By Bob Harris, CAE
“What could go wrong? I’m just a volunteer on a board of directors.”
It’s better to ask about risks and protections before accepting a nomination to serve. Directors are trustees of the corporation. They are responsible for governance and the well-being of the organization.
Although organizations are characterized as “nonprofit” and directors are “volunteers,” liabilities can arise. Consider Murphy’s Law: “If anything can go wrong, it will.”
Liability could result from discrimination, copyright violation, harassment, embezzlement or antitrust violations, for instance.
Every organization faces risks. Nonprofit organizations may have some added risks, for example public record requests, election procedures, committee authority and member demands.
Consider these five methods to afford board protection. Every organization is unique. Read the governing documents and understand applicable laws. Be sure to rely on legal, accounting and insurance counsel.