5 (Other) Ways to Practice and Demonstrate Diligence

Practising and Demonstrating Diligence: Taking the Right Steps to Fulfil Fiduciary Duties (Part Two!)

In this Flash training, you’ll discover 5 more practical ways to practice and demonstrate your diligence as a director or officer of a non-profit organization (NPO). You’ll also find concrete tools to help you take the right steps in alignment with your fiduciary duties. Learn how to show that your organization complies with its obligations, bases its decisions on evidence based data, and maintains a clear accountability framework.

A quick reminder: diligence is a duty... but also a mindset

As an NPO director or officer, you have fiduciary obligations. This means acting in the best interest of your organization, guided by three key principles: loyalty, transparency, and of course, due diligence.

This post is a continuation of the last blog entry, where we explored 5 ways to practice and demonstrate diligence. Today, let’s go a little deeper — because diligence is not only about what you do, it’s also about what you can prove.

5 Practical Actions… and the Pitfalls that Can Lead to a Lack of Diligence

1. Understand the legal and regulatory framework

Pitfall: Thinking “that’s for the lawyers” or assuming management already handles it.

Risk: Missing key obligations and exposing the organization to unintended compliance failures.

Tip: Keep a compliance checklist updated regularly by a committee or by management, and make sure it’s reviewed and discussed quarterly.

Impact: Reinforces organizational rigour and demonstrates that the board takes proactive responsibility.

2. Build a consistent operational rhythm

Pitfall: Believing that occasional meetings are enough to “run” the organization.

Risk: Decisions are made reactively, with little strategic context or follow-up.

Tip: Implement a standing agenda. This structure helps balance time between committees, management, and full board discussions.

Impact: Provides structure and supports balanced, collaborative governance.

3. Connect strategy and operations

Pitfall: Treating strategy as a once-a-year conversation that can be delegated.

Risk: Losing the link between the mission, field-level results, and strategic decision-making.

Tip: Annually review expected results with the Executive Director in committee, and adjust strategic imperatives where needed.

Impact: Ensures alignment between intentions and actions while documenting the reasoning behind key priorities.

4. Evaluate the organization’s performance

Pitfall: Thinking financial results alone are enough to assess performance.

Risk: Overlooking key aspects like organizational health, governance effectiveness, staff engagement, and stakeholder satisfaction.

Tip: Set up an annual performance evaluation process, led by the ED Oversight, Evaluation and Compensation Committee, based on organizational data such as operational, financial and strategic results.

Impact: Fosters an organizational culture focused on continuous improvement to help the organization move forward.

5. Listen to beneficiaries and stakeholders

Pitfall: Relying solely on experience or a few isolated comments to evaluate the organization’s impact.

Risk: Making anecdotal decisions with little grounding in actual stakeholder needs or realities.

Tip: Establish permanent consultation structures — surveys, advisory committees, focus groups. What matters most is consistency and structure.

Impact: Demonstrates that the organization does not operate in a bubble. It includes, adjusts, and evolves based on needs, satisfaction, and trends.

A final word

You don’t need to be perfect. But you do have the power to take concrete steps to practice diligence — and to demonstrate it. This isn’t just for large, complex organizations. It’s a mindset of healthy governance, accessible to anyone willing to step up with intention and care.

Remember: you’re not in this alone. By structuring your approach, you make it easier for others to do the same. And together, you raise the level of trust, coherence, and impact your NPO can achieve.