The board of directors is the principal governing body for non-profits. It advocates accountability and transparency and sets the goals for an organization. The board consists of visionary and strategic leaders who discuss high-level issues and make consensus decisions. These are communicated through resolutions. They also delegate responsibility through committees, which function like departments within for-profit businesses, such as the finance committee or committees for fundraising and planning and public relations committee.
Governance models for nonprofits do not work for all organizations and that is the reason why many organizations use a hybrid model. The board should ensure that it is completely independent of private organizations, regardless of model. Any conflicts of interest that could damage the credibility or reputation of the charity, or put the donors at risk, should be strictly scrutinized by the board in an explicit conflict of interest policy.
Nonprofits opt for the model of cooperative governance, which gives each board member a level of voting and accountability. This is a democratic system, and can be successful when board members are able to demonstrate their dedication to the mission of the organization. However it can be a challenge when the board loses focus on its objectives or when morale begins to fall. Patron governance is another common model. It is a better fit for https://mindboardroom.com/5-most-common-nonprofit-governance-models/ nonprofits that focus on fundraising campaigns. Patron board members are typically wealthy individuals who provide their name to the nonprofit and make use of their connections to solicit money from their networks.
