Generally, one might think that for-profit and nonprofit organizations are very different. To some extent, there are many similarities, especially when it comes to board management. Like a for-profit, a nonprofit seeks to achieve good governance, compliance, budget management, effective oversight, and decision making. So while technology is becoming increasingly essential for achieving board management objectives, it’s also becoming more important for all corporations to use it efficiently.
For a nonprofit board, making extensive use of technology might seem like a costly decision, but doing so saves time, brings innovation, and improves efficiency, which more than makes up for the costs involved. One of the facets of the technology used today is a robust board portal software (also known as the board of directors software or board management software).
The question is, what is board portal software, and how can it benefit a nonprofit organization? Let’s find it out.
What is board portal software?
Board portal software is an online platform that is highly secure and centralized. It is designed for board directors, administrators, or executives to maintain oversight, engage in virtual board meetings, exercise governance responsibilities, organize and assign objectives, communicate with each other, and handle other board-related operations.
Moreover, board portals for nonprofits are designed explicitly with the needs of a nonprofit organization in mind and an emphasis on maintaining a high level of cybersecurity.
Let us now see why board management software is becoming increasingly popular among nonprofits and its benefits.
Top 5 reasons why board portal software is popular in nonprofit organizations
1. Increases automation and productivity
Virtual boardroom software improves productivity and efficiency by automating several board management tasks. The board of directors can use a board portal to create agendas, compile board books, set meetings, assign tasks and organizational goals. This brings a level of automation that saves valuable time for executives, employees, and volunteers.
Moreover, board portals handle all tasks related to board meeting management, including summaries of all meeting cycles, development cycles, and annual cycles, so that everyone across the board is fully aware of progress.
By automatically handling such manual tasks, executives have more time to focus on tasks requiring greater attention and leadership. These include strategic planning, fundraising, oversight, and effective governance. As a result, the nonprofit becomes more productive and efficient.
2. Improves cybersecurity and limits control
For nonprofits, one of the major concerns is protecting data and finances related to donors and the organizations. A data breach can land the organization in trouble and affect its reputation and future. Board portal software brings a reliable level of cybersecurity that is otherwise unachievable.
For example, most of the board management software encrypts the documents with data at all times. Moreover, high-quality boardrooms are certified to keep up with specific industry security standards.
A virtual boardroom eliminates the need to communicate through unsafe channels such as email with their dedicated closed-loop messaging systems, preventing executives from phishing attacks. Many board portal software types come with granular access permissions, which lets admins assign authorization and access to the users only as needed.
3. Allows seamless onboarding and implementation
Executives who are not used to board portals feel like it is a difficult thing to teach and get accustomed to. However, onboarding is a seamless process with such software, and the users learn it as they go. In contrast, training people to do manual tasks related to board management such as scheduling and organization takes time and resources.
Moreover, implementing this software is easy as it is designed to integrate well within the ongoing processes of a nonprofit organization. Board management software also comes with a lot of self-learning material, easy navigation, and simple user interfaces, enabling executives to get up to speed in no time.
4. Saves costs and increases ROI
Nonprofits are reasonably prudent when spending money on new technologies and innovations, and therefore, they are naturally on the fence about switching to board management software. However, board portals save costs and provide impressive quantitative ROI ( better governance, improved security, and better automation).
Firstly, virtual boardrooms significantly reduce paper use by handling all the board-related documentation, organization, and information digitally, and this saves considerable costs of paper and related stationery.
Secondly, executives can digitally create board books or board packs using a board portal. Usually, these things carry the cost of paper, courier, printing, labor, and delivery. But with a board portal, all of this can be done digitally.
5. Improves governance practices
Governance is one of the most critical responsibilities of board members, and a virtual boardroom handles that exceptionally well. Governance is a complex task that comprises many responsibilities.
A board portal provides executives with essential tools that ensure the best governance standards while maintaining security. It includes better engagement between the board members, improved transparency, seamless administration and organization, brainstorming strategic goals, and reducing security risks. These things are achievable using board management software, ultimately making effective governance possible.
Final word
Board management is a combination of complex tasks, practices, and processes that ensure a nonprofit’s oversight, efficiency, and results. A board of directors software addresses those needs reliably. Therefore, it is justifiable for nonprofits to use board portals to save costs and generate value according to their stated mission.
