Standard 3: Board Accountability
The land trust board acts responsibly in conducting the affairs of the organization and carries out the board’s legal, financial and other responsibilities in an ethical manner.
Background
Volunteers serve on a board for many reasons, but most often because they enjoy working with others to carry out the mission of the organization. The board has legal and ethical responsibilities to maintain the public’s trust and the land trust’s credibility. Every board member must understand these responsibilities. A board member who does not properly fulfill such duties or responsibilities may incur personal liability. To fulfill their duties, board members must become knowledgeable about their duties and responsibilities and the activities of the organization. A person who is not able to assume the responsibilities of a board member should not be on the board, but could serve the land trust in some other way.
Relevant Law
- Income Tax Act, SC 1985, c. I, s. 149.1 (6.3);
see also Canada Revenue Agency policy interpretations at
- Society Act, RSBC 1996, c. 433, s. 27.
- Canada Corporations Act, RSC 1970, c. C-32.
- Society Act, RSBC 1996, c. 433.
- Canada Corporations Act, RSC 1970, c. C-32.
PRACTICE
B. Board Composition
The board is of sufficient size to conduct its work effectively. The board is composed of members with relevant and complimentary skills, backgrounds and experiences who are committed to the mission of the land trust and to board service. There is a systematic process for recruiting, training and evaluating board members.
Background
A land trust's board needs to be of sufficient size and diversity to minimize conflicts of interest, qualify the organization for charitable status, provide credibility in the community, and ensure effective operations. A land trust can help ensure recruitment of good directors by standardizing board recruitment and evaluation methods, usually through a nominating or board governance committee. It is helpful for the land trust to provide board members with written expectations or a job description to explain the role of the board member, expectations for board service and evaluation processes.
Assessment Questions
BC Assessment Questions
- Are the board members a sufficiently diverse cross section of the community with the breadth of expertise to provide adequate guidance?
- Are there enough board members to fulfill the Land Trust bylaws and policies?
- Are all prescribed board positions filled? If no, is there a plan to fill the necessary positions with suitable candidates?
- Does the land trust have a policy to recruit, train, and evaluate board members?
- Is this policy being used effectively? If no, how should the policy be amended to be more effective, or how can it be more effectively implemented?
CLTA Assessment Questions
- How many board members does the land trust have?
- How does the board recruit, train and evaluate its board members?
