Directors and Officers Liability for Non Profit Entities

More than 80% of Canadians report volunteering in some capacity for a non profit organization. Of these people, over 40% of them hold positions on boards or committees. In most cases, without thinking much about it, these people have accepted a degree of legal liability for the actions of their organization under their control.

Forty years ago, few Canadians would have thought of ever suing a group of volunteers, except in the most egregious circumstances. Today, however, the Canadian public is expecting non-profit organizations, and those who run them, to more accountable and business-like in managing their affairs.

The following information has been provided to inform board members of their legal responsibilities as well as to provide practical suggestions for managing these risks and minimizing liability. While the information being presented contains some legal information, it does not provide legal advice. Legal advice will vary with the individual situation, and depend in part on the nature of the volunteer organisation.

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