Why do charities need creditor proofing? This is why.
In the aftermath of the abuse scandals at Catholic schools and churches the charity world learned much about how creditors could seize control of a charity’s assets. As a result many organizations began studying methods to protect charitable assets in case of an unsuccessfully defended lawsuit against them. Lawyers though know that the lessons of the past have not sunk in at many charities and now there is a very public example that comes from the failure to learn from history.