The Boy Scouts are again on the stand for sex abuse. This time, the cost may be expensive for the Scouts as the alleged victim is seeking $25 million in punitive damages for the organization's failure to prevent the abuse.
Yes, this is a lot of money but more importantly, this is a case about governance: did the board, via its staff, fail to exercise its duty of care, by providing appropriate polices and training, in implementing its mission of mentoring boys?
While the Scouts may be an exception in terms of the depth of their resources (see LA Times article) all nonprofit boards should pay attention to their policies, training, and of course, liability insurance needs. It's a matter of fully exercising its duties, not to mention, achieving mission.