Governance models for nonprofits provide frameworks that distribute power and make decisions within the framework of a nonprofit. They connect the board to the stakeholders and constituents of the organization and help create joint ownership, empowerment and accountability.
Unfortunately, the media often focuses on bad or ineffective board governance, and this shady scrutiny can discourage potential board members from taking up the boards of directors of nonprofit organizations. With the fact that board positions for nonprofit organizations generally aren’t paid and come with annual giving requirements It’s no wonder that the nonprofit sector is struggling to recruit great board members and keep them on board.
Traditional governance models – which largely stem from corporate models and outdated top-down command and management paradigms continue to dominate the nonprofit sector and are often able to separate the board, stakeholders and communities from the work of the organisation and hamper effective accountability and governance. The key to addressing this issue is to ensure that nonprofit governance models are constructed and used in ways that encourage good governance and improve community-based impact.
Many nonprofit organizations will start with a basic governance model, like Carver’s model of a policy board, and then implement one or more governance models to better suit the specific needs of their organization. For instance, some organizations are likely to establish a leadership committee to assist with fundraising and other responsibilities and other organizations may need a model for managing team governance to ensure compliance with regulatory requirements. A common trend is to form committees to tackle things like nominations and governance as well as risk and finance or executive decisions.
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