Fried & Davis - Board of Directors

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What is the function of the board of directors?

Setting policy, objectives and general direction for the nonprofit organization.

Can family members be on the same nonprofit board of directors?

Yes. This is often the case with private foundations. Note that in most jurisdictions, three directors are required for a nonprofit corporation.

Why is it a bad idea to have a close board?

It will likely subject the nonprofit organization to heightened scrutiny from government officials, particularly when they are concerned about private inurement or private benefits.

Can members of a nonprofit board vote by proxy?

No.

What should be documented in the minutes of nonprofit board meetings?

The minutes should reflect all material subjects discussed at the meeting. Note that statements that are legally incriminating, defamatory, or misrepresentations of fact should not be incorporated into the written minutes.