Spring 1998 Newsletter

Table of Contents

1. Understanding Board Liability by Janet Buckmaster 

2. Spirits Soaring...Young Volunteers Making a Difference by Wendy MacDonald 

1. Understanding Board Liability by Janet Buckmaster

Should I be concerned with board liability?

Many people who volunteer have concerns about possible liability for their acts if they become directors or officers of a society in Alberta. These volunteers give generously of their time and efforts for the society or charitable organization.

Let’s begin by stating that, for definitive answers to specific questions and scenarios regarding board member liability, a board should consult with their legal and insurance counsel.

And let’s also acknowledge that by far, most boards have never been involved in a lawsuit, and likely never will be. It is the prudent board that examines the issues of liability and risk. It is a healthy board that deals with these concerns and enjoys the great rewards that comes from giving leadership and board service to the community.

It couldn’t happen to us ...

Within the voluntary community, there persists a myth that there is a shield of "charitable immunity" surrounding nonprofit and charitable organizations. This may have been, in the past a way of feeling secure about protecting a charitable organization’s funds from damage awards by the courts.

However, today, as soon as any voluntary organization opens its doors for business, it also opens its doors to a variety of forms of liability. The organization might serve a worthwhile cause, improve the quality of life for many, or be operated mainly by volunteers, but there is no shield that cloaks any voluntary organization from lawsuits.

Experience over the past decade, in the United States and more recently in Canada, makes it clear that lawsuits against nonprofit and charitable organizations are increasing. Organizations providing services and programs, especially to vulnerable clients such as children and the elderly, must be aware of and should plan to reduce their exposure to all forms of liability.

A simple rule of thumb might be to consider that the more "hands on" programs and services an organization provides to the public and vulnerable clients, the greater the exposure to potential liability, and the need for liability protection.

Did You Know ...

• An incorporated society can be sued, or sue, in its own name?

• To incur liability, a board member must do something that shows negligence, or a lack of reasonable care?

• A board member can incur personal liability by not regularly attending board meetings?

But We’re Incorporated, Aren’t We Protected?

Incorporation under the Societies Act in Alberta does provide a way to limit the individual board member’s liability, but it does not eliminate liability entirely. Directors can still be held personally liable for activities done while acting as a director or officer of the society.

Board members need to understand that they are fully accountable for all organizational behaviour and resources. They are not "just volunteers" who meet to socialize monthly, or lend their names for profile, or sanction staff activity.

As an incorporated body, the board’s job is to govern, which means that even the smallest board has the highest level of decision making and legal authority for the organization. Governance is how the board exercises its authority, control and direction.

The Board Member as a Public Trustee

Collectively, a board of directors is the legal entity for the organization, responsible as a group for the proper conduct of the organization’s affairs. This responsibility is a matter of law deriving from incorporation as a not-for-profit organization.

Individually, board members do not represent themselves. They are trustees for the organization’s membership and the wider community. A trustee’s responsibility is to participate in and ensure the proper conduct of the organization’s affairs on behalf of this "public."

The board member’s role as a public trustee comes from the group’s incorporation, which sanctions the organization’s mission as a legitimate use of community resources. Those resources include government funds, private donations, and/or volunteer time. Trusteeship is a legal responsibility, and individual board members can be held responsible for improper conduct of the organization’s business.

Becoming a board member means accepting the obligation of loyalty and a duty to uphold the integrity of the organization. It also means acting honestly, in good faith, and putting the interests of the organization first.

What is Liability?

The Canadian Association of Volunteer Bureau and Centres, in their 1996 Screening Handbook, interprets liability as "a finding of legal responsibility, either in a criminal or a civil action." The Handbook identifies some of the types of liability that nonprofit organizations might encounter:

• bodily injury (physical harm)

• contractual liability (fulfilling of contracts, including client contracts)

• products liability (safety and effects of products offered, including such things as meals)

• directors’ and officers’ liability (the obligation to manage the affairs of the society with due diligence, care and skill)

• errors and omissions liability regarding the quality of the work done, or advice or counsel provided, and relied on by others)

• personal injury liability (including racial discrimination, libel and slander, sexual harassment, false arrest, invasion of privacy, and emotional and sexual abuse).

The Best Protection is Prevention

A board member may minimize the risk of personal and organizational liability in several ways:

• Be aware of your legal responsibilities.

• Ensure there are appropriate policies, training, supervision, and procedures in place to guide the actions and behaviour of both board members, staff and front-line volunteers. (Staff members have been found liable for their actions in certain circumstances).

• Many societies include an indemnity clause (security against penalties and liabilities) in their bylaws, as a way to offer some reassurance to board members).

