Commercial and Nonprofit Boards Or Directors
Almost all businesses and nonprofits have directors or boards, the governing bodies that set plans for organizations, assign recognition to employees, and oversee the executive staff. Many nonprofits have advisory boards which offer advice and direction to the executive director or board.
Boards that are nonprofit and commercial have a few commonalities in their path to success. A healthy board requires careful recruitment, orientation and training for new members; focus on building a strong partnership between board and staff; and respect for the time and commitment that board members volunteer to give.
Both kinds of boards play a key role in setting strategic goals and ensuring that the management’s actions are in line with these goals. Both types of boards need to ensure that operating plans are in place; that financial resources are protected and distributed in ways that can achieve long-term and short-term objectives of the organization; and that policies promote ethical and legal compliance.
Non-profit boards typically have more members than for-profit ones, since they represent all stakeholders that are involved in the institution. The college boards typically include 70 or more people that include wealthy parents, wealthy individuals teachers, alumni, and other parents.
Typically the for-profit and non-profit boards meet several times per year to discuss their work and make decisions. They also have their own governing documents which include bylaws, articles of incorporation and descriptions of the responsibilities and responsibilities of the board, committees, and individual directors. Both types of boards develop policies in writing which include guidelines for director autonomy, conflicts of interest and codes of conduct as well as indemnification.
