Directors or Boards are the governing bodies for nearly all businesses and non-profits. They create the plans for the organization, give recognition to those who perform these plans, and oversee the executive staff. Many nonprofits also have advisory boards that provide guidance or advice to the director and executive.
Both nonprofit and commercial boards have a few commonalities on the road to success. Healthy boards require careful recruitment, training and orientation of new members. They also require a find out this here close partnership between board members and staff.
Both kinds of boards play an important role to play in setting strategic goals and ensuring that management’s actions match these goals. Both kinds of boards must ensure that operating plans are in place and that financial resources are protected and distributed in ways that achieve near- and long-term organizational goals; and that policies encourage legal and ethical compliance.
Non-profit boards are typically larger than for-profit ones, since they represent all stakeholders who are interested in the institution. The boards of colleges that are independent usually include 70 or more people that include wealthy parents, wealthy individuals, teachers and alumni.
Typically both nonprofit and for-profit boards meet a few times per year to discuss their business and take decisions. Both types of boards have governing documents which include articles of incorporation and bylaws, along with descriptions of the responsibilities and roles of directors, committees, and the board. Boards of both kinds will develop written policies, including the ones on director independence and conflicts of interests and codes of conduct, confidentiality and indemnification.
