Cultivating Success: Your Legal Duties as a Board Member
As an Oregon nonprofit board member, you hold the key to nurturing the growth and prosperity of your organization. In this post, we will give an overview of the three core duties that will help your organization bloom: the Duty of Due Care, the Duty of Loyalty, and the Duty of Obedience. We will dig into each of those duties separately in the coming posts.
Duty of Due Care
Just as a gardener uses their best judgment to choose the right plants for their garden, board members must exercise their best judgment and common sense when making decisions for the organization. This includes actively participating in the management of the organization, attending meetings, and reviewing important information.
To ensure your organization flourishes, board meetings should be held at least quarterly to review the organization’s financial and programmatic information. By being proactive and engaged, you help lay a solid foundation for the organization’s success.
Duty of Loyalty
A loyal gardener knows that every plant deserves their unwavering attention. Similarly, board members must act in the best interest of the organization, avoiding any conflicts of interest or conflicts of loyalty (such as serving on two boards that are in direct competition). The IRS strictly prohibits board members and other “insiders” from improperly benefiting from the nonprofit’s activities and revenue, ensuring that the organization’s resources are used solely for its intended purpose.
By rooting for the organization and putting its needs first, you help cultivate an environment of trust and integrity. This commitment ensures that the organization can grow and thrive without being infested by personal interests.
Duty of Obedience
“Obedience” here refers to obeying the law. Every successful garden starts with a well-thought-out plan, and so does every thriving organization. Board members must adhere to the organization’s Articles of Incorporation, Bylaws, and applicable state and federal laws.
By following these guidelines, you ensure that the organization stays on the right path, avoiding any legal or ethical weeds that could hinder its growth. Following these rules helps maintain the organization’s credibility and effectiveness.
Harvesting the Fruits of Your Labor
As a board member, your legal duties are the seeds of a successful organization. By exercising due care, loyalty, and observing the laws that govern your organization, you help create an environment where the organization can thrive and reach its full potential. Just as a well-tended garden yields a bountiful harvest, your dedication and commitment will ensure that the organization flourishes and achieves its mission.
For more information about Board duties, review the Oregon Department of Justice Guide for Nonprofit Service, and stay tuned for future posts.
