Emergency Law Inventory | Full Law Text

Law Number

12 V.S.A. 5781

Summary Title

Liability: Service to Nonprofit Organization


A director, officer, or trustee of a nonprofit organization will not be held legally responsible for official actions taken by that individual or for situations where an employee, director, officer, or trustee acted or failed to act.

Full Title

Nonprofit organizations

Full Text

A person who serves without compensation as a director, officer or trustee of a nonprofit organization qualified as tax-exempt under section 501(c) of the Internal Revenue Code of 1986, as from time to time amended, shall not be held personally liable for damages resulting from: (1) any act or omission within the scope of the person's official functions or duties which is done in good faith, unless it constitutes gross negligence or an intentional tort; however, this subsection shall not protect a person from liability for damages which result from the operation of a motor vehicle; (2) any act or omission of an employee of the nonprofit organization; or (3) any act or omission of another director, officer or trustee.