Maintaining confidentiality also means that board members must maintain the confidentiality of any personal or sensitive information they receive while serving on the board. In the course of their work on the Board of Directors, Board members sometimes have access to personal or sensitive information about their members and other Board members. Sensitive information may include health, employment, financial, or other personal information. In accordance with their fiduciary duties, members of the Board of Directors should not disclose information received in the course of their position on the Board. A breach of confidentiality can occur for a variety of reasons. Three of the most common are: disclosure of confidential information discussed at a board meeting, disclosure of personal data, and conflicts of interest. The first step in drafting a privacy policy is to identify the reasons why the board needs it. The following section should specify to whom the policy applies, including board members, employees, committee members who do not sit on the board, the advisory board, and others. Fiduciary responsibilities are the primary responsibilities of board members, which is why board members should develop a privacy policy as soon as possible. Privacy issues don`t happen often, but if they do, they can damage the company`s reputation.

In turn, a bad reputation negatively affects donations, so it`s worth taking the time to draft and implement a privacy policy before such a time comes when the board should rely on it. The Secretary of the Board should add information about the Privacy Policy when guiding Board members and ask new Board members to sign a statement indicating that they have read it and have agreed to abide by it. Maintaining confidentiality is one of the fiduciary responsibilities of every member of the Board of Directors. It will be easier for board members to fulfill this responsibility if they can rely on a formal written policy. The Board must ensure that Board members fully understand that once the Board approves a decision, it becomes a decision of the entire Board. All members of the board of directors must comply with it. If board members disagree with a confidentiality decision, they can report their rejection. Members who seriously violate the Privacy Policy or any other policy may choose to resign from the Board of Directors.

Fiduciary responsibilities mean that board members must act honestly and place the best interests of the organization above their own interests. One of the components of good governance is the full and open disclosure of information in the conference room. If board members cannot trust each other to maintain trust, it negatively affects the governance of the nonprofit. Board members typically have an extensive network of members, network staff, or others to whom they have a certain level of loyalty. While this is a good thing, it often leads to a conflict of interest when a board member shares information they have obtained in the course of their job or position, or when board members heat up issues outside of the board meeting time that the board has already decided. A privacy policy should specify which matters are considered confidential. Because nonprofits vary widely in their missions and activities, this content is unique to the organization. Boards should also specify in writing the procedure that board members should follow when they wish or need approval to disclose confidential information. What happens when a CEO tries to have a low attendance at board meetings? Board meetings of not-for-profit organizations are generally open to the public. However, board members may want to discuss certain topics in private. The council may go to the executive session and ask the guests of the council to leave during this part of the discussion. Reasons for moving to the management meeting may include the need to discuss employee discipline, an employment contract, or performance or compensation issues.

Not-for-profit boards have a lot of work to do to create their bylaws and by-laws. Statutes are usually a work in progress. One of the issues that boards often put on the back burner is the creation of a privacy policy. Often, the boards of directors of nonprofits do not devote their attention to writing a privacy policy until a crisis situation raises its ugly head. This puts board members in the unfortunate position of making an effort to handle a delicate situation without a roadmap. These events can also trigger an instinctive reaction from the board of directors to form a new privacy policy in a hurry. Once the Board of Directors has finalized the Privacy Policy, it must formally approve it at a Board meeting. The Secretary of the Board of Directors should link or combine it with the organization`s Privacy Policy and Conflict of Interest Policy. .