5 Most Common Nonprofit Governance Models

Nonprofit board governance models or structures refer to how the organization’s systems, guidelines, processes, and framework seamlessly interact to help achieve the organization’s missions. The model also defines the working framework of the organization, including the responsibilities of the board members and whether they’re accountable individually or as an entire organization. 

Nonprofit boards must prioritize the organization’s missions when overseeing and conducting the organization’s affairs. Most board members typically offer to serve the organization based on their willingness and desire to achieve a particular mission or help a humanitarian cause. 

Below are the 5 most common nonprofit board governance models: 

1. Advisory Model 

An advisory board model is one of the traditional methods of governance used by nonprofits. Typically, the top brass or CEO will turn to the advisory board to seek help and advice in running the organization. Members of an advisory board are industry gurus who have the experience and expertise to provide professional services, but at no cost to the organization. 

A nonprofit may form an advisory board in addition to the organization’s usual board. The advisory board members bring their professional skills and talents to the organization. And since they’ve established their authority in the nonprofit industry, they help the organization expand its reach, boost credibility, and elevate its fundraising and public relations efforts. 

2. Cooperative Governance Model 

One of the most democratic governance models, a cooperative model, exists where the nonprofit has no CEO or president to oversee the organization’s activities. Usually, this kind of governance model is put in place just because the law requires the nonprofit to have a board of directors. 

There’s usually no hierarchy, as all members are at the same leadership level, and decision-making is based on consensus. This model calls for each member to be equally responsible, accountable, and committed to the organization’s mission. 

3. Patron Governance Model 

The patron model is somewhat similar to the advisory governance model. The key difference lies in the primary purpose of the board members. Unlike an advisory board model, which is largely concerned with offering advice and expert services, patron board members are primarily tasked with providing financial support. They give their own contributions and use their influence to help the organization pull more funds from the outside. 

Patron board members usually have a great deal of personal wealth and influence in the nonprofit field. Yet still, they have less influence over the CEO than the advisory board members. 

4. Policy Board Model 

Policy board, one of the most common governance models, is a popular governance method used by nonprofits. John Carver developed the model in his book, “Boards That Make a Difference.” 

With this model, the board extends a high level of trust and confidence in the CEO on running the organization. In fact, it delegates and grants most of its authority to the CEO, thereby allowing the CEO to have complete control of the organization. 

While the board may act as second in power, the CEO and the board work together and usually hold regular meetings to get updates on the organization’s progress. 

5. Management Team Model 

The management team model is a well-known governance structure, even with for-profit entities or corporate enterprises. However, instead of recruiting people to be in charge of human resources, fundraising, planning, public relations, and any other area of interest, the board divides itself into department-like committees to oversee those areas.