Not-for-profit healthcare organizations are usually exempt from federal taxation. Tax-exempt status of healthcare corporations is coming under increased scrutiny as they diversify their activities. Governing Boards Duties Include: holding meetings, establishing policies, being financially scrupulous, providing adequate insurance, & paying taxes where required by law.

Questions:

1. Describe how a corporation derives its authority.
2. Explain what is meant by fiduciary responsibility.
3. Discuss corporate organization & committee structure.