are financially sustainable for the long-term.

Non-profits have a variety of board governance models. Some may even mix a few to meet their specific needs. The right model to choose is a crucial aspect in creating an effective board. It will help the company stay focused on its mission and create a culture of accountability, transparency and innovation.

The Management Team Model is the most popular model for governance of boards for nonprofits. In this model, the board delegates tasks to staff members and committees which cover a variety of duties like human resources, finance planning, programs, and human resources. The board retains its leadership position when it comes down to hiring and directing the executive director.

Another popular model is the Patron Board Model. This type of board includes a large number of wealthy donors that act as the board and have high levels of trust and confidence in the CEO to run the business. The board does not participate in the day-to-day operations however, they do meet regularly to ensure that the CEO keeps them informed of the business’s progress.

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