Four Things That Every Not-For-Profit Director Should Know

Becoming a director of a not-for-profit corporation can be a terrific way to contribute to the community and support important causes and organizations. However, it is important to understand that this role comes with inherent legal duties, obligations and risks. Following is a brief summary of the core duties and obligations imposed upon every director of a Canadian not-for-profit corporation. (Note: This discussion is based on the provisions of the federal Corporations Act; somewhat different rules may apply to not-for-profit corporations that exist under provincial and territorial corporate statutes.)

1. Management of the Corporation
– The board is responsible for the control, management and governance of the corporation and its affairs.

To properly discharge this duty, the board must ensure that the basic objects of the corporation are carried out and that its activities do not fall outside its objects. At a minimum, the directors must be (or become) familiar with the