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Nonprofit Governance Models

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Board members of non-profit organizations wear many hats. However, governance is among the most important. It is responsible for making sure that the charity adheres to the law, has solid financial management policies, and is on track to achieve its goals. As opposed to for-profit corporations nobody owns charitable organizations, and nonprofits depend on volunteer boards that govern them effectively and ensure they are financially sustainable for the long-term.

Non-profit organizations employ a variety of models for board governance, and some blend some of them to best meet their requirements. Choosing the right model is essential to creating a strong board. It can help an organisation stay focused on their mission and create a culture of accountability, transparency and innovation.

The most popular board governance model for nonprofits is the Management Team Model. In this model, the board assigns tasks to committees and staff members delegated who are responsible for a variety of responsibilities such as finance, human resources planning, human resources, and programs. The board continues to exercise its leadership role in hiring and directing the executive director.

A Patron Board Model is another common model. This type of board is comprised of many wealthy donors who act as the board and have a high level of trust and confidence in the CEO of the company to run the business. The board is not a part of the day-to-day operations however they meet regularly to ensure that the CEO is keeping them updated on the company's activities.