§ 18605 Nonprofit Association Liability Limitation

• •Being a member, director, or agent of a nonprofit does not automatically make you personally responsible for the nonprofit’s debts.
• •You would only be liable if you personally promised to pay or acted in a way that makes you personally responsible.
• •The protection applies only to nonprofit associations, not for‑profit businesses.

A local charity owes $10,000 for a rented event hall. One of the board members wonders if they have to pay that money from their own bank account.

Because of this law, the board member does NOT have to use their own money to cover the charity’s bill just because they sit on the board. The debt stays with the charity, not the individual.