Info You Can Use: Volunteer Liability

An appreciative nod to the Gene Takagi at Non Profit Law blog for linking to a Charity Lawyer post about a non-profit’s liability in respect to volunteers.

Guest blogger Deanna Rader notes that a non-profit may be liable for the actions of their volunteers under a doctrine known as respondeat superior which holds that an employer can be responsible for the acts an employee commits in the course of executing their duties. Some states have extended this concept to include volunteers.

In this context, Rader suggests that care be taken in selecting and training volunteers.

* How will volunteers be utilized? The risk of liability increases as the volunteer is given more responsibility and independence. Carefully choose the responsibilities that will be given to volunteers. Also, there should be a clear delineation between the tasks performed by employees and those performed by volunteers.

* What selection criteria should be used? You should use care to ensure that the volunteers selected are fit to serve in the positions at your agency. Your selection criteria may differ based on the responsibilities given to different volunteers. If you are using volunteers to serve children, disabled individuals, or other vulnerable populations, your selection criteria may include a background investigation and criminal history check. If your volunteers sort food for a food bank serving adults, however, a background investigation may not be required.

* What training is necessary? Before putting volunteers to work, they need to be trained to perform the assigned tasks. Otherwise, you could be held liable for their negligent performance of those tasks if it causes injury to others. Also, the nonprofit organization could be held liable if a volunteer who is not properly trained injures himself or herself because of inadequate training.

* How will the volunteers be supervised? Volunteers should have appropriate supervision based on the tasks assigned. A warehouse volunteer who is performing physical labor may not need close supervision, whereas volunteers dealing with vulnerable populations may need to be closely monitored.

* How will problems be addressed? Although good volunteers provide invaluable assistance, bad volunteers can expose you to substantial liability. Do not be afraid to address problems head-on and terminate the volunteer relationship if a volunteer exhibits inappropriate behavior.

Rader also address injury that a volunteer might take in the course of the service to the non-profit. Employees are covered under worker’s compensation laws while volunteers are not. However, it is important to clearly delineate between the two categories of workers. In addition, employers have a responsibility to provide a safe work environment to everyone who may enter their premises, regardless of employment status.

“An employer also has a duty to maintain safe working premises for an employee. Many states have applied this doctrine expressly to nonprofit organizations, requiring them to maintain a safe place for volunteers to work or finding them to be negligent in failing to provide a safe place for a volunteer to deliver services. This duty can apply even if the volunteer is working off premises while providing services for the nonprofit organization, making the nonprofit corporation liable for the actions or inactions of a third party.”

Among the steps Rader recommends taking are having volunteers sign a general waiver and release that informs them about the possible hazards they may face. She also mentions having volunteers work with a buddy or a team so they are never alone.

All this seems very valuable for the performing arts. I have worked in places where volunteers have done everything from ushering to construction to driving farm tractors. There has been ample opportunity for them to injure themselves or each others. We rent our facility out to groups and have had other people’s volunteers damage equipment on a number of occasions for which we held the renter liable.

On the flip side, performance groups often don’t have their own facilities and have their volunteers meet them at an unfamiliar place like my theatre to help them put up a show. In such a situation, you are dependent on the performance facility’s maintenance program and good practices to keep your volunteers safe.

Info You Can Use: Beware Non-Profit Identity Theft

Non-Profit Law Blog editor Gene Takagi encourages all non-profits to take note of a recent investigation by Forbes magazine that uncovered someone redirecting non-profit registrations to a post office box in Las Vegas. The majority of the registrations have been for religious organizations, but the weakness in the IRS’ system could be exploited to hijack nearly any non-profit’s registration.

Someone has hijacked the tax identity of more than 2,300 tiny or defunct nonprofits, apparently taking advantage of a hole in a new electronic Internal Revenue Service filing system to list the same person as a charitable official at the same mail box drop in Las Vegas.

[…]

A search on Melissa Data of nonprofits in that zip code produced 2,370 listings. A random spot cross check by Forbes of dozens of them on the official IRS site listed Alexander and the N. Rainbow Blvd. address in every instance. The nonprofits originally were located elsewhere all across the country.

[…]

Another nonprofit listed by the IRS as being led by William Alexander out of Las Vegas is Godsline Ministries. The clothes-donation charity used to be located in McMinnville, Ore.–and died there about seven years ago, according to Rob Rabon, who ran it with his then-wife. “It only lasted two or three years,” he said. “We went to the state and filed papers dissolving it.”

Yet the IRS proclaims Godsline alive and well, with the same tax identification number as when the Rabons ran it.

