Directors or Boards are the governing bodies of almost all non-profits and companies. They create the plans for the company, award recognition to those who perform these packages, and supervise the executive staff. Many nonprofits also have advisory boards that give advice or guidance to the executive director and board.
Both nonprofit and commercial boards have a few similarities on the road to success. Healthy boards require careful recruitment, orientation and training for new members, as well as creating a real partnership between staff and the board and respect for the time and dedication required of board members who volunteer.
The primary function of both types of boards is establishing strategic goals and making sure that management’s actions are in line with the goals. Both types of boards need to ensure that operating plans are in place as well as that financial resources and allocations are made in a manner that meets short- and long-term organizational goals, and that policies encourage compliance with legal and ethical standards.
Nonprofit boards are typically larger than for-profit corporations, because they need to represent all constituents that have 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, alumni and staff serve on them, along with wealthy individuals.
Typically the for-profit and non-profit boards meet several times a year to discuss their business and take decisions. Both kinds of boards have governing documents which comprise articles of incorporation, bylaws, as well as descriptions of the responsibilities and roles of committees, directors and the board. Both kinds of boards will formulate written policies, such as those on director independence and conflicts of interests and codes of conduct. confidentiality and you could try this out indemnification.
