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

Question

Quizplus · Accepted Answer

The duty of care requires nonprofit boards to exercise reasonable and prudent oversight over the organization's finances, including the management of investments. By listening to the advice of a financial expert on how to manage investments, the finance committee is fulfilling this duty. The duty of investment does not exist, while the duties of loyalty and obedience relate to other aspects of nonprofit governance.

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