The boards of all nonprofit organizations, including associations, must fulfill three essential legal duties:
- the duty of care (utilizing prudence when making decisions)
- the duty of loyalty (providing allegiance to the organization)
- the duty of obedience (ensuring that the organization complies with applicable laws and carries out its mission)
The Legal Duties of a Board
These three duties classically define the standards of conduct for board governance. But is that enough? In today’s rapidly changing technology and socioeconomic environment, the board needs something else. While the three duties listed above are critical, they are rooted in the past or present. Another duty needs to be added, one that is forward-looking, one that’s geared to the future. In an article from Associations Now, Jeff De Cagna cited the duty of foresight as “a higher standard of responsible board conduct grounded in the affirmative choice to look continuously toward the future.” According to De Cagna, “Boards need to understand as much as possible about the plausible impact of the forces of societal transformation and learn how to harness them for the benefit of their organizations and stakeholders.”
Whether it’s during the strategic planning process or in everyday decision making, board members need to be aware of the consequences of their actions, not only in today’s environment, but also in anticipation of future changes that may affect their members or their revenue stream, either adversely or positively.
Whether it’s reacting to developing trends in cyber or meeting security or monitoring global and cultural changes, boards and staff must work together to navigate potential crises and uncover future opportunities. Embracing change and never being satisfied with the status quo are two of the most important characteristics board members should have in order to provide the best leadership for their associations.