Although civil actions involving NPOs are rare in South Africa, the corporate landscape in South Africa has changed in line with greater global emphasis on good governance, increasing the likelihood of litigation in the future.
In a recent IOL column, Martin Hesse outlines the things NPOs can do to protect themselves and their individual board members against litigation, including:
- tightening up its governance codes, accounting mechanisms, and disciplinary procedures for paid staff members and volunteers;
- implementing a risk management strategy that includes seeking legal advice when entering into contracts; and
- taking out liability insurance for itself and its directors or trustees.
Not surprisingly (we think), readers are referred to the governance resources on the Inyathelo website, and the article often cites Inyathelo Executive Director, Shelagh Gastrow.
- Read the entire article, "Voluntary but liable," by Martin Hesse on the IOL Personal Finance website.
- Download "Governing Boards in the Non-Profit Sector", quoted in the article.
- Visit the Governance SA website for more information on the principles and practices of good governance in the NPO sector.