Four Fiduciary Duties of Church Boards

One of the most misunderstood legal principles in nonprofit governance is the origin and meaning of "fiduciary duties" and their application to the officers and directors of churches and other nonprofit organizations.

Officers and directors of churches—most commonly understood to be church board members or members of church finance committees with decision-making power—must bring intentional care and oversight to the financial affairs of their churches. Whether in the for-profit or nonprofit world, there are examples of corporations or organizations that ran aground because their officers and directors either neglected to learn the financial workings of their organizations or looked the other way—or even worse, led or aided malfeasant activities. The costs of these transgressions are substantial to the organizations, but also can prove legally and financially damaging ...