Ten Things Non-Profit Boards Should Think About (Soon)

According to FIC’s December 9th electronic newsletter there are Ten Things Non-Profit Boards Should Think About (Soon). According to Steve Tatum, an attorney and partner with Cantey Hanger L.L.P., most members of non-profit boards are unaware of the potential for personal liability that became apparent in the recent case of Verret v. U.S.A., 542 F. Supp. 2d 526 (E.D. Tex. 2008) affirmed by the U.S. Court of Appeals for the Fifth Circuit on February 26, 2009. The lower court opinion gave a very detailed account of the reasons why the board chairman of a non-profit hospital was held personally liable for payroll taxes the hospital owed but did not pay. See our previous post regarding this court case. It also provides some good ideas for at least minimizing the risks of board members being personally responsible for a potentially large bill from the IRS.

See full article here.

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