To avoid or diminish financial and accounting risks that might threaten the organization’s existence or decrease its effectiveness, the board needs to be aware of proper financial processes and pra
The board must ensure adequate resources to allow the organization to carry on its mandate. Financial resources feed into the health and stability of the organization.
Fiduciary obligations require charitable non-profit organizations to adhere to the highest ethical and legal standards. In every decision made and action taken, a charitable non-profit must:
By incorporating your nonprofit you create a legal entity whose primary function is to provide limited personal liability protection to those managing the organization.
Indemnification is the organization’s direct expression of willingness to protect its board members (and its senior staff) from the financial burdens of liability.
To protect the organization, itself, and its members, the board must start by following the legal obligations common to all boards: duty of care, duty of loyalty, and duty of obedience.
Most nonprofits start as all-volunteer organizations (AVO), without a paid staff. The organization operates with the support of its board and maybe additional volunteers.
The board is responsible for defining and guarding its mission, setting the direction for the organization, and ensuring clearly-set values guide every decision.
Question: I will be forming a new nonprofit organization soon and I am in the process of recruiting the initial Board of Directors and drafting governing documents.