• If your board is considering board liability insurance, ask about coverage not just for individuals, but for the nonprofit organization itself. Look for a policy that pays defense costs as they are incurred, so as not to deplete the organization’s finances.

• Ensure each board committee has its own terms of reference, approved by the board and clearly outlining the committee’s authority and relationship to the board.

• Request that any professional opinions (legal, insurance) on important issues be in writing.

• Consider bonding those employees and volunteers who will be responsible for or in contact with large amounts of money.

• Board members must avoid or declare conflict of interest situations.

• Insist that board minutes show any abstention, dissention or disclosure.

• Vote against any expense that you believe will put the organization in financial jeopardy.

• Include in your bylaws the expectations that board members adhere to a Code of Conduct policy for board members. If you don’t already have a code in place, now is a good time to develop one.

These are just a few ideas to get you started. Lawsuits cost money, whether you win, lose or settle. They take up valuable time and detract from the organization’s mission and reputation. They affect staff morale, donor contributions and community goodwill.

The Resource Centre for Voluntary Organizations has many resources on board liability and samples of Codes of Conduct for board members.

Sources:
Canadian Association of Volunteer Bureau and Centres, Screening Handbook, March 1996.

Hunter, L. "Getting Better and Better Getting," Law Now, Oct./Nov. 1997.

Hunter, L. "But Am I Liable - Whatever That Is?", Law Now, Dec. 1995/Jan. 1996.

Marks, L. "Directors’ Liability: What You Don’t Know Can Hurt You," Symphony Magazine, Oct./Nov. 1987.

Sills, S. and Smith, S. "The Emperor’s New Clothes or How to Protect Against Lawsuits and Other Chilling Surprises," Nonprofit World, Volume 13, Number 6, Nov./Dec. 1995.

Janet Buckmaster’s 25+ years with the nonprofit sector is varied: as workshop leader, board member, manager, front line staff, and program volunteer. For nine years, Janet was with the Board Development Program (under Alberta Community Development), which is recognized nationally for advancing board leadership and as a model of volunteer management. Janet has served on the boards of values-driven organizations, whose beliefs and practices of governance and community development were compatible with her own.

Along with her knowledge of board leadership, Janet has an extensive social work background in human services, including her work with the YMCA in Montreal, Services to Persons with Disabilities (Alberta Family and Social Services), and the YWCA of Edmonton.
She is an alumnus of the Voluntary Sector Management Program at Grant MacEwan College, and earned the National Certificate in Voluntary & Non-Profit Sector Management from the Canadian Centre for Philanthropy.

Janet continues to work in a private capacity with nonprofit organizations in the voluntary sector, in the areas of governance and leadership development for boards. She is a part-time instructor at Grant MacEwan College, and has been on contract with the Resource Centre for Voluntary Organizations (RCVO).

This article may be reprinted with permission from the RCVO. Please credit the author and source.

Top of Page

2. Spirits Soaring...Young Volunteers Making a Difference by Wendy MacDonald

"Tell me, I’ll forget; show me, I’ll remember; but involve me and I’ll understand." This old Chinese proverb takes on new meaning when it’s used as a model for teaching young people about volunteerism.

Supporters of the "Capture Our Spirit" service learning project recognize that today’s youth are no less able or willing to help others than in previous generations. While eager and caring, many lack the knowledge and connections to effectively use their time and skills in voluntary service. Many young people benefit from support and guidance in planning volunteer activities through structured volunteer projects encouraged by schools and youth groups.

Barb Rioux, is Co-Coordinator of the "Capture Our Spirit" program sponsored by the Information and Volunteer Centre for Strathcona County, the Wild Rose Foundation, and the United Way. She sees boundless opportunities to introduce and encourage youth volunteerism.

Projects often start with a seed of an idea that blossoms into something special. When Cosmetology students at Salisbury Composite High School learned about the needs of fifty preschool students in the Norwood Headstart program, they were enthusiastic in their response. Finances are strained in many inner city families, and haircuts are a luxury. The ten Salisbury students added to their own skills and time by recruiting additional Sherwood Park hair stylists to help with a marathon day of haircutting and fun. The preschoolers were involved in games and play activities, while they waited, and were given gift bags of treats and toiletries that the students had gathered from local businesses.

Ardrossan Junior High students worked with Play Therapists at the University of Alberta Hospital to develop small group activities that they could share with terminally ill children. Everyone had fun creating Rice Crispy houses together. The students also learned to partner with business sponsors in getting supplies for the project.

