Nonprofit Governance Models

Every new nonprofit reaches a point where the founders realize they need more hands, more help and more direction. This is when many set up boards of directors. But not all boards work in the same way. In fact, there are a wide spectrum of governance models that can be employed to ensure that your charitable organization is running properly and serves its stated purpose.

One of the most popular models of governance for nonprofits is an advisory model. This permits the executive director to meet regularly with an advisory board for advice on how to run the non-profit. The governing board may be different than the advisory board depending on the conditions agreed upon. Another popular model is the cooperative governance model. It is a democratic system that distributes power equally among all board members. It is best for companies that aren’t legally required to have a CEO.

The Policy Board Model is also very popular. It was developed by John Carver, this governance model is an excellent method for creating policies that management and board must adhere to.

While all of these are great models, they might not be the perfect option for your nonprofit. Fortunately, it’s typical for nonprofits to employ one central governance model and add other models to meet the unique needs of their organizations. This makes for a powerful combination of systems that help your organization grow and reach its goals.