The role of board of directors cannot be ignored because it governs a charity as a body. It is upon the board of directors to control the organization’s affairs depending on the fiduciary duties laid down by the non-profit corporation law. With the main element role of those director’s being stewardship, being loyal and being caring alongside deliverance of duties with trust is an essential.
The work delivered with due care involves the board acting with proper judgment based on informed decisions and common sense. The directors need certainly to competently utilize their power keeping the charity’s interest at heart. Which means that that they need to participate actively and enquire reasonably. To participate actively the board must remain current when it comes to performance and dealings of a charity. Consequently the directors’ should attend meetings and evaluate reports that the senior management has submitted. Directors must be people who have a capability of earning decisions regarding issues affecting the charity.
Loyalty is also among the crucial aspects of the duties delivered by the board of directors. The role performed by the board of directors in this instance is to deliver loyalty that is undivided and acting keeping in view the organization’s interest. It is not guaranteed that directors will personally benefit from the information that they gain through their positions. When a director achieves benefits which are undeserved, he’s penalized by IRS. Charities are advised to own policies which are written to avoid conflicts of interests.
The next duty of the board of directors is towards obedience. The directors are anticipated to obey federal and state laws related to charity when conducting their business. 香港慈善團體 Others which are included are IRS regulations along with requirements for income tax filings, state registration regulations and charitable gaming laws.
The organization’s effectiveness and health is the responsibility of the board. The main duties here include establishment of policies and objectives, approval of strategic plans, management of financial resources and selection and evaluation of senior staff. It is also the role of the board to enhance people image of the charity and to judge its own performance. One of the important tasks of those boards is selection of the CEO whose responsibility involves supervision of the organization’s daily operations.
It is upon the board to keep corporate records. Additionally, they’d also be needed to amend bylaws of the charity whenever needed. Minutes of meetings of regularly scheduled and annual general meetings must be maintained.
When it comes to liability, board members which are volunteers are protected by what the law states through what is termed as qualified liability. If they violate the role of board of directors, there is no-one to take them to court. However, in many states, protection is just offered when the legal status of the organization has been appropriately maintained by the board. This type of board also ought to own complied with every legal requirement. Once the federal tax law has been violated with a charity organization, the directors may assume professional liability through IRS.