Directors or Boards are the governing bodies of almost all non-profits and businesses. They set the plans for the organization, give recognition to those who implement these packages, and supervise the executive staff. Many non-profits have advisory board members that provide advice and guidance to the executive director or board.
Both commercial and nonprofit boards have a few commonalities in their approach to success. Healthy boards require careful recruitment, training and orientation of new members. They also require a close partnership between the board and staff.
The main function for both types of boards is setting strategic goals and ensuring that management’s actions align with those goals. Both types of boards must make sure that there are operating plans, that financial resources and allocations are done in a way that achieves both long- and short-term objectives for the organization, and that policies promote the compliance with ethical and legal standards.
Nonprofit boards are generally more extensive than those of for-profit corporations, because they must represent all constituents that have a stake in the institution’s activities. The boards of independent colleges typically comprise 70 or more members which includes wealthy individuals, parents teachers, alumni, and parents.
Non-profit and for-profit boards typically meet several times a year to discuss their operations and take important decisions. Both kinds of boards have governing documents which comprise articles of incorporation, bylaws, along with descriptions of the responsibilities http://www.boardroomhub.net/how-to-write-a-notice-for-a-meeting/ and roles of directors, committees, and the board. Both kinds of boards will create written policies, which include the ones on director independence and conflicts of interest and codes of conduct, confidentiality and indemnification.
