While directors’ fiduciary obligations in the for profit sector has been the subject of considerable academic writing and, indeed, lawsuits, the principles that inform directors conduct and responsibility in that sector apply equally to the not for profit sector.
We can expect to see a growing trend by which directors of not for profit organizations and charities will be watched more closely in their conduct and the decisions they make. As the not for profit and charity sectors grow in size and importance in Canada, it is reasonable to assume that decisions, conduct and operational results will be monitored by members, donors and government oversight.
There are over 170,000 charitable and not for profit organizations in Canada. The CRA has registered 85,000 of these as registered charities.
The recent paper Charities in Canada as an Economic Sector published by Imagine Canada[1] provides an important analysis of the growth of … Continue reading “Directors’ responsibilities – Heightened awareness and standard”