For-profit and non-profit board duties and responsibilities

The boards of directors of for-profit as well as non-profit organizations have certain duties to perform. Board duties and responsibilities include:

• Establishing policies and objectives for the for-profit or non-profit organization
• Selecting, supporting and conducting performance reviews on the chief executive
• Ensuring that there is adequate financing from lenders, share offerings or donors
• Approving the annual operating plans and the strategic direction
• Answering to the stakeholders—specifically the shareholders and/or members
• Insisting upon regulatory audits and compliance with the appropriate authorities
• Appointing auditors and approving the audited statements

Beyond this list of board duties, boards must assume other, more lofty responsibilities such as:

• Ensuring that short- and long-range plans are generated, maintained and achieved
• Enhancing the organization’s public image—whether non-profit or for-profit
• Setting a high-quality example of how governance functions and adds quality to the venture