Commercial and Nonprofit Boards of Directors Or Trustees

It doesn’t matter if your company is commercial (for-profit), an S or C corporation or partnership, an LLC or a nonprofit It requires clear direction and oversight. This is usually provided by a trustee or board of directors.

For-profit and nonprofit boards share a number of responsibilities, including selecting and reviewing the CEO, establishing operating plans, protecting and allocating financial resources, ensuring the policies are in the law and ethical standards and advancing the organization’s mission. Nonprofits also have the responsibility of getting tax-exempt status and complying with all legal requirements.

A well-functioning Board requires dedicated individuals with a variety of talents know-how and contacts to ensure that the financial health of the organization is safe. Boards of both for profit and non-profit organizations should actively recruit and approach qualified candidates instead of waiting for them to come to them. They should also simplify the process of interviewing, screening and making decisions.

For-profit and nonprofit boards also typically have standing committees to assist in addressing their various management and governance obligations like audit, compensation (or human resources), governance & nominating and executive. Other committees are specific to particular industries or types of business, such as science and technology, collections and visitors engagement, quality and regulation or public affairs and social responsibility. Board members are required to disclose any potential conflicts of interest, and not vote or debate on issues that fall under their authority.

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