What are the main liabilities of a Charity or Social Enterprise?
Charities and Social Enterprises have the same liabilities as any other organisations, in that the trustees of a charity or directors of a social enterprise have a duty to safeguard the property of the organisation, not only from direct loss or damage but also from third party liabilities which would otherwise have to be satisfied out of the property of the organisation. Because of this, trustees or directors should ensure that appropriate insurances are in place. If trustees or directors fail to discharge this duty, they may be personally liable to make good the organisation’s losses. Because of this, it may be appropriate to take out insurance as a means of covering this liability. Our “That wont happen to us” provides further information on the types of claims being made.
Related Questions
- Can a member of the Board of Directors of a charity make a loan to the charity for use in their social enterprise, and earn interest on the debt without triggering any CRA issues?
- Can a Charity or Social Enterprise indemnify me as its trustee, officer or director?
- Does my organisation have to be a charity or a social enterprise?
