The Terrorists have Already Won
Some people know this, but not others, I’ve been trying to start a charity with a couple of priest friends of mine that will basically send supplies and hopefully volunteer teachers to some schools they run in Tanzania. Not a big deal, maybe one container shipment out there a year with computers, books, backpacks, etc. We were thinking about a $50,000/year budget (not planning on paying anyone). So I’ve formed the corp, gotten an FEIN, and have started the steps to apply for tax exempt status with the IRS.
So in getting bylaws and all that signed, one of the people that will be on the board brought up the topic of directors insurance. The entire concept seemed odd to me until I confirmed that there is no way to form a not-for-profit in such a way as to immunize the directors or officers should that organization be sued (very much unlike a normal corporation that does this exact thing if you form it right). Being a doctor he is very much concerned with lawsuits, and rightfully so.
So do you know how much this insurance would cost? A quick estimate was 3 to 5 thousand dollars! This is our legal system, where an organization that’s constiuents don’t even have standing to sue in US courts has to pay 10% of its annual income to an insurance company on the off chance that someone might sue us not liking the pencils we are sending to Africa because, as we all know, no good deed goes unpunished.
Any more reasons needed for legal reform? We put to death innocent people, we can’t manage to punish the guilty, and charities have to burn incence to lawyers and give them welfare (and that’s what insurance is, lawyer welfare) before a single donation can be received or a single good deed done. I’d say God Bless America, but the ACLU might take my house away.
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