Fiduciary Responsibilities
Grasp the legal duties you owe your nonprofit as a steward of its trust.
For: Nonprofit board members
What you’ll learn
- Understand the duties of care, loyalty, and obedience
- Recognize and avoid conflicts of interest
- Apply the business judgment rule and protect against personal liability
- Make decisions that meet your fiduciary standard
Screen your volunteers for $5
VolunteerBadge runs FCRA-compliant background checks for just $5 — with identity verification built in. No monthly fees, no contracts.
Create a free account →Course outline
- 1
What "fiduciary" actually means
5 min
- 2
The Duty of Care
6 min
- 3
The Duty of Loyalty & conflicts of interest
6 min
- 4
The Duty of Obedience
5 min
- 5
The business judgment rule & personal liability
6 min
- 6
Board vs. management: governing, not running
5 min
- 7
Red flags & putting it together
5 min
Sources & further reading
- National Council of Nonprofits — Board Roles and Responsibilities (duties of care, loyalty, obedience)
- National Council of Nonprofits — Conflicts of Interest
- BoardSource — Legal Duties of Nonprofit Board Members
- Internal Revenue Service — Governance and Related Topics — 501(c)(3) Organizations
- U.S. Congress — Volunteer Protection Act of 1997 (Public Law 105-19)
This course is educational and provides general information about the Fair Credit Reporting Act and volunteer-screening best practices. It is not legal advice. Laws vary by state and change over time — consult a qualified attorney about your organization’s specific obligations.