Legal Term
DIY vs professional for reviewing nonprofit board agreement
Legal Definition
The choice between an individual (often a new board member) reviewing their own nonprofit board agreement versus hiring an attorney. It involves weighing the cost of legal counsel against the risk of missing critical clauses that govern personal liability, indemnification, and fiduciary duties specific to nonprofit governance.
In Plain English
It's like deciding to fix your own car versus taking it to a mechanic. One might save money upfront, but if you miss a big problem, you could be stranded (or personally sued) later.
Example in a Contract
Section 7. Indemnification and Limitation of Liability. The Organization shall indemnify a Board Member for acts performed in good faith and within the scope of their duties, except for cases of gross negligence or willful misconduct. However, such indemnification shall be limited to the assets of the Organization and shall not constitute a personal guarantee by any Board Member.
This content is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for legal matters.