Governance quality has a major influence on the capacity of non-profits to accomplish their goals. It is crucial that boards have clear policies, frameworks and systems and structures in place. This will allow them to perform at their best.
As the need for solid nonprofit governance grows It is vital to choose a model of governance that can meet your organization’s specific goals and needs. There isn’t a universal governance model, many organizations shift toward a hybrid approach as they grow and experience the advantages of each model.
A few examples of nonprofit governance models include the cooperative model, which distributes power evenly among board members as well as the patron governance model that is utilized in nonprofits that concentrate on fundraising and heavily on the generosity of wealthy donors; and the management team model, which acts like a for-profit corporation with committees in charge of human resources, finances, fundraising, public relations and many more. A board can also choose to create an advisory board in addition to their governing board. Advisory boards are comprised of experts who contribute their expertise and experience to the organization. They usually assist in improving its fundraising and public relation efforts and improve its image.
In the Advisory Board Model non-profit board member are consultants for the CEO, and do not take decisions on their own. In this situation, nonprofit board members receive an income in exchange for their services. However, the CEO is still able to make all the decisions. In either situation it is vital to formulate a strong conflict of interest policy to ensure that possible conflicts can be identified and handled.
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