4 Ways to Protect Yourself If You Sit on a Non-Profit Board

1. Understand what you’re responsible for.
   You’ll want to understand the details of how your non-profit operates, as well as what you’ll be responsible for specifically. Make sure you know the laws – state and federal – and ensure that the non-profit is following them completely.
   
   

2. Get to know the staff and the location(s).
   Many lawsuits come from within – employees or volunteers who don’t feel like they were treated fairly or were hurt in some way in connection with their jobs. As a member of the board, you can be held liable for not properly screening employees, not having sufficient employee guidelines or protections in place, or for not ensuring that the facilities are properly maintained. Make sure your organization has safety training and gear, if necessary, to protect the staff.

    

   
   
   

3. Keep organized records.
   If your non-profit comes under public scrutiny, you’ll want to make sure your recordkeeping and finances are clear, up-to-date and above board. That way, you’ll be able to easily clear up any discrepancies or misunderstandings.
   
   

4. Determine your insurance needs.
   If you have employees and volunteers, your non-profit probably needs Worker’s Compensation insurance. But, they may have other insurance needs as well, to help protect you and others from risks – including Errors and Omissions, General Liability and Property insurance. As a member of the board of directors, you may want to consider Directors & Officers liability insurance, which will specifically protect you and your finances if the non-profit is sued and their insurance doesn’t cover the costs.

Source:
"Directors & Officers Liability Survey: 2015 Summary of Results," JLT