While nonprofit and for-profit organizations may have some differences but both require clear oversight from a group of people who want the business to be successful. This governing body, the board of directors, typically includes people with a range of skills and connections. To be successful, nonprofit boards must seek out people who are enthusiastic about the mission and committed to seeing the organization achieve its goals. Furthermore, the board should encourage new members to participate on committees, which can help them become familiar with governance issues and other important subjects.

Generally speaking, both boards of directors, whether nonprofit or commercial, directors are governed by regulations of the government and the company’s articles of incorporation, and the board’s constitution and bylaws. These documents spell out how the board will be established. They also define the number of members that vote and the method by which the board must notify members of meetings, and the minimum number of members required to constitute an quorum. Both types of boards also create written policies regarding conflicts of interest and independence of directors. They also cover confidentiality and indemnification.

The board will typically have one or several officers (Presidents Vice Presidents, Presidents Secretaries and Treasurers). The bylaws of the organization will typically define these roles and the specifics of their terms. While the President can be the CEO or Executive Director, it is important to be aware that the two positions are not the same and to keep the president’s role concentrated on oversight of the board and governance, and the CEO/ED’s responsibilities are focused on management.

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