The Charity Lawyer blog has a great post about governance mistakes, which has been mentioned by the Chronicle of Philanthropy, the Nonprofit Quarterly, and numerous others. The list was also expanded by San Francisco tax-exempt organizations lawyer and publisher of the Nonprofit Law Blog, Gene Takagi.Here is excerpt. We would encourage you to view the entire list and details here.
1. Failing to Understand Fiduciary Duties. When you volunteer to serve as a director or officer of a non-profit, you accept the responsibility to act with the duties of good faith, due care and loyalty. You also accept the potential liability for failing to fulfill those duties. Increased scrutiny from the I.R.S., Congress, state attorneys general, the Department of Justice, donors and the media require vigilance at every step. It is no longer sufficient to rubber stamp committee or staff recommendations or to simply “abstain” from dicey decisions. Today, board service comes with real responsibilities and real consequences for those that fail to live up to them.
Read about the next two points and more.
2. Failing to Provide Effective Oversight.
3. Deference to the Executive Committee, Board Chair or the Organization’s Founder.
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