Although they may appear to have little in common, commercial boards and nonprofit directors face similar challenges when managing board business. Both boards can benefit from a management software system or a portal for boards to simplify their duties. These tools don’t just give the company an efficient central repository of information however, they can also help the board work more efficiently.
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. They include the adoption of sound governance and financial management policies, as well as ensuring the proper administration of funds. The board is also expected to ensure that the company follows all laws and regulations that pertain to its purpose, and provides a sufficient level of resources to meet its objectives.
A majority of nonprofit boards are required to have some fundraising skills in addition to their governing responsibilities. The board must be willing and able to spread the word and use their networks to gain access potential donors and, if it is financially feasible, they can make donations themselves.
Many nonprofits form their boards around a president, treasurer and secretary. These officer positions are required by most states to qualify for tax exemption. Most nonprofits also have several committees that handle similar subjects like fundraising programmes, finance and fundraising. A separate committee can help the board to distribute its responsibilities, and it can also be useful for recruiting new members who may not be able or comfortable to join the full board.