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Board members of non-profit organizations wear many hats, but governance is a vital responsibility. It is accountable for ensuring that the charity follows the law, has sound financial management policies, and is on track in achieving its goals. In contrast to for-profit businesses there is no ownership stake in charitable organisations, and nonprofits rely on volunteer boards to manage effectively and ensure that they can sustain their finances in the long term.

Non-profit organizations have a variety of board governance models. Some might even mix several to meet their needs. The choice of the best model is crucial to creating a strong board. It helps an organization stay focused on their goal and establish a culture of integrity, transparency and creativity.

The Management Team Model is the most well-known model of governance for non-profit organizations. In this model, the board assigns tasks to staff members and committees that cover a range of responsibilities such as finance, human resources planning, human resources, and programs. However, the board still has the leadership role of hiring and managing the Executive Director.

Another model that is popular is the Patron Board Model. This type of board has an abundance of wealthy donors who act as the board and have high levels of trust and confidence in the CEO of the business to run the company. The board is not a part of the day-to-day operations however, they meet regularly to ensure that the CEO is keeping them informed on the organization’s activities.