Senate Committee to Consider Charitable Immunity Bill
Mon. 1/26/04
On Monday, Jan 26, 2004, the New Jersey Senate Judiciary Committee is scheduled to consider legislation that would reduce the protections for non-profits under New Jersey's Charitable Immunity Act.
S-540, sponsored by Sen. Joseph Vitale, would make the Charitable Immunity Act inapplicable in any civil action which alleges that the negligent hiring or supervision of any employee resulted in a sexual offense being committed against a person under the age of 18 who was a beneficiary of the nonprofit organization.
Background on Charitable Immunity:
New Jersey's charitable immunity statute provides that a corporation formed for religious, charitable, education or hospital purposes is not liable for damages caused by the simple negligence of someone acting on the organization's behalf if the person suffering the injury is a "beneficiary" of the organization's services. The law is intended to help preserve availability of an organization's assets for its charitable services, and to help ensure that New Jerseyans will continue to volunteer without fear of being held responsible for large awards and settlements. The law is not absolute, and there are numerous exceptions. For example, the protection doesn't apply to intentional acts, nor does it protect board members or volunteers in cases of gross negligence or reckless disregard for the duties of their positions.
The charitable immunity statute has been coming under close scrutiny recently, particularly in the context of sexual abuse scandals in the Roman Catholic Church. The law has been challenged repeatedly in court, most recently in a suit argued in New Jersey appellate court against American Boychoir School by a plaintiff who claims to have been sexually abused in the 1970's at the school. The suit could have far-reaching implications for thousands of charities statewide.
The Senate Judiciary Committee hearing will take place at 10 A.M. in Committee Room 4 of the State House Annex in Trenton. We will keep you informed of the latest news on this important issue. If your organization has already taken (or intends to take) a position on this matter, please take a moment and share it with us. If you have questions or would like additional information, please feel free to contact the Center.
Sincerely,
Linda M. Czipo
Executive Director
Center for Non-Profit Corporations
1501 Livingston Avenue
North Brunswick, NJ 08902
732/227-0800
Fax: 732/227-0087
Web: www.njnonprofits.org
Email (general): center@njnonprofits.org
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