As a board member, you probably hear a great deal about new models for good corporate governance in general and the Sarbanes-Oxley Act in particular. Though you should be aware of how corporate trends are raising expectations in the world of nonprofits, fortunately you don't have to know the details of the new laws designed to increase accountability in the business world.
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Nevertheless, you do need to understand that you and your board colleagues are legally accountable for your association's decisions and actions. Here are the basics of what you must know and do concerning your fiduciary responsibilities in the nonprofit realm.
The legal framework
A director's responsibilities generally encompass the following three duties:
1. The duty of care requires you to act the way a reasonably prudent person would in a like position and under similar circumstances. Good faith and can did actions are hallmarks of the duty of care. At the most basic level, you must actively participate in board decisions, ask questions to gain the information that you reasonably need to make good decisions, and exercise …
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