Non-profit needn't mean unprofessional
Volunteering your time as a board member of a non-profit organization can be both difficult and rewarding.
With the budgets of non-profit groups often very limited, it's your job to make sure that donations and funding are being spent responsibly, as well as ensuring the organization itself is run fairly and morally.
However, if someone is unhappy with the way in which you’ve been running the organization, as a board member, you could be found personally liable. It's unlikely that your organization’s precious budget would stretch to cover legal costs and damages, leaving you to pay for them yourself.
Directors' and officers' insurance can help protect the board members of non-profit organizations by covering costs arising from a potential lawsuit.