Directors’ and Officers’ Duty of Care – Pay Attention and Take Responsibility!

This blog post is part one of a three-part series on fiduciary responsibilities.

You’ve been asked to serve as a nonprofit director or officer, or perhaps you are already doing so.  What legal responsibilities do you take on as a director or officer?  In legal terminology, these responsibilities are known as “fiduciary” duties, the first of which is the duty of care.  Additional fiduciary duties of loyalty and obedience will be addressed in subsequent articles.

The Basics of Fiduciary Duties

Resolved! Best Practices for Board Resolutions

How does a nonprofit organization act?  Why through its leaders, of course.  But they do not – or at least should not – act without the board’s official approval on major decisions.  In other words, the directors collectively “resolve” through their board – as the governing body – that the nonprofit shall take certain action.  What do such resolutions look like, and where can they be found?

To Pay or Not to Pay: Compensating Nonprofit Directors and Officers

May directors and officers get paid by the nonprofit organizations they serve?  This question often arises when a nonprofit’s founder seeks compensation for his or her services to the organization, as well as occasionally when payment to others seems warranted.  The answer is generally “Yes,” but with several caveats.

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