Many of these nonprofit organizations are governed by boards of directors comprised of individuals volunteering their time and talents. Membership on nonprofit boards offers opportunities in leadership, community and philanthropy. However, serving as a nonprofit director exposes one to certain risks too. This is not to say that such a claim or lawsuit will necessarily succeed. Defenses exist in Idaho common law and Idaho statutes.
Defamation claims pose potential liability to directors.
Defamation is an intentional false communication that injures another's reputation or good name. Defamation that is spoken is known as slander and when written is called libel. Consequently, when directors of the association communicate among themselves about the qualifications of the officers, current or prospective members and their participation in the activities of the association, the communications are conditionally privileged. For example, Amy sits on the board of directors for the Junior Sumo Wrestling League. Upon hearing that Coach Bill has driven his sumo wrestling team in his van after consuming alcohol, Amy recommends to the board that Bill be reprimanded.