Whatever your business is commercial (for profit) or an S or C Corporation or LLC, a partnership or a non-profit, it needs clear direction and supervision. Generally, this is provided by the board of directors or trustees.
Boards of both for-profit and non-profit organizations have many of the exact same responsibilities. These include selecting and evaluating a CEO, preparing operating plans, allocating and securing financial resources, assuring the policies are in accordance with the ethical and legal requirements and advancing the organization’s mission. Nonprofits are also responsible for getting tax-exempt status and ensuring that they meet all legal requirements.
A well-functioning Board requires members with a range of skills and expertise, as well as contacts to help ensure that the financial stability of the company is secure. Boards of both for profit and non-profit organizations must actively seek and contact competent candidates, rather than waiting for them to approach them. They should also streamline the process of interviewing, screening and making decisions.
Boards of non-profit and for-profit organizations have standing committees that help them in their governance and management responsibilities. They include audit and compensation, governance and nominations, as well as executive. Other committees are specialized to an industry or type of organization, such as science and technology, collections and visitors engagement, quality & regulation, or public affairs &social responsibility. Board members are expected to disclose potential conflicts of interest, and refrain from voting or deliberating on issues that fall under their influence.
