Part 3:Duty of Obedience

In Board Development, Evaluations, Strategic Planning by Geoff Burns

Duty of Obedience

This is part 3 of a three part series on the duties of board members.

Duty of Obedience deals with the legal issues. Board members are responsible for making sure that the organization complies with applicable laws and regulations as well as its own internal documents and policies. Obedience to the central purpose, ie. mission, must guide all decisions.

Obedience to the law includes making sure all required reporting is complete, compliance with regulatory agencies is adhered to, and annual tax filings are submitted accordingly. Obedience also means that organizations must follow the the bylaws the same as they would federal laws. Ignorance of the laws and organizational documents is unacceptable.

Duty of obedience requires board members to make sure that the resources of the organization are dedicated to the accomplishing the mission. This duty includes prudent and judicious action to make sure liabilities are funded or eliminated.

Ohio Attorney General Guide for Charity Board Members

Three D’s of Board Governance

Legal Responsibilities of Nonprofit Trustees