Nonprofit Governance Models
Board members of non-profit organizations are able to wear a variety of you can try these out hats. However, governance is among the most important. It is accountable for ensuring that the charity is in compliance with laws, has sound financial management policies and remains on track to meet its objectives. Unlike for-profit companies there is no ownership stake in charitable organizations, and non-profits rely on volunteer boards to run effectively and ensure that they are financially viable in the long run.
Non-profits use various models for governance of their boards, and some may blend a few of these to suit their specific requirements. The right model to choose is a crucial aspect in creating a strong board. It will help the company remain focused on its goal and establish a culture that is based on accountability, transparency and ingenuity.
The Management Team Model is the most popular form of governance for boards in nonprofits. In this model, board members assign tasks to staff and committees that cover a variety of tasks, including finance and human resources. The board continues to exercise its leadership responsibility when it comes to hiring and managing the executive director.
Another model that is popular is the Patron Board Model. This type of board includes an abundance of wealthy donors that act as the board and have high levels of trust in and confidence in the CEO of the organization to manage the business. The board is not involved in the day-today operations however they meet regularly to ensure that the CEO is keeping them informed of the organization’s activities.