Commercial and Nonprofit Boards of Directors Or Trustees
No matter if your business is commercial (for-profit) or an S or C corporation or partnership, LLC, or a non-profit It requires clear direction and oversight. This is usually handled by a trustee or a board of directors.
Boards of nonprofit and for-profit organizations share many of the same obligations, including selecting and reviewing the CEO, establishing operating plans, safeguarding and allocating financial resources, ensuring that policies are in line with legal and ethical compliance and advancing the company’s mission. Nonprofits also have the responsibility of pursuing tax-exempt status and fulfilling all legal requirements.
A well-functioning board requires dedicated individuals with varying abilities, knowledge and connections to ensure a solid financial future. Boards of both for-profit and non-profit organizations should actively recruit and seek out suitable candidates, instead of waiting for them to come to them. They should also streamline the process of screening, interviewing, and making decisions.
For-profit and nonprofit boards also typically have standing committees to help them with their diverse governance and management duties for example, audit and compensation (or human resources) and governance, nominating, and executive. Other committees could be specific to the particular industry or type of organization like science and technology, collections and visitor engagement, quality & regulatory or public affairs and social responsibility. It is standard procedure for board members to declare any potential conflicts of interest, and to abstain themselves from voting and deliberating on issues that are within their sphere of influence or of concern.