"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
