Providing Letterhead to Directors and Officers

If you organization provides association letterhead (whether personalized or not) to directors, officers or other volunteers, you may want to re-think the practice (and get legal counsel).

The organization could be liable for damage caused by such a volunteer using the letterhead in a manner in which they are not authorized, but their position might imply that they were authorized to do so.  The use of letterhead can result in implied or assumed consent. 

Some examples of problems arising from inappropriate use of letterhead could include:

• libelous statements are made

• inaccurate information is provided to the recipient

• the organization is committed to an undesirable financial transaction

• the organization could have a damaging or inaccurate position attributed to it

If the letterhead is provided to legitimate spokespersons or to those authorized to contract on behalf of the association, then that may be appropriate.  However, if the stationery is provided for "ego" or any other non-official reason, then that practice should probably be re-considered and discontinued.

To further protect the organization, ensure that you have:

• clear policies on who is authorized to speak and contract on behalf of the association,

• annual orientation and communications of these policies, potential liability issues, and director/officer responsibilities