No matter if your business is commercial (for-profit) or an S or C corporation or partnership, LLC, or a non-profit the organization requires clear direction and oversight. This is typically provided by a trustee or board of directors.
Boards of nonprofit and for-profit organizations have many of the same duties, such as selecting and evaluation of the CEO, setting operating plans, protecting and allocating financial resources, making sure that policies are in accordance with the law and ethical standards and furthering the organization’s mission. Nonprofits also have the added responsibility to seek tax-exempt status, and satisfying all legal requirements.
A functioning board requires the participation of committed individuals with different capabilities, experience my latest blog post and connections to ensure a secure financial future. Non-profit and for-profit boards should actively seek out and connect to candidates who are qualified instead of waiting for potential members to approach them. develop a simplified process for screening conducting interviews and making decisions, and think about the diversity of candidates (gender and socio-economic background race, religion and nationality) as an important consideration.
Both for-profit and non-profit boards have standing committees that help them in their management and governance responsibilities. They include audit as well as compensation, governance, nominations, as well as executive. Other committees are specialized to certain types of industries such as science and technology, collections and visitors engagement, quality & regulation, or public affairs &social responsibility. It is standard procedure for board members to disclose any potential conflicts of interest and recuse themselves from voting and deliberating on issues that fall within their sphere of influence or of concern.