No matter if your firm is commercial (for profit), an S or C Corporation or LLC, a partnership or a non-profit it needs clear guidance and supervision. This is usually provided by a board of directors or trustees.
Boards of for-profit as well as non-profit organizations share the exact same obligations. These include selecting and evaluating a CEO, creating operating plans, allocating and securing finances, ensuring that the policies are in accordance with ethical and legal requirements, and advancing the organization’s mission. Nonprofits also have the added responsibility of pursuing tax-exempt status as well as meeting all legal requirements.
A well-functioning Board requires dedicated individuals with a variety of talents and expertise, as well as contacts to ensure that the financial health of the organization is assured. Boards of both for-profit as well as non-profit organizations should actively seek and seek out qualified candidates instead of waiting for them to contact them. They should also simplify the process of screening, interviewing, and making decisions.
Non-profit and for-profit boards have standing committees that assist them with their management and governance duties. They include audit and governance, compensation, governance, nominations, as well as executive. Other committees may be specific to the particular industry or type of company that includes science and technology, collections and visitor engagement, quality & regulatory, or public affairs & social responsibility. Board members are expected to disclose potential conflicts of interest and not vote or debate on matters that fall under their influence.
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