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

board of directors for nonprofit

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

Protect Yourself While Giving Back to a Worthy Cause


If you sit on a non-profit’s board of directors, you may be one of the organization’s most valuable assets. You volunteer your time and knowledge, provide insights, guidance, and direction. While you do this, however, you also assume a certain amount of liability for your actions. Many people on the board don’t properly understand the risk they take on when giving back to a worthy cause. Fortunately, with some preparation and smart handling, you can protect yourself while advancing the non-profit organization.


Understand your responsibilities

You should understand the details of how your non-profit operates, as well as what it is you’re specifically responsible for. Make sure you know the laws, both state and federal, and ensure that the non-profit is following them to the ‘t’.


Keep organized records

If the worst does happen and your non-profit comes under public scrutiny, you will 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.


Determine your insurance needs

If the non-profit has employees and volunteers, it will need workers compensation insurance among other insurance policies. Other insurance considerations should include errors and omissions, general liability, and property insurance. As a member of the board of directors, you may want to consider directors and offers liability insurance, which works to specifically protect you and your finances if the non-profit is sued and their insurance doesn’t cover the costs.


Are you thinking of joining a board of directors at a non-profit organization? Here is what you should consider.


To discuss the insurance options that are available for you and the non-profit please contact CAV Insurance Agency, serving Wellesley, Dover, and surrounding towns.

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