Governance principles:
Principles of fairness, transparency,
responsiveness, accountability, resilience,
communication, and disclosure for public
companies are also relevant to NPOs.
Governance Mechanisms
The corporate governance mechanisms of
NPOs are different from those of public
companies. The primary governance
mechanisms of NPOs are their governing
and advisory boards.
The NPO’s internal control structure should
also prevent and detect errors,
irregularities, and fraud, particularly
employee embezzlements.
Duties of the Board of
Directors/Trustees
1. Duty of obedience
2. Duty of care
3. Duty of loyalty
Board Committees
1. Audit committee
2. Executive committee
3. Development/fundraising
committee
4. Finance committee
5. Nominating committee
6. Program committee
7. Personnel committee