While they may appear to share nothing, commercial and nonprofit directors or boards are both faced with similar challenges when it comes to managing the business of their boards. Both could benefit from using an administration software system or a portal for boards to simplify their responsibilities. These tools do not just give the company an information hub, but they can aid the board to work more efficiently.
All nonprofit and for-profit boards are accountable for ensuring their organizations are in compliance with legal and ethical standards. These obligations are referred to as fiduciary duties and can include adopting sound governance and financial management policies, and ensuring the proper administration of funds. The board also has to ensure that the organization follows all laws and regulations pertaining to its mission and provides a sufficient level of resources to achieve its goals.
In addition to these governing responsibilities The majority of nonprofit boards are required to possess some form of fundraising ability. This implies that the board must be willing to spread word about the organization and use its networks to commercial and nonprofit boards or directors gain access to potential donors, and, if financially feasible the board can make its own donations.
Many nonprofits have their boards around president, treasurer and secretary. The majority of states require these officer positions for tax exemption purposes. In addition, most nonprofits will have multiple committees that handle department-like topics like fundraising, finance, human resources and programs. Separate committees allow the board to divide up its workload, and it could be beneficial for recruiting new members who may not feel comfortable or qualified to serve on the entire board.
