Presented by B. C. Conference Administration

1. Church Board Orientation Presented by B. C. Conference Administration

2. Practical Duties of Board Members • Support – your role is to help the local church function properly and to accomplish its mission • Confidentiality – items of a general nature can be shared with non-board members. Confidential items should never leave the board room

3. Practical Duties of Board Members Representation from church leadership: • You are a member of the board because you represent a specific ministry of the church. Although you feel a responsibility for that specific area, your attitudes and wishes cannot be governed by those feelings

4. Practical Duties of Board Members • The work of all the ministries in the church should always be in mind. When a decision is sought between a narrower and a broader view, the broader view should usually prevail

5. Practical Duties of Board Members • Loyalty • Anyone can present an opinion during board sessions; however, if an action contrary to your particular view is voted, you should not criticize the actions of the board outside the meeting • Once a decision is made, all members should stand by it. A dissatisfied member is, however, permitted to ask for reconsideration of a vote

6. Fiduciary Duties and Responsibilities • Duty of knowledge • Duty of care • Duty to perform with diligence and skill • Duty to act with prudence • Duty of diligence • Duty to avoid conflict of interest

7. Duty of Knowledge • Understand how to put purpose into practice – Mission, Vision & Values • Constant review to ensure raison d’être

8. Duty of Care • Act in accordance with minimum standards: • Honesty • Good faith • Best interests of the Church

9. Duty to Act with Diligence and Skill • Board members are expected to attend meetings and be prepared for the business (legal implications) • Make reasonable inquires into the day-to-day management of the church, particularly in decision-making • Board members with special skills have a higher responsibility when dealing with their area of expertise

10. Duty to Act with Prudence • Prudent directors are cautious and careful, trying to foresee the consequences of a course of action • Avoid taking unreasonable risks such as: • Approving expenditures when the church lacks the funds to cover them (deficit spending)

11. Duty of Diligence • Act in the best interests of the Local Church • Active involvement • Be fully informed • Thoroughly acquainted with the purpose and policies of the church organization • Review agenda and material • Attend meetings and committees • Prepare to discuss business • Vote on all matters

12. Duty to Maintain the Organization’s Legal Status • Ensure compliance with NAD & BC Conference Policies • Ensure that financial records, bank accounts, and bank records are maintained

13. Duty to Avoid Conflict of Interest • Interest of your local church always comes first • Inform when in a conflict of interest • Never use the church’s funds, resources, or influence for personal gain

14. Conflict of Interest • Why be concerned about it? • Law - Canada Corporations Act • Church policy • Public perception • Expectations of employees/volunteers

15. Conflict of Interest • There is nothing wrong with a conflict of interest provided that disclosure is made: • Fully and honestly • Promptly to each Board Member • Including the specific form of interest • Including the benefit that would be received

16. Conflict of Interest • Remember: “If it is very good for a person, most likely it is not good for the organization” • Not an accusation • Does not imply judgment has been compromised

17. Conflict of Interest – Definition • NAD WP - ”such a substantial personal interest in a transaction or in a party to a transaction that it reasonably might affect judgment” • Other “exercise of an official power or duty at the same time knowing that in the performance of the duty or exercise of power there is opportunity to further own private interest”

18. Conflict of Interest – Definition • It is a conflict if it is a breach of an obligation to the organization • It is a conflict if it advances one’s interests in a way that is harmful to the integrity or mission of the church

19. Conflict of Interest • Possible Consequences • Unfavorable press coverage • Financial loss • Criminal prosecution • Civil legal action • Disciplinary action • Damage to the reputation of the church • Damage to your reputation • Loss of employment

20. Conflict of Interest • Cases fall into three categories. Those that: • Require Disclosure • Require Prior Approval • Are Prohibited

21. Conflict of Interest-Examples • Possession of significant financial interest in business involved with the church

22. Conflict of Interest-Examples • Acceptance of gratuities or favours from individuals • Associating your name or work with any external activity in a way that implies endorsement by the church

23. Conflict of Interest-Examples • Unauthorized use of confidential information obtained through your position such as: • Personnel matters • Donor information

24. Conflict of Interest-Examples • Personal information about employees • Involvement with any company that does business with the church

25. Conflict of Interest-Examples • Owning or leasing property with the knowledge that the church has an active or potential interest in it • Making use or disseminating information acquired through employment for personal profit

26. What to do • Disclose in writing the nature of your conflict • If approved, continue

27. What to do • Withdraw from decision-making process • No voting • No participation in consideration • No discussion • No presence