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
What should every board member understand about the budget?
What goes into the budget and why money is being spent.
Who is the Executive Director?
The person chosen by the board to lead the organization to run the operations of the nonprofit.
What is a nonprofit mission?
The mission states why a nonprofit agency exists.
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
What are internal controls?
Systems that help prevent mistakes or misuse of money
What is most commonly the overall responsibility of the Executive Director?
Taking responsibility for running all the day-to-day operations
What is a nonprofit vision?
The future they want to create
It’s okay to ignore laws if it helps the organization
False
What is Duty of Obedience?
Following the by laws, rules, and making sure everything lines up with the mission
What are the 2 main nonprofit financial statements?
How does the board interact with the Executive Director?
The board supports this role but does not micromanage it
What are nonprofit values?
The agency’s standards and principles that drive the organization
Understanding budgets is part of the boards responsibility
True
What is Conflict of Interest?
When a board member has an opportunity to personally gain from their board position.
What are financial reserves?
Thinking ahead about money and when to use savings
What is annual performance evaluation?
The formal process of receiving feedback from the board for the Executive Director
How can mission, vision and values be helpful to a board?
They can guide them in finding the best Executive Director for their nonprofit and guide them in other important decisions.
The board should micromanage the Executive Director
False