Nonprofit Charitable Orgs

  1. Home
  2. Business & Finance
  3. Nonprofit Charitable Orgs

Essentials About Your Board of Directors

By Joanne Fritz, About.com

Legal Responsibilities of the Board of Directors:

Many states have laws governing the responsibilities of the board of directors. They often use the following principles of nonprofit corporation law.

Duty of Care:

A board member has the duty to exercise reasonable care when he or she makes a decision for the organization. Reasonable care is what an "ordinarily prudent" person in a similar situation would do.

Duty of Loyalty:

A board member must never use information gained through his/her position for personal gain; and must always act in the best interests of the organization.

Duty of Obedience:

A board member must be faithful to the organization's mission. He or she cannot act in a way that is inconsistent with the organization's goals. The board member is trusted by the public to manage donated funds to fulfill the organization's mission.

Directors also:

  • Make sure that the organization follows the law.
  • Approve all major contracts.
  • Are required to attend most board meetings, thus indicating their dedication to the organization.

Picking Your Board of Directors:

Your board should have skills in those areas of organizational management that you will need such as finance, public relations, legal, and human resources; and in programmatic areas as well such as social services, education, religion, etc.

Consider the fundraising potential of a board member. They are expected to set an example by donating to the organization themselves; and to open the doors to other contributions. Board members should be comfortable with fundraising.

Back to Nonprofit Boards - Find Them, Feed Them, Put Them to Work

Explore Nonprofit Charitable Orgs

About.com Special Features

Nonprofit Charitable Orgs

  1. Home
  2. Business & Finance
  3. Nonprofit Charitable Orgs
  4. Nonprofit Basics
  5. Board Questions
  6. Board Basics

©2009 About.com, a part of The New York Times Company.

All rights reserved.