The agent's acts, if made with authority , are binding upon the principal just as if the principal had performed them himself or herself. Both employees and volunteers can be agents for nonprofit corporations. Examples of agency relationships are everywhere, but the most common is the relationship between an employee and an employer. This area of agency has given rise to a whole area of law, called employment law, that is discussed later in this Chapter. Other agency relationships are discussed here.
Directors are agents for the nonprofit corporation.
They are persons authorized to act, within the limits of their authority , for the nonprofit corporation as principal. As agents, they owe certain fiduciary duties to the nonprofit corporation and the members of the nonprofit corporation. Those fiduciary duties are discussed later in these materials. Officers of a nonprofit corporation are agents for the nonprofit corporation as well. When a nonprofit corporation treasurer signs a check, she is not signing the check herself but is signing it as agent for the nonprofit corporation.