Nonprofit Governance Models
Board members of nonprofits have many responsibilities. But governance is among the most important. It is responsible for ensuring that the charity abides by the law, implements prudent financial management guidelines, and stays on track to achieve its goals. In contrast to for-profit businesses nobody owns charitable organisations, and nonprofits rely on volunteer boards to govern them effectively and ensure they are financially viable for the long-term.
Non-profit organizations use a variety of models of governance for their boards, and some may blend some of them to suit their specific needs. The right model is vital to creating a solid board. It can help the organization remain focused on its goal and build a culture of accountability, transparency and ingenuity.
The Management Team Model is the most popular board governance for non-profit organizations. In this model, the board assigns tasks to committees and staff members delegated which cover a variety of duties like human resources, finance planning, human resources, and programs. However, the board retains a leadership role in terms of appointing and managing the Executive Director.
A Patron Board Model is another popular model. This type of board is comprised of a substantial number of wealthy donors who form the board. They have a high level of confidence and trust in the CEO to run the business. The board is not involved in day-today activities but they do meet regularly to make sure that the CEO is updated on the company’s activities.