Advisor Liability Issues
 

My wife is the advisor for a sorority that requires advisors to
sign all checks from the chapter - essentially, any check for
anything. This includes payment for functions such as formal
dances, fraternity/sorority events, etc.

My question is, with this practice, even when she's told
it isn't for alcohol, what is our liability in the
event of an accident.

God forbid, the sorority pays a fraternity for their part
of the party, they buy a band and beer, one of the
young ladies dies from drinking too much, etc. - whatever -
are we liable financially? To what extent? Does anyone
know of prior cases/situations such as this and
the results of the lawsuit?

She will be taken down with them because she is responsible in a way for them. If they admited they lied to her she might not get in trouble. But as an advisor, it is suppose to be her duty to watch them so they don't get in trouble.

She should be ok. Most Nationals have liability insurance that encompasses advisors. Also, the National policies on Risk management are pretty clear, so as long as she isn't deliberately violating policy, or being too much of a mafia lawyer and trying to double think her way into letting the chapter violate policy, she should be more than covered.

Just make sure she is up on all the relevant policies. Trust me when I say that if every advisors' ass was left shaking in the wind there would be no advisors. If you need more specific information feel free to post more or contact me privately.

The advisor could potentially be held responsible if the chapter is violating national policy. Case in point: Advisor signs check for a sorority to cosponsor a fraternity who is having a party at their house. Something happens, let's just say someone falls down the stairs at the house breaking their leg. If the sorority has an alcohol free housing policy in place stating they will not cosponsor alcohol functions within fraternity housing (functions or facilities policies), then by signing that check, the advisor has violated the alcohol free policy, and most likely, the alcohol policy of the sorority. She will not be covered, just as the chapter will not be covered. The person who fell can now sue the national organization, who will be covered, the chapter, its members, and potentially the advisor, who will not be covered because by violating national policy, these folks forfeit their rights to the insurance coverage.

I hope that makes some sense. When it comes to lawsuits, people will go after everyone in very serious situations, and can often times get judgements. I'd be sure, as an advisor, that I was fully aware of what each check is being used for before I signed it.

Kinda OT but...
 

Is requiring advisors to sign checks a standard practice nowadays? We would have been out of luck if we had to do that, since our advisor was never around. We just used the prez and treasurer.

Yeah 33, I'm with you. We'd have definitely been SOL on that front. I know that D Phi E advisors aren't signing checks. It is the chapter's responsibility to manage their accounts, with a dual signature checking account that the president and director of finance both need to sign.

But 33, you know how we state school gals are ;)

We require co-signers on checks as a safety net. We have the Finance Advisor as a signee on the checks. I'm not sure about the Chapter Advisor since she lives out of town.

I know of one chapter that didn't have advisors sign checks; they didn't even know they had a budget..they just went to the collegiate treasurer and she signed the check!

Sounds like that joke. "How can I be out of money? I still have checks left!!:eek:

would your wife like to be my frat's advisor? we need someone to sign for the kegs.

I assume the advisor holds a part of the responsibility.

I would hope that every time elections are held that the advisors sit the chapter down and explain the polices and procedures...Hopefully the chapter members respect the organization and all the volunteers enough not to bring them down with them if it were to come down to a case of breaking policy.

Then again, if they consider breaking policy, she may have bigger issues to handle...

Speaking in a matter of banking...the signer of a check is responsible for the check. It is assumed that when a person signs a check, they know what the funds are being allocated for.
Now..that is in a matter of banking and financial liablity.

As for national policies and liability insurance...I have no idea, it would probably have to depend on what policies are in place by the national of the chapter she is an advisor to.

d