Key Governance Structures in Nonprofits

Nonprofit organizations typically adopt one of several governance structures, each with its own characteristics and benefits. Here are some key governance structures commonly found in nonprofits:
Management by Board with Executive Director/CEO (Operating Board): In this model, the board of directors works closely with an Executive Director or CEO who manages the day-to-day operations of the nonprofit.
Management by CEO with Advisory Board: In this structure, the CEO manages the organization while the board serves in an advisory capacity.
Non-management Structure: This model is less common and is typically used by smaller nonprofits or those in their early stages. This is the most democratic of nonprofits. The board and staff are all volunteers, with one person often serving as a co-chair or chairperson of the Board to coordinate operations.
In this structure, everyone has an equal voice in how decisions should be made – you may have conflicts between members about what’s most important for your organization!
The upside? You’re able to take things “one day at a time” without having to worry too much about long-term strategy because it’s not necessary when there isn’t someone else looking over your shoulder telling you what needs to get done first! It can also work well if only two people are working on day-to-day operations.
But this is also the downside of this structure. Non-management organizations tend to lack vision, direction and growth, keeping nonprofits small and less well funded with less social impact.
Voluntary Board Model: This is the most common type of model where board members often work within the community. Paid employees and volunteers provide the labor for the nonprofit.
Advisory Board Model: Some nonprofits begin with one person who becomes the CEO or executive director. Nonprofits must have a board to qualify for nonprofit status.
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.
Patron Governance Model: In this model, patrons (donors or influential individuals) play a significant role in the governance of the organization.
Policy Board Model: The board focuses on high-level policy-making while the management team handles the day-to-day operations.
Management Team Model: The management team plays a significant role in the governance of the organization, often working in tandem with the board.
The choice of governance structure depends largely on the nonprofit’s mission, size, and organizational culture. Each structure has its own strengths and weaknesses, and the most effective structure for a particular nonprofit will depend on its unique circumstances.