The quality of governance has the potential to have significant impact on the ability of non-profit organizations to accomplish their missions. It’s important for boards to have clear policies, frameworks, systems and structures in place. This will allow them to perform at their highest level.
As the need for strong governance in the nonprofit sector increases, so is the importance of choosing a model of governance that will accommodate your unique requirements and goals. There isn’t one size fits all governance model. However as nonprofits grow and learn the benefits of various models, they usually opt for a hybrid approach.
Examples of models for governance in nonprofits are the cooperative model that shares power equally among board members and patron governance models which is implemented by nonprofits which focus on fundraising and heavily rely on the generosity of wealthy individuals, and the management team that functions like a for profit corporation with committees in charge of finances, human resources, fundraising, public relations, and many more. The board can also opt to form an advisory committee in addition to their the governing board. Advisory boards are comprised of experts in their field who contribute their professional expertise and expertise to the company and frequently help improve its reputation and increase its fundraising and public relations efforts.
In the Advisory Board Model, non-profit board members serve as consultants to the CEO and are not able to make decisions on their own. In this scenario board members from nonprofit organizations are usually paid a salary for their services, but in some instances the position isn’t compensated and the CEO does all the decision making. In any event, it is important to create a strong policy on conflicts of interest so that any potential conflicts can easily be identified and resolved.
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