The unclear status of nonprofit directors: an empirical survey of director liability

Nonprofit boards of directors are fiduciaries for the organization. However, there have been various legal interpretations of their duties. The authors review the conflicting standards of conduct that exist, and they report the results of a survey which sampled director opinion concerning the liability issue. The proposition that directors were unaware of their legal responsibilities was supported, and the implications of this finding for organizational procedures and public policy are discussed.