Who are the fiduciaries of a charitable organization?
The principal fiduciaries of a charitable organization are the directors. The officers are also fiduciaries. Other fiduciaries may include an employee who has responsibilities similar to those of an officer, such as a chief executive officer or a chief financial officer who is not officially a director or officer. Outsiders, such as people who are hired to administer an endowment fund or pension plan, are fiduciaries with re- spect to the organization. Each of these individuals has what is known as fiduciary responsibility (Q 1:19). Q 1:22 What happens as the nonprofit organization grows, achieves a higher profile, and needs to add individuals to the board? How do those who created the entity retain control of the organization? After all their hard work, they definitely don’t want some other group to run off with the organization. That is certainly true. This is a very common problem. An illustration is an organization that provides scholarships. Over time, the gift support and scholar
