Commercial and Nonprofit Boards Or Directors
Boards or directors are the governing bodies of almost all businesses and non-profits. They decide on the policies for the organization, give honors to those who carry out these programs, and supervise the executive staff. Many nonprofits also have advisory boards that provide guidance or advice to the director and executive.
Commercial and nonprofit boards share certain commonalities on the way to success. Healthy boards require careful recruitment, training and orientation of new members. They also require a partnership between the board and staff.
Both kinds of boards play a key role in setting strategic goals and ensuring that management’s actions align with these goals. Both types of boards need to ensure that there are operating plans in place, and that financial resources as well as allocations are done in a way that helps achieve the long-term and near-term objectives for the organization, and that policies promote conformity with ethical and legal standards.
Non-profit boards typically have more members than for-profit ones, as they represent all stakeholders who have an interest in the institution. This usually results in boards of colleges that are independent, for instance having 70 or more members, including teachers, parents staff, alumni and staff members are on the board along with wealthy individuals.
Boards of both types generally meet at least once a year to discuss their operations and make important decisions. They also have their own governing documents which include articles of incorporation, bylaws and descriptions of the duties and duties of the board, committees, and individual directors. The two types of boards create written policies, including those on director autonomy, conflicts of interest and codes of conduct as well as indemnification.