As we have discussed in earlier posts, many nonprofit board members volunteer for board service without understanding their official role and legal duties. The Minnesota Attorney General’s Office has published a simple guide that every nonprofit board member needs to review, preferably before their sign-up for board service.
Below, I have highlighted some of the key points, but encourage you to take a look at the actual publication.
Board members (directors) of nonprofits in Minnesota “must be active, informed, and engaged, as they are considered fiduciaries—a term used for individuals who are in a position involving trust”. Specifically, they have the fiduciary duties of care, loyalty, and obedience to the law.
Stay tuned for upcoming posts where we will discuss each of these specific fiduciary duties.