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The board of directors is the principal governing body for non-profits. It promotes accountability and transparency as well as sets the goals for an organization. The board is comprised of strategic and visionary leaders who debate high-level issues and reach consensus on decisions. These are communicated through resolutions. They also assign responsibility to committees that function similar to departments in for-profit corporations, such as a finance department and fundraising committee, planning committee, and public relations committee.
Governance models for non-profit organizations aren’t one-size-fits-all, which is why the majority of organizations eventually adopt a hybrid approach. The board should ensure it is completely independent of private organizations, regardless of model. Any conflicts of interest that could undermine the credibility or reputation of the charity, or put its donors at risk, must be strictly scrutinized by the board using an explicit conflict of interest policy.
Nonprofits prefer the cooperative governance model which gives each board member an equal amount of voting power and responsibility. This is a highly democratic approach, and it can be effective when the board members can demonstrate their dedication to the mission of the organization. However, it can be difficult when the board is unable to focus on its objectives or if morale starts to decline. Patron governance is another common model. It is a better fit for nonprofits that are focused on fundraising campaigns. Patron board members are usually wealthy individuals who give their name to the organization and make use of their connections to solicit donations from their networks.
