Category: Governance Risk

By asking this question you have passed the first test of becoming a great risk manager! You are asking whether what you want to do is within the mission. In some cases the mission statement may be broadly worded and no changes will be necessary. Often, however, the existing mission statement is too narrow. Your … Continued

Board members are often described as being in the crows nest, looking out on the horizon, while the staff leaders are at the ship’s wheel steering it through the sometimes choppy waters, in the right direction. The job in the crow’s nest is to call the crew’s attention to storms brewing on the horizon. Find … Continued

If your board doesn’t take its responsibility to fund raise seriously, then your organization is at risk. A board has a legal duty of “due care” that involves ensuring that there are enough resources for the organization now, and in the future. If you can’t get your board to accept the old adage, “give, get … Continued

In some states there are laws known as “Sunshine laws” that require groups to open their meetings to the public, however, these laws generally only apply to governmental or quasi-governmental groups. Unless the nonprofit is a governmental entity, there is no obligation to open board meetings to the public. (“Governmental entities” would include school boards, … Continued

There are legal risks in failing to re-elect board members when their term has expired. State laws restrict the terms of board service by requiring that nonprofits hold elections, generally annually, or as designated in the organization’s bylaws. State law usually permits board members to be re-elected after their term has expired, however, each nonprofit needs … Continued