"Governance of Local Assocations - Fiduciary Duties"

"It's best to comply than to pretend"

"What does "good governance" mean?"

What is the Fiduciary Duty of a Board Member?

A board member in a non-profit organization has broad management authority as it relates to policies and procedures which include finance, strategic development and oversight. Fulfilling this responsibility begins with understanding the nature and scope of the duty which is compromised of the duty of care, duty of loyalty and duty of obedience. "Best practice" for all non-profits should include a clear understanding of corporation procedures and its bylaws as well as establishing procedures by which compliance with the fiduciary duty is ensured. Georgia Code Title 14.

Duty of Care
    The duty of care requires that a director discharge his or her duty:
       (i) in good faith;
      (ii) with the care an ordinarily prudent person in a like position would exercise; and
     (iii) with a reasonable belief the action to be taken is in best interests of the organization.

         a. Good Faith - Demands honesty, fair dealing and is measured by reviewing objective facts and circumstances
         b. The Duty of Loyalty
         c. The Duty of Obedience