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This article, by Linda B. Miller of the Volunteer Trustees Foundation, clarifies the key laws that impact not-for-profit boards. Trustees and directors must ensure that each decision made concerning the use of assets furthers the organization’s public purpose. Not-for-profit boards also have a legal duty to exercise diligence in making decisions involving charitable assets. Furthermore, board members are precluded from using their position to enrich either themselves, their families or their businesses at the expense of the not-for-profit entity.
(Linda B. Miller, Volunteer Trustees Foundation)