{"id":2730,"date":"2019-02-15T12:09:40","date_gmt":"2019-02-15T12:09:40","guid":{"rendered":"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/?p=2730"},"modified":"2019-02-15T12:09:40","modified_gmt":"2019-02-15T12:09:40","slug":"not-for-profit-liability","status":"publish","type":"post","link":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/blog\/not-for-profit-liability\/","title":{"rendered":"Protecting Board Members From Not-For-Profit Liability"},"content":{"rendered":"

Not-for-profit organisations provide essential social services that benefit communities and their members. These organisations cannot survive without a solid board of directors or trustees assigned to elect officers, adopt policies and make major financial decisions for the organisation. Although the members of the board are often volunteers, there is risk involved in holding one of these positions. Specifically, even when acting in good faith, not-for-profit board members are subject to personal liability, which may affect their personal financial status because of their business decisions. Therefore, it is imperative that your organisation and board members understand the risks involved in your organisation, their responsibilities as board members and the ways in which they can protect themselves from not-for-profit liability.<\/span><\/p>\n

Not-for-profit liability<\/strong><\/span><\/h1>\n

To combat the chance of affecting the personal liability of not-for-profit board members, not-for-profit organisations should assess the risks involved with holding these positions.<\/span><\/p>\n

Your organisation should first develop a volunteer risk management committee to identify all risks and pose solutions to minimise potential harm. In addition, you need to ensure that the board members understand their governance responsibilities.<\/span><\/p>\n

Your not-for-profit should educate its board on their legal duties, fiduciary duties and decision-making roles. Furthermore, the risk committee should ensure the following to reduce the risk of not-for-profit liability:<\/span><\/p>\n