The quality of governance has the potential to have an impact on the capacity of non-profit organizations to accomplish their objectives. It is essential that boards have clear policies, frameworks and systems and structures in place. This will enable them to function at their highest level.
As the need for strong governance in the non-profit sector grows as is the importance of choosing the right governance model to be tailored to your particular needs and goals. There isn’t a universal governance model, many nonprofits move toward a hybrid approach as they grow and discover the benefits of each model.
Some examples of nonprofit governance models include the cooperative model, which distributes power equally among board members and the patron-governed model, which is implemented in nonprofits that concentrate on fundraising and heavily on the generosity of wealthy individuals; and the management team model that functions like a for-profit business with committees in charge of finances, human resources and fundraising, public relations and much more. A board may also decide to establish an advisory board in addition to their executive board. Advisory boards are comprised of experts in their field who bring their professional skills and talents to the organization and often help boost its image and boost its public relations and fundraising efforts.
In the Advisory Board Model, non-profit board members are consultants to the CEO and are not able to make decisions independently. In this case the board members of nonprofit organizations are usually paid a salary for their service, although in some instances, the position is not paid and the CEO is responsible for all the decision making. In either situation it is crucial to establish a strong conflict of interest policy to ensure that possible conflicts are identified and dealt with.
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