Board Liability Guide For Nonprofit Direc

In 1984, the members of the Committee on Non-Profit Organizations of the Association of the Bar of the City of New York recognized the need for a handbook discussing the rationale for, and statutory underpinnings of the potential liabilities of directors and officers of nonprofit organizations. Many individuals asked to serve as directors and officers of such organizations had misconceptions regarding their potential liability, and these hampered their assessment of the need for indemnification provisions in the organization's by-laws and directors' and officers' liability insurance. Given the importance of these issues to the nonprofit sector, the committee decided to sponsor an independent examination of the legal considerations involved in directors' and officers' liability.