According to NAC 116.405, what must CIC board members obtain when practicable?

The requirement for Community Interest Community (CIC) board members to obtain at least three bids when practicable is rooted in promoting transparency and ensuring that the community receives the best value for services and contracts. This practice encourages competitive bidding, which can lead to better pricing and quality of services, fostering trust within the community and demonstrating due diligence by the board in its financial decisions.

By obtaining multiple bids, the board can effectively compare different proposals and make informed choices. This is particularly important for larger projects or expenditures, where the potential for significant variance in cost and service quality can impact the overall health of the community association.

In contrast, the other options, while relevant in broader contexts of governance and financial oversight, do not specifically align with the mandates outlined in NAC 116.405 concerning the actions required of CIC board members. For example, registering with the Financial Institutions Division or posting a fidelity bond, although important for certain financial safeguards, do not address the competitive procurement process essential for community expenditures. Compliance with the provisions of the Nevada Non-Profit Rulebook pertains to overall organizational compliance but does not specifically relate to the requirement for obtaining multiple bids.