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General Fiduciary Responsibilities

A union is designated as a 501(c)(5) non-profit organization under the IRS regulations. Non-profits are exempt from corporate taxes and leadership of a local union carries a legal obligation to maintain that status. Certain leaders are considered fiduciaries, charged with making sure the organization is carrying out these obligations. Fiduciaries maintain the integrity of the organization by safeguarding the union’s funds and meeting all of the statutory recordkeeping and reporting requirements. They have an obligation to keep members informed. It is important that you determine who has authority to spend union funds or incur liability.