Fiduciary


Fiduciary
Each boardYour board of directors provides governance to your organization. member has a fiduciaryEach board member has a fiduciary duty to the non-profit organization which it governs. Fiduciary duties commonly include the duties of diligence, loyalty, and obedience. Specifically, this means each board member is required to act reasonably, prudently and in good faith, educate themselves about the organization, make reasonable inquiries into the day-to-day management of the organization, consider explanations and make informed decisions, and seek advice from qualified professionals when necessary. They are also required to place the interests of the organization first, including acting honestly, in good faith and in the best interest of the organization. Board members must disclose conflicts of interests and take action to avoid perceived or real conflicts of interest. They have a duty to act within the scope of the governing documents of the organization (constitution, by-laws, policies, etc) and to ensure that committees and staff do so as well. This includes ensuring these documents are up-to-date. Board members with special skills or knowledge have a duty to use that expertise in their role and to practice the standard of care expected of their professional abilities. They also have a duty to obey all laws and statutes that apply to the organization. The fiduciary duty of the board is the same for all types of governance structures and covers all areas of board responsibility. duty to the non-profit organization which it governs. Fiduciary duties commonly include the duties of diligence, loyalty, and obedience. Specifically, this means each board member is required to act reasonably, prudently and in good faith, educate themselves about the organization, make reasonable inquiries into the day-to-day management

Includes an organization’s Executive Director and managers, but not staff or supervisors. See also definition for “staff.”

of the organization, consider explanations and make informed decisions, and seek advice from qualified professionals when necessary. They are also required to place the interests of the organization first, including acting honestly, in good faith and in the best interest of the organization. Board members must disclose conflicts of interests and take action to avoid perceived or real conflicts of interest. They have a duty to act within the scope of the governing documents of the organization (constitution, by-lawsIn a non-profit context, by-laws are the ruling legal documents governing an organization and its board of directors. By-laws are set by the board – they outline the board’s structure and how it works, and the purpose and structure of the organization. By-laws should also include rules about how they can be amended, and the requirements of membership in the organization, if applicable., policies, etc) and to ensure that committees and staff

For our purposes, staff refers to agency employees who are neither managers nor executive directors.

do so as well. This includes ensuring these documents are up-to-date. Board members with special skills or knowledge have a duty to use that expertise in their role and to practice the standard of care expected of their professional abilities. They also have a duty to obey all laws and statutes that apply to the organization. The fiduciary duty of the board is the same for all types of governanceRefers to the source of strategic thinking and decisions that shape and direct an organization and its work and where, ultimately, accountability lies. Includes anything related to non‐profit boards as well as strategic leadership issues. structures and covers all areas of board responsibility.