Page 11 - NFP Advisor Vol. 32

VOLUNTEER LIABILITY AND RISK MANAGEMENT:

What Nonprofits Need to Know BEST PRACTICES FOR RISK MITIGATION

UNDERSTANDING THE DEVELOP CLEAR VOLUNTEER POLICIES
LEGAL LANDSCAPE

Establish written policies that define volunteer roles,
Nonprofits must navigate a complex web of federal and expectations, and boundaries. Include procedures for
state laws when engaging volunteers. One of the most onboarding, training, supervision, and termination.
important protections is the Volunteer Protection Act These documents should be reviewed regularly and
of 1997, a federal statute that shields volunteers from communicated clearly to all volunteers.
liability for harm they cause while performing duties
on behalf of a nonprofit—provided they act within the USE LIABILITY WAIVERS
scope of their responsibilities, are properly licensed
(if required), and do not engage in willful or reckless Require volunteers to sign waivers acknowledging the
misconduct.
risks associated with their service and releasing the
organization from certain liabilities. While waivers
However, this protection is not absolute. Volunteers
can still be held liable for actions outside their assigned may not eliminate all legal exposure, they demonstrate
duties or for gross negligence. Moreover, state laws informed consent and can strengthen the nonprofit’s
defense in litigation.
vary widely in how they define and protect volunteers,
making it essential for nonprofits to consult legal
counsel familiar with local regulations. CONDUCT BACKGROUND CHECKS

COMMON SOURCES OF LIABILITY Screen volunteers—especially those working with
vulnerable populations—through criminal background
checks, sex offender registries, and reference
► Injury to Volunteers or Third Parties: Volunteers verification. This step helps prevent harm and shows
may be injured while performing tasks, or they may due diligence in protecting clients and staff.
inadvertently cause harm to others. For example, a
DISCLAIMER: volunteer distributing food at an event could slip PROVIDE TRAINING AND SUPERVISION
THIS ARTICLE IS FOR and fall or accidentally serve contaminated items.
INFORMATIONAL PURPOSES ONLY AND ► Working with Vulnerable Populations: Offer training on safety protocols, ethical conduct,
DOES NOT CONSTITUTE LEGAL ADVICE. NONPROFITS Volunteers who interact with children, seniors, and emergency procedures. Assign staff to supervise
SHOULD CONSULT QUALIFIED LEGAL COUNSEL FOR GUIDANCE or individuals with disabilities pose heightened volunteers and ensure they understand their
SPECIFIC TO THEIR ORGANIZATION AND JURISDICTION. responsibilities. Regular check-ins and performance
risks. Allegations of abuse or misconduct—even reviews can help identify issues early.
if unfounded—can damage reputations and trigger
legal consequences. SECURE APPROPRIATE INSURANCE
V olunteers are the lifeblood of the nonprofit sector. ► Data Privacy and Confidentiality: Volunteers Consult your insurance provider to confirm coverage
may have access to sensitive information, such as
They bring passion, skills, and time to causes that
matter, often without expecting anything in return. donor records or client health data. Mishandling for volunteer activities. Consider general liability,
volunteer accident insurance, and directors and
But while their contributions are invaluable, their This article explores the key legal risks nonprofits this information can lead to privacy violations and
involvement also introduces legal and operational face when working with volunteers and outlines best regulatory penalties. officers (D&O) insurance. Some policies may extend
risks that nonprofits must proactively manage. From practices for mitigating those risks through thoughtful coverage to volunteers, but others may require separate
personal injury to data breaches, the potential liabilities planning, policies, and protections. ► Misclassification and Labor Law Violations: riders.
Treating volunteers like employees—by assigning
associated with volunteer activities are real—and CLARIFY VOLUNTEER STATUS
ignoring them can jeopardize both the organization and mandatory hours or offering compensation—can
the individuals who serve it. trigger labor law issues. The Fair Labor Standards
Act (FLSA) prohibits unpaid labor that resembles Use written agreements to confirm that volunteers are
employment. not employees and are not entitled to wages or benefits.
This helps avoid misclassification and protects the
organization from labor law claims.

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