Being a member of the board of directors can provide many benefits for both organizations and individuals. It’s a great opportunity to gain experience in directing and making decisions, build networks and establish connections with philanthropists, community leaders and other leaders. It also helps you advance your career.
All boards, no matter if they are for-profit or not they must adhere to an established set of rules that govern their activities. It is important that people who are contemplating joining a board understand these rules and guidelines as well as their obligations are.
Board members should be involved and engaged and regularly attend meetings and review documents such as financial statements and strategic reports and be able to answer questions. They must understand the short-term and long-term objectives of the organization as well as the way it is funded and be aware of any possible conflicts of interests.
In the case the company is public, its board members are also required to be prepared to assume an leadership role, and to be able to respond rapidly in times of crisis to meet their fiduciary obligations and adhere to good governance practices. It is also the responsibility of the board to keep in touch with the community it serves, so be sensitive to their requirements and expectations, and participate in community outreach activities.
Not-for-profit boards must consider all their stakeholders, which typically include the people they click here for more serve, businesses that support them as well as elected officials, the government agencies that oversee them, as well as donors who contribute financially to their organization. They are also accountable for establishing systems to stop embezzlement and fraud and for establishing relationships with other groups in the community.