Commercial and Nonprofit Boards of Directors Or Trustees
No matter if your organization is commercial (for profit), an S or C Corporation or LLC, a partnership or a non-profit organization, it requires clear direction and supervision. Typically, this is done by the board of trustees or directors.
Boards of nonprofit and for-profit organizations share a number of responsibility, including choosing and evaluating the CEO, establishing operating plans, protecting and allocating financial resources, assuring the policies are in legal and ethical compliance and advancing the company’s mission. Nonprofits are also responsible of pursuing tax exempt status and complying with all legal requirements.
A well-functioning board requires the participation of dedicated individuals with various skills, expertise and connections to ensure a financially sound future. Boards of both for profit and non-profit organizations must actively seek and reach out competent candidates, rather than waiting for them to come to them. They should also streamline the process of screening, interviewing, and making decisions.
Both boards for non-profits and for-profits have standing committees to assist them with their governance and management duties. They include audit as well as compensation, governance, nominations, as well as executive. Other committees are specialized to an industry or type, such as science and technology, collections and visitors engagement, quality and regulation or public affairs and social responsibility. It is standard procedure for board members to declare any potential conflicts of interests and disqualify themselves from deliberating or voting on issues which fall within their areas of influence or of concern.