While they may appear to share nothing boards of directors from nonprofits and commercial boards or directors both face similar challenges when it comes to governing board business. Both could benefit from a board portal or management software to reduce the burden of their jobs. In addition to providing the company with a central repository of information, these tools could help the board work more efficiently and effectively as an entire.
Boards of nonprofit and for-profit organizations are accountable for ensuring that their organizations meet ethical and legal standards. These responsibilities are known as fiduciary duties and can include implementing sound financial and governance policies, as well as ensuring the proper management of funds. The board must be sure that the organization adheres to the laws and regulations applicable to its purpose and provide adequate resources to meet its objectives.
In addition to these governing duties The majority of nonprofit boards are required to have some level of fundraising capacity. The board must be able and willing to share their message, use their connections to connect potential donors and, if it is financially feasible, raise funds themselves.
Many non-profit organizations have a board that is comprised of an executive, treasury and secretary. Most states require these officers posts to qualify for tax exemption. Most nonprofits also have several committees that deal with similar issues such as fundraising as well as finance and programs. Separate committees let the board divide its work and are useful in recruiting new members who may not be able or comfortable serving on the board.
