IRS, Forms, Why

[Aquila calva]

Will the BSA, or a BSA Council, approve an "unincorporated association" as a Chartering Organization?

 

Just wondering.

[Beavah]

Will the BSA, or a BSA Council, approve an "unincorporated association" as a Chartering Organization?

 

Yah, sure, they do it all da time, eh? Across the country.

 

And lots of traditional BSA chartering partners might fall into this legal category too, eh? Some PTOs in smaller communities, even some small churches are unincorporated associations. Many homeowner's associations and civic clubs. Even some big organizations like the ABA can be structured as unincorporated associations.

 

It's not a problem, and I don't know of a council that would turn down a charter on that (or almost any!) basis. Like I said, I do worry a bit about the smaller associations of parents and such, though. I just think they're less likely to provide the stable support it takes to keep a unit healthy in da long run. Not impossible, just less likely.

 

Then maybe I'm just a traditionalist for likin' the long-time CO model, eh?

 

Beavah

 

[packsaddle]

Wow, I had no idea.

So, if one of these imaginary (phoney?) COs gets sued for an injury or death or something, what are the liability issues, compared to a real CO with its own insurance, etc?

 

[John-in-KC]

Packsaddle,

 

Remember that's why BSA issues liability insurance, so that the Chartered Partner is protected from licensing the Scouting program.

 

Now, that said, it could get really exciting if an award ever outstripped the BSA policy limits and the chartered partner had no additional coverage. I would guess this has not happened yet, or the National Council would be telling local Councils "do not charter "Friends of" groups in no uncertain terms. From my training (Chris Wolfe of the National Office used to be our Comptroller in Kansas City), I remember the liability limits are rather high, but they are finite.

 

B, do you have any experience in this?

[Beavah]

Yah, the BSA coverage limits are definitely finite.

 

But for most ordinary accidents the coverage should be adequate.

 

Generally speaking, if your state adopts the Uniform Unincorporated NonProfit Associations Act, then the law recognizes the group as a legal entity separate from its members, similar to a corporation. Members are therefore not liable for a tort claim just because they are members (though they may be liable for their own personal actions). Dependin' on your state's NFP Volunteer Immunity statutes and court rulings on such, yeh may or may not have further protections.

 

So this probably isn't somethin' folks should lose any sleep over, eh? The American Bar Association was an unincorporated association until the last decade, and for a bunch of lawyers they didn't lose any sleep over it.

 

Beavah