Commercial and Nonprofit Boards Or Directors
Boards of directors, commercial or not they are the legal governing bodies of various business entities. They can be listed on a publicly traded stock exchange (a public company) or privately-owned and taxed (a private or family limited partnership or a company) or exempted of federal income tax due to their charitable purpose (a nonprofit corporation).
Boards must fulfill the duties of a fiduciary, regardless what type of organization they represent. This includes ensuring that their decisions are based on facts and the best interests of an organization. Boards should also be aware of the legal implications of their actions and ensure that they comply with all the rules as laid out in their bylaws. This includes those related to fundraising as well as conflicts of interest and other policies.
Be aware that the majority of board members are volunteers and are not paid. Because of this, board members must be active and engaged in the work the board is doing for the community.
A contract that is not legally binding but clearly outlines key roles, responsibilities, and expectations can be used to keep the board of non-profits active. This will reduce the amount of back and forth and meetings needed for reporting.
Diversity is another way to enhance a board. Having a mix of people from diverse backgrounds and perspectives can deter groupthink and myopia. It is crucial to choose individuals from diverse backgrounds, especially those who directly affect the social issue your organization addresses. Other aspects to consider include age and ethnicity and also working styles, professions as well as political beliefs and location.