Board of Directors Duties and Responsibilities
Boards of directors have three major legal duties:
- Duty of Care – Requires that a board member act as an ordinary, prudent person in a like circumstance;
- Duty of Loyalty – Requires that a board member act in good faith and in the best interests of the organization;
- Duty of Obedience – Requires that a board member act to ensure that the organization is in compliance with the laws of the land and rules of governing its formation and status.
Board members are expected to exercise those duties in the oversight of seven major areas of responsibility, including:
- Board affairs – Candidate identification, recruitment, orientation, training and evaluation, including the identification of membership needs and management of committee operations;
- Planning – development of the vision and mission statements, and strategic plan monitoring and evaluation;
- Business and Financial Management – fiscal oversight, facilities and property management, insurance and legal matters, information systems and reporting requirements;
- Fund Raising – personal contribution, planning strategy, and assisting with solicitation;
- Human Resources – hire, supervise, evaluate and terminate the executive director; approve personnel policies and procedures and the benefits and compensation plan;
- Communications and Public Relations – approve public relations strategies and serve as ambassadors to the community; and
- Service Delivery – oversee and evaluate service or product delivery and volunteer involvement.