Video Podcast: Common Nonprofit Fiduciary Duty Issues
Ben and Mike discuss the fiduciary duties that apply to the Board of Directors of a nonprofit organization, with a focus on applying the duty of care, duty of loyalty, and duty of obedience to issues that arise frequently for nonprofits, such as delegating matters to experts and committees, navigating conflicts of interest, service on multiple Boards, the corporate opportunity doctrine, and more.
CHAPTERS:
00:00 - Intro
02:02 - Overview of the duty of care, duty of loyalty, and duty of obedience
06:41 - Common duty of care issues: delegating authority on matters like updating of an employee handbook policy
13:47 - Common duty of care issues: reliance on experts
15:22 - Common duty of care issues: delegation to committees
16:44 - Common duty of loyalty issues: conflicts of interests
17:42 - Common duty of loyalty issues: Board members serving on Boards of multiple organizations
21:51 - Common duty of loyalty issues: corporate opportunity doctrine
24:48 - Common duty of obedience issues: compliance with Bylaws
26:06 - Common duty of obedience issues: making policy exceptions for certain Board members
FURTHER READING:
Q&A #167 – Does the Board of Directors have a responsibility to review staff policies?
Q&A #133 – How does delegation to a committee impact the fiduciary duties of Board members?
Q&A #62 – Are Board members allowed to pursue funding opportunities for other organizations?
