The most important governing body in non-profits, which promotes accountability and transparency, the board of directors make the big decisions and determines the goals for the organization. The board consists of visionary and strategic leaders who deliberate on high-level issues and reach consensus on decisions. These are communicated via resolutions. They also delegate responsibilities through explanation committees, which function as departments in for-profit organizations including the finance committee as well as the committees for fundraising and planning and the public relations committee.
Nonprofit governance models are not the same for all organizations, which is why most organizations eventually move toward an approach that is hybrid. The board must ensure it is not influenced by other private organizations, regardless of model. Any conflicts of interest which could harm the credibility or reputation of the organization, or put the donors at risk, must be thoroughly inspected by the board in an explicit conflict of interest policy.
Nonprofits usually opt for the cooperative governance model, which grants each board member equal voting power and a common level of responsibility. This is a democratic approach and is efficient if the board members demonstrate their dedication to the mission of the organization. However it can be challenging when the board fails to keep its focus on its objectives, or if morale begins to fall. Patron governance is a different model. It is better suited for nonprofits focused on fundraising campaigns. Patron board members are wealthy people who lend the nonprofit their name and use their connections to raise funds.
