Corporate Law Liability of an NGO

[barjack]

What is the liability of the Directors of an NGO? Is it limited or unlimited and are they accountable to the general public, since they are in existence through donor funds? How should it be interpreted if an NGO 5 years in existence has no annual report and refuses to give information on the salary it pays its directors? What is the procedure for launching an investigation into questionable practices of a particular "environmental" NGO?

 

[NYClex]

I assume you mean a "non profit organization"? They have to file an annual report with the IRS, but they don't necessarily need to make it public.

 

[barjack]

Yes, I mean NPO. This is not an American organisation and they are registered and operating in one of the Caribbean islands so there is no pressing urgency for annual tax filings, unless of course they are audited. (People get away with all sorts of nonsense down here until they are close to getting caught and then they clean up their act).

Presently I know that they are trying to "fix" their accounts so they can be registtered in the US and enjoy the samet tax benefits of US NPO's. This would also mean being able to suck more money out of unsuspecting donors.

I am curious as to the universal law on how NGO's ( NPO's) must operate as far as transparency and public accountability is concerned. If sued (for valid reasons), is the directors' liability limited or unlimited?