31 Ago Commercial and Nonprofit Boards Or Directors
Directors or Boards are the governing bodies of almost all non-profits and businesses. They establish the plans for the organization, give recognition to those who implement these plans, and oversee the executive staff. Many non-profits have advisory boards that provide advice and guidance to the executive director or board.
Boards of both types share some commonalities in their approach to success. A healthy board requires careful recruitment, orientation and training for new members; attention to creating a real collaboration between staff and board; and respect for the time and dedication required by board members who volunteer.
Both types of boards have the responsibility of setting strategic goals and making sure that the management’s actions meet these goals. Both types of boards must ensure there are operating plans, that financial resources and allocations are made in a manner that is consistent with short- and long-term objectives for the organization, and that policies promote the compliance with ethical and legal standards.
Nonprofit boards are generally bigger than those of for-profit corporations, because they have to represent all the stakeholders that have a a stake in the institution’s activities. This usually results in boards of independent colleges, for example having 70 or more members including parents, teachers staff, alumni and faculty are on the board along with wealthy individuals.
Both for-profit and non-profit boards typically meet regularly throughout the year to discuss operations and make important decisions. They also have governing documents that contain articles of incorporation, bylaws and descriptions of the duties and duties of the board, committees, and individual directors. Both types of boards will develop policies in writing including those on director autonomy, conflicts of interest code of conduct, and indemnification.