Becoming a non-profit director

IT is not uncommon for board directors who sit on "for-profit" boards to also serve on the boards of non-profit organisations (NPOs). The crossover from corporate to NPO boards has surprised some directors who have found that, in spite of their considerable experience in the for-profit sector, they had to adapt and re-learn what they knew when they entered a non-profit boardroom.

Although business leaders have the skills and expertise that the non-profit sector needs, understanding and appreciating the differences between the two types of boards substantially improve the quality of the NPO board and the experiences of its directors.

At the outset, the job of a director on both types of boards looks similar. Directors on both types of boards work closely with management to ensure adherence to good governance, compliance with relevant laws and codes, adoption of best practices in transparency and accountability that build trust with stakeholders, and ensure …