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