Personal liability

As an officer, you should have a good understanding of your charity’s rules document and its legal structure. You should also understand laws that may apply to your charity such as health and safety, tax, contract and labour laws.

If your organisation is an unincorporated group, you may be personally liable for any obligations the group takes on and for any judgments made against the group by the courts.

If you are an incorporated society or a charitable trust, in general there is limited personal liability, provided decision makers act honestly, prudently, within the group's charitable purposes and not for personal gain.

Note: Make sure you are familiar with the legislative requirements that apply to your organisation’s legal structure, e.g. Incorporated Societies Act 2022 and Charitable Trusts Act 1957.

Some key places to learn more about personal liability are:

• Community Law Manual for information about the different legal structures and laws that you should know about

• Companies Office – Societies and Trusts Online for information about Incorporated Societies and Charitable Trusts

• Ministry of Business, Innovation & Employment – Labour information for information about health and safety, and employment relations

• Inland Revenue for tax information, or

• Independent advice from a relevant professional, such as an accountant or lawyer.