Bylaws of Capitol Hill United Neighborhoods
Nonprofit corporations are created under state law--the Colorado Revised Nonprofit Corporation Act or CRNCA (C.R.S. § 7-121-101 to 137). For the most part, state law determines how they are governed. In addition to what is required by state law, a nonprofit’s articles of incorporation, bylaws, and board policies may provide more specific policies and procedures to govern the organization’s activities. Members of the governing body, typically the board of directors or board of trustees, must be aware of the legal fiduciary duties related to their work: the duty of care, the duty of loyalty, and the duty of obedience.
Colorado law requires directors to discharge their duties to the nonprofit in good faith; with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and in a manner they reasonably believe to be in the best interests of the nonprofit (C.R.S § 7-128-401). Fiduciary duties are intended to ensure a high degree of care and complete loyalty to the nonprofit to protect charitable assets held for the benefit of the public rather than for individuals.
Source: Principles and Practices of Nonprofit Excellence in Colorado
Colorado law requires directors to discharge their duties to the nonprofit in good faith; with the care an ordinarily prudent person in a like position would exercise under similar circumstances; and in a manner they reasonably believe to be in the best interests of the nonprofit (C.R.S § 7-128-401). Fiduciary duties are intended to ensure a high degree of care and complete loyalty to the nonprofit to protect charitable assets held for the benefit of the public rather than for individuals.
Source: Principles and Practices of Nonprofit Excellence in Colorado
