Nonprofit Governance Models

Every new nonprofit reaches an age where the founders realize they need more hands, more help and more direction. Many nonprofits form boards of directors at this moment. Not all boards are identical. There are many governance models to ensure that your charity is run properly and achieves its stated goal.

One of the most well-known governance models for nonprofits is the advisory model. This permits the executive director to regularly communicate with an advisory board for suggestions on how to run the nonprofit. The governing board can be the same as or different from the advisory board depending on agreed-upon terms. Another popular model is the model of cooperative governance. It is a democratic structure that shares the power equally among all board members and works best for companies that aren’t required by law to have a CEO.

The Policy Board Model has also become extremely popular. This model of governance was created by John Carver and is a excellent tool for creating policies that management as well as the board must adhere to.

Although all of them are great models, they may not be the right option for your nonprofit. It is common for nonprofits to have one central governance model, and incorporate other models to meet the needs of their organizations. This combination of systems helps your organization to grow and achieve its goals.