How Board Members can Avoid Becoming the Target of a Law Suit

  1. Insist on regular and frequent board meetings

  2. Regularly attend all officially called meetings of the board of directors.

  3. Insist on meaningful meetings that focus on results of the mission's operations and programs

  4. Exercise general supervision over all the affairs of the mission

  5. Use reasonable diligence in making decisions on behalf of the mission

  6. Use both "business sense" and "sanctified common sense" when deciding on the mission's organizational policies

  7. Carefully evaluate the mission's financial reports

  8. Require an annual audit of the mission's financial records by a Certified Public Accountant

  9. Authorize only legitimate corporate indebtedness

  10. Carefuly review any transactions between board members and the mission and between the mission, its staff, and/or
    board members

  11. Establish a policy for handling donor restricted funds

  12. Be sure that regular deposits of employee withholding taxes are being made

  13. Maintain a good credit standing for the mission by insisting on regular timely payment of debts

  14. Adopt and follow sound business policies and practices

  15. Avoid self-serving policies and all real and potential conflicts of interest

  16. Don't ignore possible warning signs that something might be wrong

  17. Follow through by thoughtful inquiry and investigation

  18. Be sure the mission has engaged competent legal counsel

  19. Get to know the mission, its Executive Director, and other board members with whom you serve

  20. Perform a regular annual evaluation of the mission's Executive Director

  21. Be involved in the selection of competent officers and board members

  22. Set up an executive committee that examines and carries out board policie

  23. Require written reports of all active committees at board meetings

  24. Periodically review the responsibilities of the board's officers and review their performance

  25. Review periodically the mission's insurance policies

  26. Insist on Directors and Officers Liability Insurance to cover board members