Page 12 - AO 4th QT CL NL

6. Review repor ng and corporate governance documents? Budgets, employee salaries, and resource alloca on are documents you will want to review. Consider the percentage of funds used to cover administra ve costs. Are the board mee ng minutes up to date and other records well maintained?
7. Understand the bylaws? Do the bylaws indemnify you to the fullest extent permi ed under the law? Do bylaws provide for the advancement of defense expenses?
8. Are there pending or past lawsuits or regulatory inves ga ons? Have there been recent audi ng issues or internal disagreements that could in uence your decision? Has there been nega ve a en on in the media or nega ve ra ngs/reviews on any charity evalua on website?
9. Does the organiza on carry Directors & O cers liability insurance? It’s important to understand the scope of coverage and limits of liability provided
- that is, what the self-insured
reten on of the policy is? Also
check the nancial ra ng of the
carrier providing the coverage
and do they o er risk management tools?
Not sure, we will be glad to review your situa on before joining a board and help the organiza on with their Directors & O cers Insurance.
Source: Thomas Herendeen, a non-pro t manager at Travelers Bond & Speciality Insurance