Fiduciary Duty

The fiduciary duty of a non-profit board of directors and committee members refers to the legal and ethical responsibilities they have in overseeing the organization's operations and ensuring it aligns with its mission. Their fiduciary duties typically fall into three key categories:

  1. Duty of Care: Board members must act with diligence and care when making decisions on behalf of the organization. They are expected to stay informed, attend meetings, and make thoughtful decisions in the best interest of the non-profit.
  2. Duty of Loyalty: Board members must prioritize the non-profit's interests above their own personal or professional interests. They should avoid conflicts of interest and act solely for the benefit of the organization.
  3. Duty of Obedience: Board members must ensure the non-profit adheres to its mission, complies with laws and regulations, and stays true to its founding purpose.

duty of loyalty, one of the core fiduciary duties. Board members are expected to prioritize the mission and best interests of the non-profit above personal, professional, or outside interests. Their decisions and actions should always reflect a commitment to advancing the organization’s purpose.

A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interests ahead of their own, with a duty to preserve good faith and trust. The person with the duty is called the fiduciary, and the person to whom the duty is owed is called the principal or the beneficiary. Fiduciary duties include duty of care, loyalty, good faith, confidentiality, prudence, and disclosure. Fiduciaries include estate executors, real estate agents, physicians, attorneys, and financial advisors, all of whom are obligated to act in the best interests of their clients.


Imagine fiduciary duty like being someone’s trusted guide. Whether you’re steering their ship, managing their treasure, or planning their journey, your role is all about loyalty, honesty, and putting their interests first. If you’re careless or decide to prioritize your own needs over theirs, things can go wrong fast. Not only does their ship (or finances, trust, or well-being) take a hit, but you could also face some serious consequences—like being held accountable for the damage, losing your reputation, or even facing legal penalties.So, being a fiduciary is like holding the key to someone’s vault. It’s a role of responsibility, care, and integrity. If you break their trust, it’s not just about losing the key—it’s about being asked to pay for what’s lost inside.

Fiduciary duty is extremely important because it establishes trust and integrity in relationships where one party is responsible for acting in the best interests of another. It applies in various fields, including finance, law, and corporate governance, ensuring that fiduciaries prioritize their clients' or beneficiaries' interests over personal gain.Key aspects of fiduciary duty include:

  • Duty of Care: Acting with competence and diligence to make informed decisions.
  • Duty of Loyalty: Avoiding conflicts of interest and prioritizing the principal's best interests.
  • Duty of Good Faith: Making decisions honestly and transparently.
  • Confidentiality: Protecting sensitive information from unauthorized disclosure.

Failing to uphold fiduciary duty can lead to legal consequences, loss of trust, and reputational damage. It’s not just a legal obligation—it’s a commitment to ethical principles that govern responsible decision-making.

Breach of Fiduciary Duty

Any person or entity with a fiduciary duty who fails to uphold, or fails to act responsibly in fulfilling, his duties, obligations, and responsibilities as fiduciary, has breached his fiduciary duty. Generally, the law requires the fiduciary to restore or repay any losses resulting from a breach of fiduciary duty, and the court may order other remedies, such as additional financial sanctions, and the award of attorney’s fees. The courts in the United States have heard, over the years, many matters involving breach of fiduciary duty.

When Is Self-Dealing a Breach Of Fiduciary Duty?

By reports | April 05, 2023

When Is Self-Dealing a Breach Of Fiduciary Duty?Fiduciaries occupy an extremely important position. Someone else relies on them to manage and administer a valuable asset in which the beneficiary has a stake. A fiduciary’s actions can have a direct financial impact on a beneficiary. If fiduciaries make a mistake or are derelict in their duties, they can cause large financial losses. Those for whom the fiduciary acts have the legal right and ability to take direct action against the fiduciary when they act improperly.If you believe a fiduciary violated their duty due to self-dealing conduct, you should discuss possible legal action with a fiduciary duty lawyer immediately.




Volunteer

At its core, being a volunteer is about offering time, energy, and skills freely to help others or contribute to a cause without expecting payment in return. It's an act of generosity and community spirit. Ideally, a volunteer takes on responsibilities they’ve agreed to, follow through with those commitments, and act in a way that respects the goals and needs of the organization or person they’re helping. In your situation with the webmaster, it sounds like they didn't uphold their end of the deal as a volunteer. That can be frustrating, especially when you’re relying on their contribution. Volunteers are meant to ease burdens, not add to them! If this is something you’re navigating with others in the future, setting clear expectations upfront might help avoid similar issues.