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Nonprofit Governance Models

Governance quality has an enormous impact on the ability of non-profits to accomplish their goals. It is vital that boards have clear policies, frameworks, systems and structures in place. This will allow them to perform at their best.

As the need for strong nonprofit governance grows It is vital to choose a model for governance that is able to meet your organization’s specific goals and requirements. While there is no one-size-fits-all governance model, many nonprofits shift towards a more hybrid approach as they grow and experience the advantages of each model.

A few examples of nonprofit governance models include the cooperative model, which allocates power equally among board members; the patron governance model that is utilized in nonprofits that focus on fundraising and heavily on the generosity click now of wealthy donors; and the management team model which acts like a for-profit company with committees responsible for finances, human resources as well as fundraising, public relations and many more. The board can also opt to create an advisory board in addition to their executive board. Advisory boards consist of experts in their fields who bring their professional skills and expertise to the organization and frequently help improve its standing and enhance its public relations and fundraising efforts.

In the Advisory Board Model, non-profit board members are consultants to the CEO and cannot make decisions independently. In this case the members of non-profit boards receive compensation for their services, but the CEO still has the power to make all decisions. In either case, it is important to create a strong policy on conflicts of interest to ensure that any potential conflicts are able to be identified and resolved.

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