The problem has its roots in the recent requirement that non profits making less than $25,000 file a statement to that effect. If you recall, there was a big panic last year that these small non-profits would lose their status because they were unaware of the requirement. Since these small entities don’t have a lot of resources, the IRS endeavored to make it easy for them to verify their status with a simple postcard or online filing.

Because so few details are required in the filing, there isn’t a lot of verifiable data being supplied to the IRS. This makes it easy to slip in and replace the authentic organization. The Forbes articles notes that the names of the small non-profits in danger of losing their status were published in an attempt to make people aware of the impending change, but in fact may have been serving to let fraudsters know which organizations were vulnerable to identity theft.

Stuff To Ponder: Alternatives To Forming A Non Profit Org

If your new year’s resolution is to do good this year, go for it! But if you are thinking of starting up a non-profit, you should be aware of the challenges you face. Both the normal processes to follow when starting a new organization as well as emerging scrutiny by the federal government. The Non-Profit Law blog has been packing a lot of informational goodness in their posts over the end of last year and the transition in to this one. Among their tweets of the week for last week was news of extra scrutiny of non-profits by the IRS.

The Gene Takagi and Emily Chan who write Non-Profit Law Blog also linked to a piece they wrote for the American Bar Association outlining the considerations a lawyer and their clients should use to evaluate whether they should actually form a non-profit organization. Many of the suggestions made are just good sense for forming any business including evaluating the need, whether it duplicates the efforts of another group, if there is sufficient clientele and a support base present in the community. They make suggestions of alternatives to consider.

But another person they link to in their tweets of the week really does a great job of providing these alternatives. Allison Jones makes suggestions for 6 alternatives with links to more information about pursuing these options.
I had never heard of an intrapenuership myself.

* Free agent: More and more people are affecting social change outside of an organization. Harnessing social media, you can mobilize your network to take action or support a cause without the hassle of incorporating….

* Informal group/club: If the issue you are addressing is small or very specific (cleaning up a local park or stacking shelves in a local food pantry) you may just be able to round up a group of friends and get to work….

* Giving circle: … In giving circles you pool money and resources together to support an organization you all select. The focus is usually on a local organization, often extends beyond giving financial support, and the circles can be formal or informal….

* Local chapter of a national organization: … You can build on existing resources, support, and guidance to make a difference. Organizations that focus on professions, such as Young Nonprofit Professionals Network, Grant Managers Network, or Emerging Leaders in the Arts, tend to have chapters across the country. However other organizations in different causes, like the Reeve Foundation are open to supporters launching local chapters as well….

* Intrapreneurship: Do you work or volunteer for an awesome organization? Maybe you noticed a need because of the work you do? This can be tricky as many organizations are pressed for resources and time. However, you can harness your organization’s infrastructure to make small steps in addressing the need you have identified. Organizations are more willing to support innovation if there is someone (i.e. YOU!) willing to take the lead. Start by collecting information on the need and presenting it to your organization….

* Fiscal sponsorship: In fiscal sponsorship a nonprofit will allow you to operate under their 501c3 status….You should find an organization whose mission and work align with what you want to do and reach out to them directly….

More On Mergers And Alliances

I have had non-profit mergers on the mind of late due to some personal experience so it is no wonder that two entries on the subject from different blogs caught my attention today.

The first was a book review by Gene Takagi at Non-Profit Law blog. He recommends Nonprofit Mergers & Alliances by Thomas A. McLaughlin. Takagi starts out referencing a quote from the book supporting the old truism that it is best to enter a negotiation in a position of strength.

“Indeed, the book had me at “hello” or, rather, its first sentence: ‘The best time to consider a merger or an alliance is before it is necessary, when coming together with another organization will mean combining strength with strength, and when the collective energies and the creativity of the two or more entities can be used proactively instead of being sapped by the demands of crisis management.’ “

This concept is actually central to the commentary made in the second blog post I saw today, Drew McManus talking about Philadelphia Orchestra and Philly Pops decision not to merge. The former would have absorbed the latter. Drew cites the troubles the Utah Symphony and Utah Opera had with their merger. The orchestra and pops adopted a gradual approach to the merger and that revealed some of the potential difficulties they might face as a single entity. Both organizations will work in close partnership, but retain separate governance structures.

As you might imagine from the title of the book he reviews, Takagi notes that there are different stages to both mergers and alliances and lists them out. According to Takagi, the book outlines the pros and cons to both approaches and provides some good advice about very complex undertakings.

The book may be a good resource for the next generation of non-profit leaders. Apparently McLaughlin feels that “nonprofit services are fragmented and how consolidation is part of a nonprofit’s life cycle.” Given all the talk about mergers of late, I believe there is more behind that statement than just an attempt to sell a book about how to accomplish such things.