Directors or boards are the governing bodies of almost all non-profits and companies. They establish the plans for the company, award recognition to those who perform these plans, and oversee the executive staff. Many nonprofits also have advisory boards to provide guidance or advice to the executive director and board.

Nonprofit and commercial boards share some commonalities along the road to success. Healthy boards require careful recruitment, orientation and training for new members, as well as creating a real partnership between board and staff; and respect for the time and dedication that board members volunteer to give.

Both types of boards have an important role to play in setting strategic goals and ensuring that the management’s actions meet these goals. Both types of boards need to ensure that operating plans are in place and that financial resources are secured and distributed in ways that help achieve both long- and short-term objectives of the organization; and that policies promote ethical and legal compliance.

Nonprofit boards are typically larger than for-profit businesses, since they need to be representative of all stakeholders who have an interest in the institution’s operations. The boards of independent colleges typically include 70 or more people, including wealthy individuals, parents and teachers, as well as alumni.

Typically both nonprofit and for-profit boards meet several times a year to discuss their work and make decisions. They also have governing documents that contain bylaws, articles of incorporation and descriptions of the responsibilities and responsibility of the board as well as individual directors and committees. Both types of boards will create written policies including those on director autonomy, conflicts of interest code of conduct, and indemnification.

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