Boards or directors are the governing bodies for nearly all non-profits and companies. They set the plans for the organization, grant recognition to those who implement these plans, and oversee the executive staff. Many non-profits have advisory board members that provide advice and guidance to the executive director or board.
Boards that are nonprofit and commercial have a few similarities on the road to success. A healthy board requires careful recruitment, orientation and training of new members; a focus on creating a genuine partnership between staff and the board and respect for the time and dedication that board members volunteer to give.
The primary function for both types of boards is establishing strategic goals and making sure that management’s actions align with these goals. Both types of boards have to make sure that there are operating plans in place, and that financial resources as well as allocations are done in a way that achieves the long-term and near-term objectives for the organization, and that policies promote the compliance with ethical and legal standards.
Non-profit boards are usually more extensive than those of for-profit corporations, because they need to represent all constituencies that have a stake in the institution’s activities. The boards of colleges that are independent usually have at least 70 members which includes wealthy parents, wealthy individuals teachers, alumni, and other parents.
Boards for both non-profit and for-profit organizations typically meet regularly throughout the 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 duties and responsibilities of the board, individual directors, committees and. The two types of boards formulate policies in writing that include those regarding director autonomy, conflicts of interests as well as codes of conduct and indemnification.
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