Nonprofit

Fiduciary Duties: What Your Board Members Need to Know

Not-for-profit board members, whether compensated or not, have a fiduciary duty to the organization. If your board hasn’t reviewed its fiduciary duties recently, it should do so. Fiduciaries generally have three primary duties. The first is duty of care: in other words, to oversee financial and operational activities carefully. The second duty is loyalty, otherwise known as acting in your nonprofit’s best interests. Obedience is the third duty and means board members must adhere to your bylaws and all applicable laws. Members who violate these duties may be held personally liable for financial harm to your nonprofit.

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