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Duty of Prudent Care

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The duty of prudent care requires directors to exercise their responsibilities in good faith and with the diligence and skill that a prudent person would under the same circumstances. This prudent care requires carefully made decisions relative to both expenses and revenues, including generation of revenue by fundraising.

Use of development, fundraising, campaign, and other committees to oversee fundraising is an excellent means to satisfy the duty of care responsibility (see Fishman et al. 2015). State law supports prudent delegation of work to committees and independent counsel who are qualified and fulfill their assignments. A helpful resource for planning and evaluating governance and legal best practices is Independent Sector's The Principles for Good Governance and Ethical Practices: A Guide for Charities and Foundations.

Achieving Excellence in Fundraising

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