Liability Protection for Directors and Officers of Arizona Nonprofit Corporations

CharityLawyer:  “In the last decade or so, directors and officers have faced an increased exposure to personal liability.   While the bulk of legal actions have been against directors and officers of for profit corporations, judgments against and settlements by directors and officers of nonprofit corporations are increasing.   I am often approached by boards of public charities and private foundations to advise them on their exposure to personal liability.  There are a number of protections that can be found in the organization’s own governing documents, the Arizona Revised Statutes, federal law, and if they have it, in the nonprofit’s own directors and officers insurance policy.  Those protections are as follows:”