Alaska Nonprofit - Conduct Policies for Board Members

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Under wellestablished principles of nonprofit corporation law, a board member must meet certain standards of conduct and attention in carrying out his or her responsibilities to the organization. Several states, in fact, have statutes adopting some variation of these duties that would be used in court to determine whether a board member acted improperly. These standards are usually described as the duty of care, the duty of loyalty, and the duty of obedience.
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FAQ

Hear this out loud PauseWhen you agree to serve on a nonprofit organization's board, you assume a number of responsibilities to the organization and a series of fiduciary duties (legal obligations) on its behalf. Specifically, a director is obligated to fulfill three primary fiduciary duties ? loyalty, care and obedience.

Hierarchical Org Chart In a nonprofit setting, this chart usually starts with the board of directors at the top, followed by the executive director, and then cascades down through various levels of management and staff. Pros: It follows a clear chain of command and provides transparent reporting lines.

Hear this out loud PauseThere are usually four Officers: President or Board Chair, Vice President or Vice Chair, Secretary, and Treasurer, and the terms unique to each will be defined in the nonprofit's bylaws. The president is the head of the board.

Hear this out loud PauseYour board members should be engaged with your organization and the various projects and programs you're implementing. This means that they should participate in the various activities and decisions by serving on committees. Try to pair each board member with the committee that best interests them.

Hear this out loud PauseIn most states, the corporations law provides that the individual who serves as president can't at the same time also hold the office of secretary or the office of treasurer. The purpose of this rule is to ensure that there's a check and balance in the executive staff of the corporation.

The most common nonprofit board member positions are a president (also called the chairperson), vice-chair, secretary, and treasurer. A president, secretary, and treasurer are the mandatory positions, but many nonprofits also have a vice-chair.

While affluent connections are always helpful, you should also consider board members with connections who have a passion for the mission, have a connection to those you serve, and who can help you better serve the community.

The structure of a board is generally determined by the bylaws of the organization. Such bylaws define how many members there are, how the directors are elected, and how frequently the board meets. There is no required number of members for an organizational board and may depend on the company and its industry.

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Alaska Nonprofit - Conduct Policies for Board Members