Whether your organization is a commercial (for-profit) or an S or C corporation or partnership, LLC or a nonprofit, it needs clear direction and supervision. This is typically handled by a trustee or board of directors.
Nonprofit and for-profit boards share many of the same responsibilities, including selecting and evaluating the CEO, establishing operating plans, securing and allocating financial resources, making sure that policies are http://www.boardroomhub.net/are-all-credit-unions-non-profit-answers-and-more/ in line with ethical and legal requirements and advancing the company’s mission. Nonprofits are also accountable for getting tax-exempt status and complying with all legal requirements.
A functioning Board requires people with a variety of skills know-how and contacts to ensure that the financial stability of the company is safe. Boards of both for-profit and non-profit organizations should actively recruit and seek out competent candidates, rather than waiting for them to approach them. They should also simplify the process of screening, interviewing, and making decisions.
For-profit and nonprofit boards also generally have standing committees that help them with their diverse management and governance obligations for example, audit and compensation (or human resources) and governance, nominating, and executive. Other committees are specific to particular industries or types of business of organization, such as science and technology, collections & visitors engagement, quality and regulation, or public affairs &social responsibility. Board members are required to disclose potential conflicts of interest, and not vote or debate on issues under their authority.