Risk management usually works with three or four things in place at the same time. You have indemnifications, you have insurance, you have proper oversight, you have good policies and procedures. And they all work together to give you the protection that you need.
The nonprofit sector is risky business. There are unique laws that apply just to us; we have our own sections of the tax code; and we also must follow employment law, building codes, licensing requirements, and more. Of course, the press loves to go after charities gone wild and personal injury attorneys salivate at the thought of chasing an organization’s assets on the balance sheet.
This is why we asked Justine Cowan to chat with us today about mitigating and insuring against the risk that we face as nonprofit organizations, as board members, and as staff members.
*****Timestamped Highlights*****
(6:34) How to structure your nonprofit to mitigate risk
(8:00) The importance of annual state and Federal filings
(10:10) The single greatest area of liability and risk for most organizations
(11:52) The importance of training managers to manage
(14:25) The role of mitigating risk with insurance
(17:35) Mitigating risk when working with volunteers
(19:58) The confusion about overtime rules for employees, as well as failure to classify contractors as employees.
(26:14) Reasons the IRS revokes an organization’s tax-exempt status
(30:00) Ensuring you have a strong conflict of interest policy
(34:21) Indemnification of board members as an added protection for your leadership volunteers
(37:29) The possibility of disputes arising around contracts (and lack of contracts)
Links:
Justine Cowan’s Website: www.cowannonprofits.com
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