Liability Bill Protects Nonprofit Board MembersTracy Thompson
Remember That You’re Personally Liable: As a nonprofit board member, it’s paramount that you understand you have personal liability for the custody of the nonprofit’s assets. To protect yourself from the liability… Measuring Your Nonprofit's Success: To track your nonprofit's success, you'...
Nonprofit board members must take their voting privileges seriously to avoid personal liability and liabilities for the organization. It’s vital that they understand all the laws and bylaws and fulfill their board duties accordingly. Using a board management solution helps ensure these actions are com...
Without question, nonprofit organizations need liability insurance to protect against unforeseen risks.BoardEffect, our board management solution, helps nonprofit directors and leaders stay abreast of liability insurance policies with its comprehensive, easy-to-access document management feature. Customizable wo...
Within the nonprofit context, bylaws could provide for exculpation in order to protect directors and officers from personal liability arising from their nonprofit board service. Through such mechanism, their personal assets could be protected from potential liability and loss. A basic exculpation contrac...
The nonprofit is also protected from legal liability and have investors take the business seriously as it's not just a charity. Most nonprofits set up as a C corporation to optimize their taxes. A nonprofit can become an owner of an LLC or go into a partnership. The parent nonprofit's ...
Nonprofit Law Made Easy presents in-depth discussions on such hot topics as acquiring and maintaining tax-exempt status, reporting requirements, charitable giving, disclosure requirements, unrelated business activities, fundraising, corporate governance principles, and board member liability. It also includes...
Under well-established principles of nonprofit corporation law, a board member must meet certain standards of conduct and attention in carrying out his or her responsibilities to the organization. Several states have statutes adopting some variation of these duties which would be used in court to det...
Shared control.Because a nonprofit has no shareholders, determining control of the organization can be more difficult. Some organizations, like public charities, are required by law to operate under a shared governance model through which a diverse board of directors runs the corporation. ...
which includes any person receiving compensation from the nonprofit for services rendered within in the past 12 months and such a person's close family member. Also, directors must be present at a board meeting to vote and cannot vote by proxy. The directors present at a board meeting can on...