Board members of non-profit organizations wear many hats, but governance is a essential role. It is accountable for ensuring that the charity abides by the law, has solid financial management practices, and stays on track to achieve its goals. As opposed to for-profit corporations the charitable sector is not owned by anyone else. organisations, and nonprofits rely on volunteer boards to run effectively and ensure that they are financially sustainable over the long run.
Non-profit organizations can choose from a variety board governance models. Some may even mix a few to meet their specific needs. The right model to choose is essential to building a strong board. It will help an organization stay focused on their goal and create a culture of integrity, transparency and creativity.
The Management Team Model is the most popular model for governance of boards for non-profit organizations. In this model, board members assign tasks to committees and staff that are responsible for a range of duties, including finance and human resources. However, the board still has the leadership role hiring and directing the Executive Director.
A Patron Board Model is another common model. This type of board has an abundance of wealthy donors that act as the board and have a high level of trust in and confidence in the CEO of the company to manage the company. The board does not take part in the day-to-day operations, but they regularly meet to ensure that the CEO keeps them up-to-date on the activities of the organization.