This research project focuses on the governance of nonprofit organizations, but specifically on the legal responsibilities of the "board of directors." I chose this topic for research because it is a subject of enormous importance and one that deserves further exploration. Although there exists a significant amount of material on the general subject area of "boards of directors", there is a limited amount of material on the legal responsibilities and implications of nonprofit corporate governance.; This research examines the legal responsibilities and liability issues concerning boards of directors of nonprofit organizations. Also included in my research is an examination of "Indemnification" and "Directors and Officers Liability Insurance" as safeguards against liability for the board member as an individual and the board as a collective body. My primary hypothesis is, "Boards of Directors of nonprofit, 501(c)(3) organizations lack a basic knowledge of their legal roles and responsibilities that is necessary to properly execute their governing duties."; The primary problem area concerns the legal responsibilities of boards of directors and what I believe is an inadequate understanding of their roles. Board members, regardless of the type or size of the nonprofit organization they represent need a basic legal understanding of nonprofit corporate law and ongoing training in order to be adequately prepared to serve effectively.; The primary hypothesis was tested using a thirty-six (36) question survey that was mailed to board members of 171 independent Goodwill organizations in the United States. Of the 171 possible respondents, 106 were received, for a 61.9 percent response rate. The survey results confirmed, in most cases, the primary hypothesis.; It is my hope that this research project will make a significant contribution to the knowledge concerning the governance of nonprofit organizations in the rapidly growing and diverse "Nonprofit Sector".
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