New Mexico Nonprofit - Conduct Policies for Board Members

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US-ENTREP-0021-1
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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

A code of conduct guides the behavior of your board members, and it serves as a set of principles to guide their decision-making and other activities. Your code of conduct policy ensures that your board members are accountable for the decisions and choices they make.

As a nonprofit organization at the forefront of [purpose of organization], XYZ's policy is to uphold the highest legal, ethical, and moral standards. Our donors and volunteers support XYZ because they trust us to be good stewards of their resources, and to uphold rigorous standards of conduct.

Board members should be as open as possible about all the decisions and actions they make. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands it. Honesty.

Since this often involves managing money and other assets, a nonprofit board of directors' fiduciary duties include establishing a strategic plan, making short- and long-term goals, analyzing cash flow, regulating expenses, and establishing procedures to prevent mistakes and protect against fraud or misappropriations.

A code of conduct in practice can range from big picture ideals to specific rules. For example, a code of conduct can outline how employees should behave to reflect the organization's wider mission, but it can also define fixed regulations related to internal practices such as dress code or break policy.

What should a code of conduct include? Company values, ethics, and morals. ... Guidelines for employee behavior. ... Internal & external practices. ... Misconduct and consequences of code violations. ... Establish your priorities. ... Collect employee feedback. ... Define a compliance officer. ... Write your code of conduct policy.

Personal code of ethics examples. I will treat others as I wish to be treated. I will dedicate myself to acting courteously in my day-to-day interactions with others, despite my mood or current life situation. It is important to me to have a positive impact on the people I come into contact with.

Putting the interests of the organization above personal interests. Representing the organization in a positive and supportive manner at all times and in all places. Showing respect and courteous conduct in all board and committee meetings.

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New Mexico Nonprofit - Conduct Policies for Board Members