Nonprofit Governance Models

The board members of nonprofit organizations wear a variety of roles and have a essential responsibility. They are responsible to ensure that the charity abides by laws, has sound financial management practices and remains on track to meet its objectives. Nonprofits are not owned by anyone, unlike for-profit businesses. They depend on volunteer boards to ensure they are effectively run and remain financially sustainable in the long run.

Non-profit organizations can choose from a variety board governance models. Some might even mix several to meet their requirements. Choosing the right model is an important factor in building an effective board. It helps an organization remain focused on their goals and help establish a culture that is based on integrity, transparency and creativity.

The Management Team Model is the most well-known model of governance for non-profit organizations. In this model, the board delegates tasks to committees and delegated staff members that cover a range of responsibilities such as finance, human resources planning, programs, and human resources. However, the board retains the leadership role of hiring and managing the Executive Director.

Another common model is the Patron Board Model. This type of board is comprised of a substantial number of wealthy donors who serve as the board. They have a high degree of trust and confidence in the CEO’s ability and abilities to run the business. The board is not involved in the day-today operations but they do meet regularly to ensure that the CEO is keeping them updated on the company’s activities.

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