Why Do Charities Need Creditor Proofing? This is Why. By: Adam Aptowitzer In the aftermath of the abuse scandals at Catholic schools and churches the charity world learned much about how creditors could seize control of a charity’s assets. As a result many organizations began studying methods to protect charitable assets in case of an […]
Credit Proofing Charity Assets Most charities and not for profit organizations are incorporated as non share capital corporations. These corporations are considered separate legal entities from their members or directors. This ‘separateness’ protects the members (and to a large extent directors) from being personally liable in the event the organization finds itself liable for damages […]
Credit Proofing Charity Assets Part II In last month’s newsletter we discussed the method of credit proofing a charity’s assets by incorporating separate corporations to hold different types of assets and operate discrete activities. A key element in organizing into separate corporations is to ensure that independence and authority are maintained while, at the same, […]