While they might appear to have very little in common commercial boards and nonprofit directors have similar challenges in managing board business. Both boards can benefit from a management software or a board portal that can streamline their tasks. These tools not only provide the company with an information hub but also help the board work more efficiently.

All nonprofit and for-profit boards are accountable for ensuring their organizations comply with legal and ethical standards. Fiduciary duties include the adoption of sound financial and governance policies www.boardroomhub.net/are-all-credit-unions-non-profit-answers-and-more and ensuring that stewardship is done in a responsible manner. The board also has to ensure that the business adheres to all laws and regulations relevant to its purpose, and that it has the proper amount of resources to accomplish its goals.

In addition to these governing responsibilities, most nonprofit boards must possess some form of fundraising capabilities. The board must be able and willing to spread the word and use their networks to gain access potential donors and, if it is financially feasible, contribute to the cause themselves.

Many non-profit organizations have a board that comprises a president, treasury and secretary. These officer posts are required by many states for tax exempt purposes. In addition, most nonprofits will have several committees that handle department-like topics like finance, fundraising, human resources and programs. Having separate committees can allow the board to split its duties, and can also be useful for hiring new members who might not feel confident or qualified to serve on the entire board.