DUTY OF CARE, LOYALTY, OR OBEDIENCE
Doing your job carefully and making smart decisions like a normal responsible person would
What is Duty of Care?
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
What is True
Putting the organization before yourself and not letting personal stuff get in the way
What is Duty of Loyalty?
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
What is 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 board responsibility
What is True?
Care, Loyalty, and Obedience
What are the three main board duties?
Thinking ahead about money and when to use savings
What are financial reserves?
Receives feedback and evaluations from the board
What is performance evaluation?
A board ensures money is being handled properly
What is financial oversight?
The board should micromanage the Executive Director
What is False?
Requires board members to be prepared and actively participate in decisions?
What is Duty of Care
Keeping track of and protecting the organization’s money overall
What is financial oversight?
Carries out the mission through leadership and decision-making
What is organizational leadership?
The board does not review the budget before approving it, what duty is affected?
What is Duty of Care
Internal controls help protect money from being misused
What is True?