MT HB665

Volunteer officers and directors of small nonprofit corporations are exempt from individual liability when the nonprofit fails to withhold taxes or file required tax statements

Small nonprofit corporations are defined as nonprofits with 10 or fewer paid employees at any given time during the calendar year

The exemption does not apply if the officer or director receives monetary compensation or wages (excluding reasonable expense reimbursements)

Individual liability protection expires after the nonprofit is out of compliance for more than 12 months with outstanding unpaid taxes, penalties, and interest

Officers or directors involved in fraud, embezzlement, or intentional misconduct remain personally liable regardless of volunteer status