Directors or boards are the governing bodies of nearly all businesses and non-profits. They create the plans for the organization, grant the individuals who execute these plans, and oversee the executive staff. Many non-profits have advisory board members that offer advice and direction to the executive director or board.
Boards that are nonprofit and commercial have a few similarities in their path to success. Healthy boards require the careful recruitment, training and orientation of new members. They also require a partnership between board members and staff.
A key role for both types of boards is establishing strategic goals and making sure that management’s actions coincide with those goals. Both types of boards need to make sure that there are operating plans in place, and that financial resources as well as allocations are made in a manner that meets near- and long term objectives for the organization, and that policies promote the compliance with ethical and legal standards.
Non-profit boards are usually larger than those of for-profit companies, as they have to represent all constituents that have a stake in the institution’s operations. The boards of independent colleges typically comprise 70 or more members which includes wealthy individuals, parents, teachers and alumni.
Non-profit and for-profit boards typically meet several times a year to discuss their operations and make crucial decisions. They also have their own governing documents which include articles of incorporation, bylaws and descriptions of the responsibilities and duties of the board, committees, and individual directors. Both kinds of boards will develop written policies, including those regarding director independence, conflicts of interest, codes of conduct, confidentiality and indemnification.
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