5 Ways to Practise and Demonstrate Diligence : Taking The Right Actions to Fulfil Your Fiduciary Duties

Practising and Demonstrating Diligence: Taking the Right Actions to Fulfil Your Fiduciary Duties

The word diligence might sound rigid at first — a little legal, a little cold. And yet, when you take a closer look, it’s deeply human. It speaks of care, presence, attention, and responsibility — for example, toward an organization. If you’re a board member or officer of a nonprofit, this word directly concerns you. So here’s an invitation to a bit of introspection. Because diligence isn’t just something you have to do — it’s also something you can show. And sometimes, that’s where it gets tricky.

So, what exactly is diligence?

In a nonprofit context, we talk about fiduciary duty. Yes, it’s a legal concept — but it’s also an ethical posture: to act in the best interests of the organization, with care, loyalty, and transparency. Being diligent means acting the way a reasonable and prudent person would in similar circumstances. You don’t need to be perfect — just attentive, engaged, and informed.

5 Key Actions… and the Pitfalls to Watch For

Here are five practical ways to practise and demonstrate your diligence — along with the subtle traps that might get in the way:

1. Ask questions about reports and issues

The pitfall: Thinking, “I don’t have the expertise,” or “I don’t want to slow the group down.”

The risk: You nod along but don’t really understand. Diligence isn’t about knowing everything — it’s about being willing to ask.

The tip: Read the documents, ask questions, request clarification before making decisions. It’s not your role to have all the answers — it’s your role to ask the right questions.

2. Encourage open discussion during meetings

The pitfall: Believing an efficient board is one that’s quick and always unanimous.

The risk: Too-quick consensus may hide a lack of true reflection.

The tip: Encourage dialogue, welcome differing viewpoints, and seek out diverse perspectives. A well-facilitated debate is a sign of diligence — not division.

3. Assign committees to dig deeper into issues

The pitfall: Letting committees work in isolation, without clear direction or follow-up.

The risk: Without a clear mandate, proper minutes, or feedback, diligence can disappear without a trace.

The tip: Give committees a clear mandate to explore complex questions and report back to the board. Committees aren’t a way to avoid responsibility — they’re tools to strengthen collective work.

4. Regularly review corporate documents

The pitfall: Saying, “We already adopted this” or “It’s not urgent.”

The risk: Outdated documents can pose ethical, legal, or strategic risks.

The tip: Revisit policies, bylaws, and statutes regularly. Up-to-date documents show your organization is in control and proactive.

5. Ensure optimal attendance and engagement

The pitfall: Being physically present but mentally checked out. Attendance isn’t just about showing up — it’s about being fully present.

The risk: Low active participation can weaken discussion quality and lead to decisions without sufficient insight or challenge.

The tip: Show up, participate, stay involved. Your consistent presence sends a clear message: you take your role seriously.