A nonprofit organization's finance committee is listening to the advice of a financial expert on how to manage the organization's investments. The board is practicing which duty?

Question

Quizplus · Accepted Answer

The finance committee listening to the advice of the financial expert is an example of the duty of care, which requires board members to exercise prudent judgment and reasonable care in decision-making. The duty of loyalty requires board members to act in the best interests of the organization, while the duty of obedience requires board members to ensure the organization complies with applicable laws and regulations. Investment is not a duty, but rather a function or action that the finance committee may take as part of fulfilling their duties of care, loyalty, and obedience.

A Nonprofit Organization's Finance Committee Is Listening to the Advice