Whatever your business is commercial (for profit) or an S or C Corporation or LLC, a partnership or a non-profit organization, it needs clear guidance and oversight. Typically, this is done by a board of directors or trustees.
Boards of both for-profit and non-profit organisations share the exact same responsibility. They have to choose and evaluating a CEO, preparing operating plans, allocating and safeguarding funds, ensuring policies are in compliance with the ethical and legal requirements and advancing the mission of the organization. Nonprofits are also accountable for getting tax-exempt status and ensuring that they meet all legal requirements.
A functioning Board requires individuals with different skills knowledge, experience and contacts to ensure that the financial health of the organization is secured. Non-profit and for-profit boards need to actively seek out and recruit to candidates who are qualified instead of waiting for potential members to approach them. to streamline the process of screening conducting interviews, making decisions, and take into account the diversity of the candidates (gender and socio-economic background, religion, race, nationality) as a significant factor.
Boards of non-profit and for-profit organizations typically have standing committees to aid in the execution of their governance and management duties, such as audit and compensation (or human resources) as well as governance and nominating, and executive. Other committees could be specific to the industry or type of organization that includes science http://www.boardroomhub.net/how-to-write-a-notice-for-a-meeting/ and technology, collections and visitor engagement, quality and regulatory, or public affairs & social responsibility. It is a standard practice for board members to declare any potential conflicts of interest, and to abstain themselves from voting and deliberating on matters which fall within their areas of influence or concerns.