Nonprofit and Philanthropic Organizations, an in-depth, semester-long course is offered each fall term at the University of Iowa College of Law that provides an overview of nonprofit legal issues. The course is taught by Professors Willard Boyd and Richard Koontz.
XIII. A. Principle – Compliance Responsibility
Charitable nonprofit organizations are chartered and granted tax exempt status by government to serve the public. With this public privilege comes the obligation of accountability. This accountability takes a variety of forms: good management practices, legal mandates, and ethical conduct. The obligations of charitable nonprofit organizations are defined both by government laws and regulations and by self-regulation through policies adopted by organizational peers and by the organization itself.
The concept of charitable immunity from lawsuits has been eliminated. Therefore, directors and officers are liable for organizational torts and breaches of contract where they are negligent and third parties have been injured.
Starting and Managing a Nonprofit Organization: A Legal Guide by Bruce Hopkins (2009).