While nonprofit and for-profit organizations differ in some ways they all require clear oversight by a group of people who want the company to succeed. The board of directors is usually comprised of individuals with different abilities and connections. However, to be successful, a nonprofit board should search for individuals who are passionate for the mission and commitment to see the organization progress towards its goals. Furthermore, the board should encourage new members to serve on committees that can help them become familiar with governance issues and other crucial topics.
In general, both commercial and non-profit boards, or directors are governed by laws of the government, or by articles of incorporation, and bylaws and constitution of the board. These documents define how the board will be organized, which includes the number of voting directors and how the board has to give notice of meetings, and the minimum amount of votes required to constitute a quorum. In addition, both types M&A Lifecycle Management of boards create written policies on conflicts of interest and director independence, confidentiality and indemnification.
The board typically has one or more officers (Presidents, Vice Presidents, Treasurers and Secretaries). The bylaws for the organization will typically define these roles and their specific terms. While the President could also be an Executive Director or CEO, it is important to keep in mind that these two positions are distinct and to keep the President’s job focussed on oversight of boards and governance and the CEO/ED’s role is focused on management.