Whether your organization is a commercial (for-profit) or an S or C corporation, a partnership, an LLC, or a non-profit It requires clear direction and oversight. This is usually provided by a trustee or a board of directors.
For-profit and nonprofit boards have a lot of the same obligations, including selecting and review the CEO, creating operating plans, securing and allocating financial resources, assuring that policies are in line with ethical and legal requirements and advancing the company’s mission. Nonprofits are also responsible for getting tax-exempt status and ensuring compliance with all legal requirements.
A well-functioning board requires committed individuals with different abilities, knowledge and connections to ensure a secure financial future. Boards of for-profit and non-profit organizations must actively seek and approach qualified candidates instead of waiting for them to approach them. They should also simplify the process of screening, interviewing, and making decisions.
Boards of non-profit and for-profit organizations typically have standing committees to assist in addressing their various management and governance obligations for example, audit, compensation (or human resources) and governance & nominating, and executive. Other committees are focused on an industry or type such as science and technology, collections & visitors engagement, quality & regulation, or public affairs &social responsibility. It is common practice for board members to declare any potential conflicts of interest, and to abstain themselves from deliberating or voting on matters that fall within their area of influence or of concern.