Literacy Basics - Community Literacy of Ontario

The information provided in this section is not meant to discourage or intimidate individuals from getting involved in non-profit organizations, but rather to assist them in being informed. In the end, using common sense and being honest, knowledgeable and cautious will go a long way toward avoiding risk and liability. The information provided in this section is not legal advice. Any questions or concerns should be discussed with a legal professional.

Both Volunteer Canada (www.volunteer.ca) and the Canadian Society of Association Executives (www.csae.com) have published clear-language pamphlets outlining details about risk management, duties and liabilities for directors of non-profit organizations. Briefly, the basic duties of directors are:

The duty of diligence (also referred to as fiduciary duty) — to act in good faith and in the best interest of the organization through such actions as:

• Staying informed by reading minutes, agendas and support material
• Attending meetings regularly and voting on issues brought before the board
• Being knowledgeable about the policies and operations of the organization

The duty of loyalty—to place the interest of the organization first through such actions as:

• Avoiding and/or declaring conflicts of interest
• Representing the organization in a positive manner
• Respecting confidentiality

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