Whatever your business is commercial (for profit), an S or C Corporation, a partnership or LLC, or a nonprofit it requires clear direction and supervision. This is typically handled by a trustee or a board of directors.
Boards of for-profit and non-profit organizations have many of the exact same responsibilities. These include deciding and evaluating a CEO, preparing operating plans, distributing and protecting funds, ensuring the policies are in accordance with the ethical and legal requirements and advancing the mission of the organization. Nonprofits also have the responsibility of pursuing tax-exempt status and satisfying all legal requirements.
A well-functioning Board requires individuals with different skills and expertise, as well as contacts to ensure that the financial future of the organization is secure. Non-profit and for-profit boards need to actively seek out and recruit to qualified candidates instead of waiting for prospective members to approach them. develop a simplified process for screening interviewing, deciding and making decisions, and consider convene azeus the diversity of candidates (gender, socio-economic background, race, religion, nationality) as an important consideration.
Non-profit and for-profit boards have standing committees to assist them with their governance and management responsibilities. They include audit and compensation, governance and nominations, and executive. Other committees could be specific to the particular industry or type of business for example, such as science and technology, collections & visitor engagement, quality and regulatory or public affairs and social responsibility. Board members are expected to disclose any conflicts of interest and not vote or debate on issues that fall within their influence.