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

[Bruce Wolfe]

501(c)(3) is a corporation under IRS law. 'CA Public Benefit Corporation'
is the same classification under state corporations law. They each cannot
be separated or differentiated.

Bruce
 On Jan 27, 2012 3:59 PM, "David Rorex" <drorex at gmail.com> wrote:

> 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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