The board of directors is the principal oversight body for non-profits. It promotes accountability and transparency, and sets the goals for an organization. A group of visionary and strategic leaders, the board of directors deliberates on the most important issues and takes consensus-based decisions that are communicated via resolutions. They also delegate their responsibilities through committees that function in the same way as departments of for-profit companies, like a finance committee planning committee, fundraising committee, and public relations committee.

Nonprofit governance models are not able to suit all and that is the reason why many organizations choose to adopt a hybrid model. No matter what model is used the board should prioritize its mission and ensure that it remains separate from https://mindboardroom.com/board-meeting-preparation/ other private parties. The board should scrutinize any conflicts of interest which could damage the credibility of the organization or its reputation, or put donors at risk. This is done by implementing a conflict-of-interest policy.

Nonprofits typically opt for the model of cooperative governance, which gives every board member equal voting power and a common level of responsibility. This is a very democratic system and can be effective if the board members are able show their dedication to the mission of the organization. Nevertheless it can be a challenge when the board loses focus on its goals or when morale starts to fall. Another popular model is the patron governance model, which is better suited to nonprofits that focus on fundraising campaigns. Patron board members are wealthy individuals who lend the organization their name and utilize their connections to solicit donations.