Being a member of a board of directors has various benefits to both organizations and individuals. It’s a great opportunity to get experience in directing and making decisions, build networks and establish connections with philanthropists, community leaders and other leaders. It also helps in the advancement of your career.
All boards, regardless of whether they are for-profit or non-profit are required to adhere to an established set of rules that govern their operations. It is crucial that people who wish to become board members know these guidelines and their responsibilities.
Board members need to be active and involved take part in regular meetings, review documents like financial statements and strategic reports and know how to ask questions. They should be able to determine the organization’s long-term and shorter-term objectives, as well as its resources and conflicts of interests.
In the case of a publicly traded company, board members must also be ready to take an active role in the management of the company and respond rapidly to situations of crisis to discharge their fiduciary responsibilities and maintain good governance standards. A board must also maintain relationships with the community, be attentive to the needs and expectations of the community and active in outreach activities.
The boards of non-profit organizations must be focused on their stakeholders. They usually include the people that they serve, the companies that support them and the elected officials and government agencies who regulate them. They also include donors who contribute money to their organization. They also have to establish systems that stop embezzlement and fraud, and for developing connections with other groups in the community.
