Most charities and not-for-profit organizations are incorporated as non share capital corporations. These corporations are considered separate legal entities from their members or directors. This 'separateness' protects the members (and to a large extent directors) from being personally liable in the event the organization finds itself liable for damages as a result of a court finding.
Imagine this: a customer enters your office or store and very quickly suffers an attack of some sort, causing her to break out in hives and have difficulty breathing. Employees remove her from the store, but she's in such a state that she has to go to the hospital. You later discover that the customer suffers from environmental sensitivities, and unfortunately she had her first major attack at your workplace. Oh, and she claims she can no longer work because of the episode, so she's suing you for damages and lost wages.
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