The main governing body of non-profits that promotes accountability and transparency, the board of directors makes the major decisions and sets the goals for an organization. A group of strategic and visionary leaders, the board of directors deliberates on matters of a high level and makes consensus-based decisions that are communicated through resolutions. They also delegate their responsibilities to committees, which function similar to departments in companies that are https://mindboardroom.com/automated-workflow-with-virtual-data-room-software/ for-profit including the finance committee, committees for fundraising and planning and the public relations committee.
Governance models for nonprofits do not meet all needs this is why a lot of organizations opt for a hybrid approach. No matter the model, the board should prioritize its mission and ensure it is completely independent of other private entities. The board should be able to identify any conflicts of interest that could damage the credibility of the nonprofit or its reputation, or put donors at risk. This is done by implementing an explicit conflict-of-interest policy.
Nonprofits often choose the cooperative governance model, which gives each board member equal voting rights and a shared level responsibility. This is a highly democratic approach and is effective if board members demonstrate their commitment to the organization’s mission. Nevertheless, it can be difficult when the board is unable to focus on its objectives or if morale starts to fall. Another common model is the patron governance model, that is more suitable for non-profits that focus on fundraising campaigns. Patron board members are wealthy individuals who lend the nonprofit their name and use their connections in order to solicit funding.
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