Legal Duties and Liabilities of Directors and Officers of Charities and Not-for-Profits and Risk Management

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1.The Rights and Powers of a Director in Exercising Due Diligence

•Corporate authority

–Directors need to know governing documents of the charity or not-for-profit organization

–Directors must not authorize ultra vires activities

–Membership approval may be required for certain activities

–Amendments to governing documents may be necessary

J. DUE DILIGENCE IN OPERATIONS