DUTY OF CARE, LOYALTY, OR OBEDIENCE
What is Duty of Care?
Doing your job carefully and making smart decisions like a normal responsible person would
Understanding what goes into the budget and why money is being spent
What is budgeting?
The person chosen by the board to lead the organization
What is hiring the Executive Director?
A board member puts themselves before the organization
What is breaking duty of loyalty?
Board members should act in the best interest of the organization
True
What is Duty of Loyalty?
Putting the organization before yourself and not letting personal stuff get in the way
Systems that help prevent mistakes or misuse of money
What are internal controls?
Responsible for running the day-to-day operations
What is managing daily operations?
A board member doesn’t review information before deciding
What is breaking duty of care?
It’s okay to ignore laws if it helps the organization
False
Following laws, rules, and making sure everything lines up with the mission
What is Duty of Obedience?
Knowing how to read and understand financial reports
What are financial statements?
The board supports this role but does not micromanage it
What is the Executive Director role?
A board ignores laws or policies
What is breaking duty of obedience?
Understanding budgets is part of the boards responsibility
True
What is Conflict of Interest?
When a board member personally gets a financial gain.
Thinking ahead about money and when to use savings
What are financial reserves?
The formal process of receiving feedback from the board
What is annual performance evaluation?
A board ensures money is being handled properly
What is financial oversight?
The board should micromanage the Executive Director
False