The principal governing body for nonprofits that champions accountability and transparency, the board of directors make the big decisions and determines the goals for the organization. A group of visionary and strategic leaders, the board deliberates on high-level matters and makes consensus-based decisions that are communicated via resolutions. They also delegate their responsibilities to committees that function as departments in companies that are for-profit like the finance committee, planning and fundraising committees, and the public relations committee.

Nonprofit governance models are not able to meet all needs and that is the reason why many organizations use a hybrid model. No matter the model, the board should prioritize its mission and ensure it remains separate from other private parties. Any conflicts of interest that might undermine the credibility or reputation of the nonprofit, or put the donors at risk, must be thoroughly inspected by the board in an explicit conflict of interest policy.

Nonprofits often choose the cooperative governance model, which grants every board member equal voting power and a common level of responsibility. This is a highly democratic model and is most effective when board members are able www.mindboardroom.com/automated-workflow-with-virtual-data-room-software/ to demonstrate their commitment to the mission of the organization. Nevertheless it can be challenging when the board loses focus on its goals or when morale begins to fall. Another common model is the patron governance model, which is more appropriate for organizations that are focused on fundraising campaigns. Patron board members are wealthy individuals who lend the organization their name and utilize their connections in order to solicit funding.