Commercial and Nonprofit Boards of Directors

While nonprofit and for-profit organizations have differences, both require a group of people to oversee the business to make it successful. The governing body, called the board of directors typically comprises people with a range of capabilities and connections. To be effective, nonprofit boards should look for members who are passionate about their mission and committed to seeing the organization reach its goals. The board should encourage new members to join committees that can help them gain experience in governance and other important topics.

In general, commercial and nonprofit boards or directors are governed by the government’s regulations as well as the organization’s articles incorporation, and the board’s own constitution my latest blog post as well as bylaws. These documents specify how the board will be formed. They also specify the number of members that vote and how the board will announce meetings, and the minimum numbers required to constitute a quorum. Additionally, both types boards are required to have written policies regarding conflicts of interests as well as director independence, confidentiality and indemnification.

Typically the board will comprise at least one or more officers (President and Vice Secretary, President and Treasurer). These roles and their distinct definitions are usually outlined in the bylaws of the organization. While the President could also be an Executive Director or CEO, it is crucial to remember that these two positions are distinct to keep the President’s role concentrated on oversight of the board and governance, and the CEO/ED’s role is focused on management.

Leave a Reply

Your email address will not be published. Required fields are marked *