US Legal Forms
Board Member Agreement

Board Member Agreement

Category:

Corporations - Officers and Employees

State:

Multi-State

Control #:

US-ENTREP-0022-5

Format:

Instant download

Description

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.

Definition and meaning

A Board Member Agreement is an internal document that outlines the expectations and commitments of an individual serving on a nonprofit organization's board of directors. Though it is not a legally binding contract, it serves as a mutual understanding between the board member and the organization regarding their roles, responsibilities, and the organization's mission.

Key components of the form

When drafting a Board Member Agreement, several essential elements should be included to ensure clarity and effectiveness:

Expectations: The agreement should specify the duties expected of the board member, such as attendance at meetings, participation in fundraising, and engagement in committees.
Fiduciary Duties: It is vital to outline the fiduciary responsibilities, including the duty of care and the duty of loyalty that board members owe to the organization.
Organization’s Commitments: The document should detail what support the organization will provide, such as access to information, respect for the board member's time, and liability protection.

Who should use this form

This agreement is suitable for individuals who are joining or currently serving as board members of nonprofit organizations. It is designed to help ensure they understand their roles and the expectations set forth by the organization. Nonprofit organizations looking to formalize board member commitments will also benefit from utilizing this agreement.

Benefits of using this form online

Utilizing an online format for the Board Member Agreement offers numerous advantages:

Accessibility: Users can easily access and download the agreement from anywhere, ensuring that potential board members can review the document at their convenience.
Up-to-Date Information: Online forms can be regularly updated to reflect changes in laws or organizational policies, ensuring all users have access to the most current information.
Simplified Completion: Online forms often provide guided prompts and clarity for users, helping them understand what information is needed and how to fill it out accurately.

Common mistakes to avoid when using this form

To ensure the effectiveness of the Board Member Agreement, consider these common pitfalls:

Vague Language: Avoid ambiguous terms; be clear about the responsibilities and commitments of board members.
Neglecting Legal Duties: Ensure that fiduciary duties are outlined explicitly, as failing to do so may lead to misunderstandings.
Inconsistent Revisions: Regularly update the agreement to reflect changes in organizational expectations or legal standards to prevent reliance on outdated information.

What documents you may need alongside this one

In addition to the Board Member Agreement, the following documents may be beneficial:

Bylaws: The organization's bylaws provide governance guidelines and detailed procedures for board operations.
Job Descriptions: Detailed descriptions of board roles can complement the agreement by offering further clarity on specific responsibilities.
Conflict of Interest Policy: A policy detailing how to handle potential conflicts is crucial for maintaining ethical governance.