Associations unfamiliar with new law on liability: risk for volunteers | Inland

This emerges from a study that was carried out at the initiative of IVBB, the trade association for associations and DNA, an organization that helps to professionalize associations and related bodies. More than 26,000 board members of associations and foundations participated in the study.

All boards of associations and foundations must comply with the new Act on Management and Supervision of Legal Entities (WBTR) on 1 July this year. Church boards and Owners’ Associations (VvEs) are excluded.

The act is intended to improve the management and supervision of associations and foundations, among others. The legal establishment of tasks, powers, obligations and liability is becoming important. Abuse of positions, conflicts of interest, financial fraud and other things that are unacceptable can then be better tackled.

More than before, liability is a point of attention. It does not matter whether board members are paid or are volunteers. The law also makes no distinction according to the size or type of association or foundation. Not only professional national organizations, but also all local sports, culture and hobby associations have to deal with it.

When asked whether board members knew the WBTR, 60 percent answered that they had never heard of the law. Of the 40 percent who do know something about it, most (65 percent) have no idea yet how they are going to implement it. according to the research

DNA and IVBB say they are shocked by the results of the investigation. Both authorities point out that there are 132,000 associations and 143,000 foundations with a board in the Netherlands. 95 percent of all those boards consist entirely of volunteers. “In less than three weeks, drivers will have to know the law to be able to act on it,” said DNA and IVBB. “That is why internal procedures must be in order, discussed and recorded internally. This is necessary to comply with the law. This prevents board members from running unnecessary risks of personal liability.”

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