Charitable Organisations and Foundations
A foundation administers assets dedicated to a purpose and answers, through its board of trustees, for having honoured it. The law adds insurance obligations that do not depend on the size of the organisation: volunteers, activities with minors and the liability of those who govern without remuneration. We know how the market underwrites the third sector and what documentation each insurer asks for, and we design with you a programme equal to the trust your organisation receives.
Lo que nos preguntan en charitable organisations and foundations
Our board of trustees does not receive remuneration. Does it respond equally with its assets?
Yes. Article 17 of Law 50/2002 requires trustees to perform their duties with the diligence of a loyal representative and makes them jointly liable to the foundation for damages caused by acts contrary to the law or the statutes and for those carried out without such diligence. The non-remuneration of the position is the rule established by the law itself and does not modulate this responsibility. General rules apply to third parties. The directors and officers insurance assumes the defence from the first requirement, which is when the expense begins.
What cover do we need to provide to our volunteers?
Article 10 of Law 45/2015 recognises their right to be covered, at the entity's expense, against the risks of accidents and illnesses directly resulting from voluntary action, and against civil liability in cases where sectoral legislation requires it. The policy is issued based on a census, so alongside the capital, it is agreed how it is updated when people join and leave with each programme.
A trustee leaves the position. How long do they remain protected?
As long as the foundation maintains the programme, any claim that arrives after the cessation is covered by the policy in force on that day, because in directors and officers insurance, the insured status accompanies the person who held the position. The dissolution of the entity is the scenario that requires contracting the extension before agreeing to it, and the discovery period and run-off are closed in that same agreement.
