It is important to understand behaviors that create effective nonprofit governance boards, as well as ethical principles and practices. For this assignment, you will take a close look at some of these principles. The purpose of this assignment is to learn more about the principles of board governance.
Boards are an essential component of any nonprofit organization. A sound understanding of the principles of board governance, and the behaviors that create effective nonprofit governance boards, will help your nonprofit thrive and achieve its mission.
Good board governance is essential for a nonprofit's success and sustainability. Here are some key principles:
Board members have a fundamental fiduciary duty to the organization. This encompasses three core responsibilities:
Duty of Care: Board members must act in good faith, with the care an ordinarily prudent person would exercise in a like position and under similar circumstances. This includes attending meetings, reviewing financial statements, and generally staying informed about the organization's activities. 👩🏽⚖️
Duty of Loyalty: Board members must act in the best interest of the organization, not for personal gain. This means avoiding conflicts of interest and always prioritizing the nonprofit's mission.