MaRS Library 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
Carter & Associates. (2003, May). Good Governance in Meeting the Duties of Directors of Charities and Nonprofits. Retrieved September 21, 2009, from www.carters.ca/pub/article/charity/2003/Good%20Governance.pdf
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