Duties and Liabilities of Directors and Officers of Charities and Non-Profit Organizations

The purpose of this paper is to briefly outline the duties and liabilities that are unique to directors and officers of charities and NPOs. In this regard, the paper begins with a brief discussion of the differences between charities and NPOs. The paper next provides an explanation of the standard of care applicable to directors and officers of charities and NPOs, followed by a discussion of the high fiduciary obligations placed upon directors and officers of charities, and in some instances NPOs when dealing with charitable property. Lastly, the paper provides an overview of a select list of statutory duties, liabilities, as well as statutory protections, which are available to directors and officers of both charities and NPOs in certain situations. 

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