Governance quality has an important impact on the ability of nonprofits to fulfill their mission. This is why it’s crucial that boards have clear guidelines, systems, and frameworks in place that enable them to perform in the best way possible.
As the need for strong governance in nonprofits grows and the need for strong governance increases, it is crucial to select a governance model which can support your organization’s specific goals and needs. There isn’t one size fits all governance model. However as nonprofits expand and realize the advantages of various models, they usually opt for a hybrid approach.
A few examples of governance models include the cooperative model which allocates power equally among board members; the patron governance model that is employed in non-profit organizations that are focused on fundraising and heavily on the generosity of wealthy donors; and the management team model, that functions like a for-profit company with committees with responsibility for human resources, finances, fundraising, public relations and more. The board can also opt to establish an advisory board in addition to their executive board. Advisory boards are made up of experts in their fields who bring their professional skills and expertise to the business and often help boost its standing and enhance its fundraising and public relations efforts.
In https://mindboardroom.com/how-to-host-successful-online-board-meetings/ the Advisory Board Model, non-profit board members are consultants to the CEO, and they do not make decisions independently. In this case the members of non-profit boards receive compensation for their services, but the CEO is still able to make all the decisions. In any situation it is vital to formulate a strong conflict of interest policy to ensure that any potential conflicts are identified and dealt with.