LEGAL EASE
The three legal responsibilities of all nonprofit board members
What are the fiduciary duties?
The person who typically facilitates votes and leads board meetings.
Who is the Board Chair?
A framework that defines a nonprofit’s inputs, activities, outputs, and outcomes.
What is a logic model or theory of change?
The most common reason people donate to a nonprofit.
What is because someone asked?
The proper way to present a vote in a board meeting.
What is “I move to…” or “I move that we…”?
The responsibility to act as an ordinarily prudent person would under similar circumstances.
What is the duty of care?
The person responsible for evaluating, hiring, and firing staff.
Who is the Executive Director or CEO?
A mandatory annual filing that requires U.S. nonprofits to disclose financial and other information.
What is the 990?
The type of donation that can be spent on anything and that all nonprofits wish for more of.
What is unrestricted?
A great way for board members to engage early on in their board service, to better understand issues in a board meeting, and to humbly propose alternatives.
What is asking questions?
The responsibility to act in the best interest of the nonprofit.
What is the duty of loyalty?
An alliterative phrase that describes the three (or four) ways a board member contributes.
What is ‘time, talent, and treasure’? (and ties)?
The document that defines the rules of the board.
What are the bylaws?
Three pros and three cons of fundraising through events.
What are…
Pros: build visibility, easy to ask friends to attend, fun
Cons: expensive, time intensive, ROI may not warrant it
The portion of a board meeting when all staff leave the room and the board remains to discuss specific matters.
What is executive session?
The responsibility to be faithful to the nonprofit’s mission and comply to all laws and bylaws.
What is the duty of obedience?
Three common committees on a nonprofit board.
What are…
Executive committee
Development committee
Finance committee
Audit committee
Program committee
An independent assessment of a nonprofit’s financial position and procedures.
What is the audit?
The coverage that protects board members’ personal assets in the event that they are sued for wrongful acts in governing a nonprofit.
What is Director & Officers (D&O) Liability insurance?
A long overdue topic that boards are now grappling with and that could lead to changes in board recruiting, financial expectations, and culture.
What is diversity, equity, and inclusion?
A tax status, not a way of doing business.
What is a “nonprofit”?
5 of the 10 basic responsibilities of a nonprofit board member.
What are…
Define and advocate for mission
Select the CEO
Support and evaluate the CEO
Ensure effective planning
Monitor and strengthen programs
Ensure adequate financial resources
Protect assets and provide financial oversight
Build a competent board
Ensure legal and ethical integrity
Enhance the organization’s public standing
An independent assessment of a nonprofit’s impact that attempts to achieve statistically significant findings.
What is a randomized control trial?
The nonprofit organization’s equivalent of ‘profit’ in a corporation.
What is change in net assets?
One of the hardest but most important traits a board member can display.
What is courage?