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

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The strategic plan is set by the board in accordance with the organization's mission.

Financials

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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

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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.

Image

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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

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If the head of the organization leaves, the board is responsible for finding a suitable replacement.