Board members of non-profit organizations wear many roles but governance is the most critical responsibility. It is accountable for ensuring that the charity follows laws, adopts sound financial management policies, and is on track to achieve its goals. Nonprofits are not owned or controlled by a third party like for-profit businesses. They rely on volunteers to ensure that they are efficiently run and remain financially sustainable over the long term.

Non-profit organizations can choose from a variety board governance models. Some might even mix a few to suit their needs. Selecting the right model is an important factor in building an effective board. It will allow the company to stay focused on its mission and help establish a culture of transparency, accountability and innovation.

The most popular board governance model for nonprofits is the Management Team Model. In this model, the board delegates tasks to committees and delegated staff members who are responsible for a variety of responsibilities such as finance, human resources planning, human resources, and programs. However, the board maintains a leadership role in terms of appointing and managing the Executive Director.

Another model that is popular is the Patron Board Model. This kind of board is made up of a substantial number of wealthy donors who form the board. They have a mindboardroom.com high degree of confidence and trust in the CEO to run the business. The board is not involved in day-to-day operations however they meet regularly to ensure that the CEO keeps them informed of the organization’s activities.