Fiduciary Duties
This fiduciary duty requires acting in good faith, making informed decisions, and exercising due diligence
What is Duty of Care?
A common event where board members use their network to raise funds for the nonprofit.
What is a gala, golf tournament, or fundraiser?
This document outlines the nonprofit's vision, mission, and goals for the next 3-5 years.
What is a strategic plan?
This is the IRS designation required for a nonprofit to receive tax-deductible donations.
What is 501(c)(3) status?
This person leads board meetings and works closely with the Executive Director.
Who is the Board President?
The responsibility to ensure that the nonprofit follows its mission and complies with laws and regulations.
What is Duty of Obedience?
This term refers to donors who give regularly, providing consistent revenue.
What are recurring donors?
Before launching a new program, the board should ensure it aligns with this guiding principle.
What is the nonprofit's mission?
The board must review and file this document annually to maintain the organization’s legal status.
IRS Form 990
This individual is responsible for leading the nonprofit’s operations, staff, and volunteers.
Who is the Executive Director?
Avoiding conflicts of interest and putting the nonprofit’s interests above personal or professional interests.
What is Duty of Loyalty?
Board members are expected to do this to inspire confidence among potential donors.
What is make a personal financial contribution?
A process used by the board to analyze strengths, weaknesses, opportunities, and threats.
What is a SWOT analysis?
Nonprofits must ensure these are current and outline how the organization is governed.
What are bylaws?
The board is responsible for this process to ensure the Executive Director is meeting goals.
What is an Executive Director Evaluation?
Reviewing these documents helps the board understand the nonprofit's financial health.
What are Budgets and Financial Reports?
A strategy where board members approach businesses for donations or sponsorships.
What is corporate fundraising?
This term describes the act of evaluating progress toward the goals set out in the strategic plan.
What is performance monitoring?
Nonprofits must avoid this type of prohibited political activity to maintain their tax-exempt status.
What is endorsing or opposing candidates for public office?
This committee typically reviews the nonprofit’s financial performance and ensures accountability.
What is the Finance Committee
This process ensures transparency and compliance by maintaining meeting minutes and public reporting.
What is recordkeeping?
These campaigns encourage donors to match gifts made by others, often doubling the impact.
What is a matching gift campaign?
The board uses this analysis to identify trends affecting the nonprofit’s mission or operations.
What is an environmental scan?
This type of insurance protects board members from liability in case of lawsuits.
(What is Directors and Officers (D&O) insurance?)
Board members serve as these to the community, advocating for the nonprofit’s mission and goals.
What are ambassadors or advocates or representatives?