Nonprofit Governance Models

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The principal governing body for nonprofits that champions accountability and transparency The board of directors takes the major decisions and sets the goals for an organization. A group of strategic and visionary leaders, the board of directors deliberates on matters of a high level and makes consensus decisions that are communicated via resolutions. They also delegate responsibility to committees that function similarly to departments within for-profit corporations, for example, a finance committee fundraising committee, planning committee, and public relations committee.
Governance models for nonprofits aren’t one-size-fits-all, which is why most organizations eventually shift to an approach that is hybrid. Regardless of the model the board must prioritize its purpose and ensure that it is completely independent of other private entities. The board should be able to identify any conflicts of interests that could undermine the credibility of the organization or its reputation, or put donors at risk. This is done by implementing a conflict-of-interest policy.
Nonprofits often choose the cooperative governance model, which gives every board member equal voting rights and a common level of responsibility. This is a democratic model that can be efficient if the board members can demonstrate their commitment to the organization’s mission. However it can be difficult when the board loses focus on its mission or when morale begins to fall. Patron governance is another common model. It is more suitable for nonprofits that focus on fundraising campaigns. Patron board members are wealthy individuals who lend the organization their name and utilize their connections to solicit donations.
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