Although they may appear to have little in common, commercial boards and nonprofit directors face similar challenges when managing board business. Both can benefit from using boards portals or a management software to simplify their work. These tools do not just provide the organization with an efficient central repository of information, but they can assist the board in working more efficiently.
All boards, whether for-profit or nonprofit, are responsible for ensuring their organisations adhere to legal and ethical standards. These obligations are referred to as fiduciary duties. They include implementing sound governance and financial management policies, and ensuring proper administration of funds. The board also has to make sure the organization follows all laws and regulations pertaining to its purpose, and that it has the proper amount of resources to achieve its goals.
Most nonprofit boards are required to have some fundraising capabilities in addition to their duties as governing bodies. The board must be able and willing to promote their cause and make use of their connections to get access to potential donors, and, if financially feasible, contribute to the cause themselves.
Many nonprofits organize their boards around a president, treasurer and secretary. The majority of states require these officer posts to qualify for tax exemption. Additionally, the majority of nonprofits have several committees that handle department-like topics like fundraising, finance, programs and human resources. Separate committees allow the board to split its duties and can be beneficial for attracting new members that might not be able or comfortable serving on the entire board.