Introduction
The third fiduciary duty is duty of obedience. This lesson will outline this duty and offer expectations for board members.
Definition & Meaning
The duty of obedience requires board members to comply with the applicable federal, state, and local laws, adhere to the organization’s bylaws and policies, and serve as guardians of the organization’s mission. It also includes honoring donor intent. Some states have additional requirements or different titles. We encourage you to look up the laws of your own state. https://boardsource.org/resources/legal-duties-nonprofit-board-members/
See the earlier lesson Hierarchy of Law for an explanation of which laws apply.
Board Members Are Expected To:
- Abide by governing documents, mission, procedures, state and federal law
- Learn the law when in doubt
More on the duty of obedience can be found at https://www.doj.state.or.us/wp-content/uploads/2022/06/guide-nonprofit-board-service.pdf (page 8)