It doesn’t matter if your company is commercial (for you could try this out profit) or an S or C Corporation or LLC, a partnership or a non-profit it needs clear direction and supervision. In general, this is handled by a board of trustees or directors.
Non-profit and for-profit boards have a lot of the same obligations, including selecting and review the CEO, creating operating plans, securing and allocating financial resources, making sure the policies are in ethical and legal requirements and advancing the company’s mission. Nonprofits are also responsible for obtaining tax-exempt status, and ensuring that they meet all legal requirements.
A well-functioning board requires dedicated individuals with various capabilities, experience and connections to help ensure a sound financial future. Boards of for-profit and non-profit organisations should actively search for and seek out qualified candidates, rather than waiting for them to contact them. They should also simplify the process of interviewing, screening and making decisions.
Boards of non-profit and for-profit organizations typically have standing committees to aid in the execution of their governance and management duties including audit and compensation (or human resources) as well as governance and nominating, and executive. Other committees can be specific to the particular industry or type of company, such as science & technology, collections and visitor engagement, quality & regulatory, or public affairs & social responsibility. It is common practice for board members to disclose any potential conflicts of interests and disqualify themselves from voting and deliberating on matters that fall within their area of influence or of concern.