Although they may appear to have nothing in common, commercial and nonprofit directors or boards both face similar problems when it comes to managing the business of their boards. Both can benefit from using an online portal for boards or a management software system that can help reduce the burden of their jobs. In addition to providing the company with a central place to store information, these tools can also enable the board to work more efficiently and effectively as together.
All boards, whether for-profit or not, are responsible for ensuring their organisations adhere to legal and ethical standards. These responsibilities are known as fiduciary duties and can include implementing sound financial and governance policies, and ensuring proper stewardship of funds. The board must also ensure that the company adheres to all laws and regulations related to its purpose and provide adequate resources to meet its goals.
In addition to these governing duties The majority of nonprofit boards are expected to have some degree of fundraising capabilities. The board should be willing and able to promote their cause and leverage their networks to gain access potential donors and, if financially feasible, make donations themselves.
Many nonprofits have a board that is composed of a president, treasury and secretary. Most states require these officers posts to qualify for tax exemption. In addition, most non-profit organizations will have multiple committees to handle departmental-related subjects like finance, fundraising, programs and human resources. Separate committees enable the board to share its work and are beneficial in attracting new members who might not feel qualified or comfortable serving on the board.