nonprofit liability

Nonprofit liability refers to the legal responsibility a nonprofit organization has if it faces claims or damages. Typically, the organization itself is protected from personal financial risk through limited liability, meaning its assets are safeguarded. However, individuals such as directors, officers, or employees can sometimes be held personally liable if they are found to have acted negligently, unlawfully, or outside their authority. To minimize risk, nonprofits often carry insurance and follow legal and ethical standards diligently. Overall, liability concerns focus on protecting both the organization and those responsible for its governance, ensuring accountability while preserving organizational assets.