[Noisebridge-discuss] Question about 501(c)(3) status ....

[David Rorex]

This doesn't have anything to do with 501(c)(3), it has to do with being a
corporation.

On Tue, Jan 17, 2012 at 10:02 PM, Bruce Wolfe <brucewolfe.sf at gmail.com>wrote:

> Ultimately, it also provides necessary liability cover under the shield of
> corporations law so that no one person can be sued personally due to fault
> by the organization's action. This is not to say, a person acting on their
> own accord of activities not sanctioned by the organization would also be
> protected. People taking action outside of approved activities of
> Noisebridge Board of Directors or by the membership would be liable and *
> not* be protected.
>
> Example: If the floor buckled and someone tripped, fell and hurt
> themselves without any help, their insurance company or legal action would
> be against the 501(c)(3), not anyone personally.
>
> Example: If violence is prohibited by the board of directors, and a member
> assaulted another person, the offender would/could be arrested and sued
> personally. The 501(c)(3) may also be enjoined if it can be proved that it
> was negligent in providing ample security to prevent such an occurrence.
> But, this is can be averted as in the case of an altercation in a shopping
> mall. The establishment usually would not be sued if there was no liability
> on the organization's part that contributed to the incident.
>
> Example: If a member was slighted by the 501(c)(3) in any way by an
> approved policy, then the 501(c)(3) will bear the brunt.
>
> Example: If a director(s) slighted a member(s) and the action was
> sanctioned or approved by the board of directors and/or membership, the
> board member can be liable personally. (Bylaws or other policies may vary
> on the actions of directors and simple members.)
>
> For the last example, the organization should have insurance for each of
> the board members. It usually is an extension of the regular insurance
> applied at the time of purchasing the insurance and updated annually. Board
> members may also be required by insurance to undergo ethics training,
> sexual harassment training, workplace safety, etc. I would suggest the
> board of directors to review its insurance policy annually at the time of
> passing a new budget or budget review or insurance policy annual renewal.
>
> I've had half dozen businesses in more than two states, been a director on
> more than a dozen boards and currently serve on the city's Sunshine
> Ordinance Task Force where we must undergo various required legal trainings.
>
> Bruce Wolfe
>
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>
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