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.
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