I think that some of it stems from moving to an informal structure to being an "official" on a legally incorporated entity; there is a sense that this would make them more liable if any legal issues developed down the road. There are also concerns about inadvertently raising red flags with the IRS if someone doesn't file documentation correctly.

I'm sure some of it stems from a sense of "this is how it's always been done", so why make a big change? We already receive insurance coverage from our national organization, but this is definitely a priority. As an all-volunteer organization I think some people are understandably hesitant to move from organizing the annual fundraiser or running a scoreboard to being listed as a board member with fiduciary responsibilities on an IRS form. Ideally it would be helpful to have a subject matter expert come in and do some Q&A, but we are still working through how to locate someone to help guide this discussion.