5 Most Common Nonprofit Governance Models

Every non-profit organization is unique due to its culture and the expectations of its board participants. The combination of personalities shows that no non-profit council is like another one. There will always be debate about what are the most common nonprofit management models today.

What Is the Essence of Non-Profit Organizations?

Boards of directors of non-profit enterprises keep the mission of the organization at the forefront of running the company affairs. Earned funds are used to support the work of the company. As a rule, many members of the board of directors of such organizations are on the board due to their intense passion and commitment.

Board members should take a proactive approach to oversee the company to get rid of problems and legit issues. Nonprofit boards are responsible for fiduciary issues and matters that have been delegated to others. Let’s have a look at the main models for managing nonprofit organizations.

Management Team Model

The management team model is deservedly considered the most common management model for nonprofit organizations. It shows how the organization fulfills its direct responsibilities. Instead of hiring paid staff in charge of human resources, fundraising, finance, planning, the board forms committees to carry out these essential responsibilities.

Patron Control Model

Patron Model Councils are made up of council participants who have personal wealth or significant influence in the field. The main role of board participants in the model is to contribute their money to the company and make use of their network to solicit donations to the company from outside. In addition, board members are characterized by less influence over the CEO or the board than under the advisory model. The key contribution of the board members of the patron of the management model is financial support.

Policy Council Model

The board of directors gives the CEO a high level of confidence and trust. The Board meets regularly with the CEO to keep up-to-date on the activities of the organization. Moreover, board participants have to show commitment to the enterprise and be willing to expand their knowledge and abilities concerning the company. It can be combined with other types to create a more specialized advisory group.

Advisory Board Governance Model

The Advisory Board is a primary resource the CEO can turn to for help and recommendations. A good advisory board can enhance a nonprofit’s reputation and credibility. The advisory board participants are trusted advisors. They provide professional skills and experience for free to the company. At the same time, advisory boards may be formed to assist and advise the board as a whole.

Model of Cooperative Management

This model works best when each board member can demonstrate an equal degree of commitment to the nonprofit. The board of the council makes concerted decisions as a group of peers, designing it as the most democratic governance model. You cannot find any hierarchy here. Simply put, no one person has power over another. According to the model principles, each member has to be equally committed to the company. Besides, he/she has to be prepared to take responsibility for the actions of the entire board.