For-profit and non-profit organizations may have a board of directors. The primary difference between a non-profit and a for-profit board is that members of the for-profit board are often compensated. However, the duties of the boards are similar.
Strategy
The strategic plan is set by the board in accordance with the organization's mission.
Financials
The board is also responsible for ensuring that the organization's finances are sound and that it has a fiduciary responsibility to the organization's shareholders or donors.
Performance Review
The board gives the executive director or head of the organization a job performance review, providing constructive feedback and working with the organization's leader on creating a development plan for improvement.
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Each board member is an ambassador of the organization and is expected to speak positively about the organization within the community.
Succession Planning
If the head of the organization leaves, the board is responsible for finding a suitable replacement.
