No matter if your organization is commercial (for profit) or an S or C Corporation or LLC, a partnership, or a nonprofit it needs clear direction and oversight. This is usually provided by a trustee or board of directors.
Non-profit and for-profit boards have many of the same obligations, including selecting and review the CEO, creating operating plans, securing and allocating financial resources, ensuring that policies are in line with ethical and legal compliance, and advancing the organization’s mission. Nonprofits are also accountable for getting tax-exempt status and meeting all legal requirements.
A well-functioning board requires participation from dedicated people with a variety of capabilities, experience and connections to help ensure a sound financial future. Non-profit and for-profit boards need to actively recruit and reach out to candidates who meet the criteria instead of waiting for potential members to approach them. make a more efficient process of screening interviewing, deciding and making decisions, and also consider candidate diversity (gender and socio-economic background race, religion, nationality) as an important consideration.
For-profit and nonprofit boards also generally have standing committees that aid in the execution of their administrative and governance duties, such as audit and compensation (or human resources) and governance, nominating, and executive. Other committees are specific to an industry or type, such as science and technology, collections and visitors http://www.boardroomhub.net/how-to-write-a-notice-for-a-meeting/ engagement, quality and regulation, or public affairs &social responsibility. It is standard procedure for board members to declare any potential conflicts of interest and to disqualify themselves from voting and deliberating on issues which fall within their areas of influence or subject to their control.