| Board of Directors | Board of Trustees |
|---|---|
| Used in: Corporations, Cooperatives | Used in: Nonprofits, Educational Institutions, Trusts |
| Role: Directs strategy, policies, and governance | Role: Manages assets in trust for beneficiaries |
| Focus: Profit (Corporations) or Member Welfare (Cooperatives) | Focus: Fiduciary responsibility to protect and use assets for a specific purpose |
Key Point
The term director is used in corporations and cooperatives because they direct the organization’s strategy, policies, and overall governance. They represent owners or members, ensuring the organization achieves its objectives.
Overall, the term trustee embodies a role that emphasizes ethical stewardship, community responsibility, and a commitment to the mission of an organization rather than financial interests, which frames their decision-making processes and governance style