Rioux and her colleague, Anne Arseneau have learned that the most successful volunteer projects happen when:

• young volunteers identify community needs

• planning and design of the activity is done by the kids

• group volunteer projects are supported by adults willing to encourage but not direct the activity

Why do young people leave volunteer roles? Rioux’s experience shows dissatisfaction is often related to lack of organization and structure, to groups that do not thank or recognize their volunteers, and to leaders or supervisors who do not include volunteer ideas and input when planning. Respect and appreciation are important to all successful volunteer relationships, but even more critical when encouraging young people.

Linda Tyre, Manger of Volunteer Services at the Cross Cancer Institute notes that many students who have been exposed to positive volunteerism through school and other structured group experiences continue volunteering long after their original commitment has ended. They are anxious to continue their involvement, to help others, and develop skills to respond to new challenges.

While volunteering as part of a group is often easier, some young people choose to explore their interests and help others as individuals. Many volunteer centres are able to connect teens and young adults to appropriate projects or organizations. Marjory Cayford of the Volunteer Centre of Edmonton is often asked for ideas by young volunteers wanting to expand the scope of their volunteer experience. While many organizations welcome the enthusiasm and energy that youth bring, risk management, screening, and supervision issues sometimes make it difficult to involve larger numbers of young people in agency volunteering.

Young people are significantly influenced by their peers, but adults also play an important role in modeling volunteer involvement. Talking about personal volunteer experiences, identifying the results of volunteer initiative and inviting young people to join in all boost interest in volunteerism. Research clearly shows a higher rate of volunteerism among youth whose parents volunteer.

Volunteer Centre of Calgary’s, Nadine Maillot also sees family volunteering as an effective means of introducing children and teens to community service. Families who volunteer together share quality time and provide support to each other. Intergenerational partnerships involving grandparents and grandchildren are also a great way to share volunteer spirit. Supervision, transportation, conflicting schedules and other obstacles, that sometimes affect young volunteers, are reduced through family involvement.

How do young volunteers describe a great volunteer opportunity? "It’s fun, it lets me do something I really care about, and it’s easy to get involved" says eleven-year-old Kate. "I like to be with my friends or my family."

Older youth, like sixteen-year-old Ravi, may also be looking for career building opportunities such as gaining work experience, earning a positive reference, or exploring occupational choices. Volunteering helps young people develop many of the "workability" skills considered critical by employers. These skills include qualities like problem solving ability, reliability, positive attitude and commitment.

Commitment is key to successful youth volunteering says Grandview Capital Care Volunteer Manager, Jim Tweddle. Young people soon learn how important their involvement is to patients and that studying, holidays, and other activities must be considered accordingly. Tweddle includes questions about commitment when interviewing prospective volunteers.

Recognizing the diverse skills and abilities, which young people have to offer, is important. Just like adults, their individual differences are reflected in their interests, experience, values, and skills. Explore the "gifts" they willingly share and help them find meaningful ways to be part of the volunteer community. L.Y. Cairns teacher, Sue Nobes, has helped link her special needs students with community organizations that benefit from the teens’ individual and group talents. Many of the high school students, who have hearing impairment, intellectual delays, and cerebral palsy, volunteer to teach elementary school students about growing plants through a traveling greenhouse school bus project. Others volunteer at the Food Bank, Edmonton General Hospital, Edmonton SPCA and Capital Care Dickensfield. 

Encouraging Youth Volunteerism

What can you do to promote volunteer opportunities for young people? How can you make a difference?

• When designing volunteer roles, involve young people in designing opportunities that meet their needs while helping others.

• Challenge yourself and/or organizations in your community to be creative in how they involve young people.

• Stuffing envelopes or picking up garbage may be fun for a short time in a group of peers, but young people have

• much more to give. Consider, for example, the technology skills of many youth in our communities or the passion and ideals they bring to environmental and social justice issues. 

• Reach kids where they are...not where you think they should be. Consider the most effective tools to communicate with young audiences. If in doubt ask them for help! 

• Think about who influences their choices. Peers, parents and other significant adults are all important role models, encouragers and supporters. 

• Link volunteer activities with opportunities and challenge. Connect young people with meaningful benefits.

• Provide information in flexible formats that are easy for kids to understand and respond to. Traditional recruitment and placement strategies don't always acknowledge school schedules and the hours students can usually contribute...evenings, weekends, holidays.

• Ensure that appropriate screening, placement, orientation, supervision and recognition occurs.

• Don’t assume that young people are aware of community needs or volunteer opportunities that make a difference. Help them see and experience a wide range of needs. Show them how they can make a difference.

• Invite young people to volunteer using direct and personal approaches. Eighty-five percent of people who don’t volunteer say it is because nobody asked. Many don’t recognize themselves in broad, generic requests for volunteers. Involve their peers in promoting opportunities.

• Recognize young volunteers in appropriate ways that they appreciate. A personal and sincere thanks should be the first strategy.