The Board Accountability Procedure helps protect Directors and the non-profit agency from potential lawsuits related to possible conflict-of-interest situations, contracts or various forms of compensation, and the fiscal integrity of the organization.
The fiduciary status of non-profit Board members brings with it specific legal liabilities. While it may not be possible for the Board of Directors to manage and direct all phases of the agency’s business, it must assume responsibility for the final decisions and results. (2 pages, 502 words)
The Board of Directors should delegate responsibilities to its “agents,” such as committee chairpersons, officers or the Executive Director, in an orderly, logical manner. A director who acts in good faith and in the best interests of the corporation is generally protected from personal liability for any errors in judgment.