Board Volunteering
The commitment, knowledge and support of individual Canadians are what drives non-profit and voluntary organizations. Almost all non-profit organizations are governed or led by voluntary boards of directors. Their roles can vary from organization to organization, but in general, boards are responsible for providing leadership and strategic direction to the organization based on the organization’s mission/mandate; and governing the affairs of the organization on behalf of its shareholders (in the case of a for-profit corporation) or its members (in the case of a non-profit organization).
Some boards provide organizational input, helping out with the day-to-day operations, while other boards prefer to operate from a governance position, with a distinct focus on the direction and growth of an organization in partnership with staff.
Boards can vary greatly in their size and composition. Some board members come from a common community, while other boards provide a national perspective, with representatives from individual provinces or regions.
Boards of Directors and Advocacy
Increasingly, voluntary organizations recognize that playing an active role in influencing government policy is key to achieving their missions. At the same time, government acknowledges that the voluntary sector has a valuable and crucial role to play in shaping effective public policy. Yet many voluntary boards of directors face challenges regarding how to engage in policy dialogue—and often lack in the skill set to do so successfully.
In response to this, Volunteer Canada has developed Advocacy on the Agenda: Preparing voluntary boards for public policy participation to build capacity and support voluntary organizations and their boards of directors in their policy dialogue efforts.
Click here to download this resource.
Click here http://volunteer.ca/en/catalog/advocacy-agenda-preparing-voluntary-boards to purchase.
For more information on training available on this resource, click here.
Directors Liability and Risk Management
Despite their commitment to countless causes and organizations, many board members may be unaware of the legal ramifications of their volunteer work and issues surrounding personal liability. This liability applies to all non-profit organizations—including clubs, associations, societies, leagues, committees and charities.
The basic responsibility of directors is to represent the interest of the organization, their members and their constituencies in directing the affairs of the organization, and to do so within the law. In their role as ‘trustee’, directors must adhere to three basic principles:
1.Diligence: to act reasonably, prudently, in good faith and with a view to the best interests of the organizations and its members;
2.Loyalty: to place the interests of the organization first, and to not use one’s position as a director to further private interests;
3.Obedience: to act within the scope of the governing policies of the organization and within the scope of other laws, rules and regulations that apply to the organization.
A volunteer director who fails to fulfill his or her duties as outlined above may be liable.
The term ‘liability’ refers to the responsibility of directors and organizations for the consequences of conduct that fails to meet a pre-determined legal standard. Usually, the term ‘consequences’ refers to damage or loss experienced by someone, and being responsible for such consequences can mean having to pay financial compensation.
A director or officer can no longer rely on the assumption that, provided they do their job to the best of their ability, they are free from personal risk.
Directors’ and Officers’ may be held personally liable for claims arising from activities of volunteers and/or staff in the name of the organization, employee discrimination, wrongful dismissal and breach of duties as described previously.
Claims may be made by: volunteers, employees, government bodies, suppliers, customers and general public
Volunteer Canada has created a resource that helps inform board members about their legal duties and obligations and that offers a practical 'prevention checklist' to help minimize personal liability. Click here to download this resource.
Some boards may choose to protect themselves by obtaining Directors and Officers Liability Insurance. For further information on the national Director’s and Officer’s Liability Insurance program, click here – Know the legal risks of being a volunteer board member
