Commercial and Nonprofit Boards Or Directors

Boards or directors are the governing bodies for nearly all non-profits as well as businesses. They decide on the policies for the organization, grant recognition to those who perform these programs, and supervise the executive staff. Many non-profits have advisory board members that provide advice and guidance to the executive director or board.

Commercial and nonprofit boards share some commonalities along the road to success. A healthy board requires careful recruitment, orientation and training of new members; attention to building a strong partnership between board and staff; and respect for the time and dedication required advantages and disadvantages of credit unions by volunteer board members.

Both kinds of boards play an important role in setting goals for strategic development and ensuring management’s actions match these goals. Both types of boards have to ensure that operating plans are in place; that financial resources are secure and allocated in ways that achieve near- and long-term objectives of the organization; and that policies promote ethical and legal compliance.

Nonprofit boards are usually larger than for-profit ones because they must represent all stakeholders that are involved in the institution. The college boards typically have at least 70 members comprising wealthy parents, wealthy individuals teachers, alumni, and parents.

Boards for both non-profit and for-profit organizations typically meet regularly throughout the year to discuss operations and make crucial decisions. Both types of boards have governing documents, which comprise articles of incorporation and bylaws, along with descriptions of the responsibilities and roles of committees, directors, and the board. The two types of boards adopt written policies, including those on director independence, conflicts of interest as well as codes of conduct, confidentiality and indemnification.