Know your responsibilities as a director.
by Ryan Peak
It is a great honor to serve on the board of a nonprofit organization, but for many directors, board membership is a new experience. Organizations should take the time to orient new directors on their responsibilities in governing the organization. Generally, the board of directors is responsible for providing leadership and oversight to the officers and employees on the activities of the organization and ensure the organization acts in accordance with its stated purposes. To be effective, directors should prepare for, attend, and participate in all board meetings and be keenly aware of the organization’s purposes. The board must also govern itself and ensure strict compliance with applicable laws and regulations. When we counsel organizations who have unwittingly run afoul of the law, we can be certain they have not adopted and implemented the measures necessary to govern themselves, including adoption, review, and implementation of well-written bylaws; adoption and annual review of a conflict of interest policy, implementation of internal and external auditing procedures, and retention of legal counsel with experience in nonprofit governance. To learn more about these and other critical board responsibilities, contact one of our attorneys.