Study Examines Non-Profit Exposures and Legal Risks

February 1, 2006

Non-profits face exposure to a wide array of legal risks, according to a study on non-profit organizations’ risks. The study suggests that some exposures are unique to non-profits and may arise, for example, from an organization’s tax-exempt status.

As non-profit organizations feel increasing pressure to do more with fewer resources, many now rely on more traditional business models to increase efficiency that can expose them to additional legal risks, the study says.

The study, “Be Prepared: Non-Profit Organizations’ Legal Risks and Protections” prepared by Ross, Dixon & Bell, is to assist non-profits in mitigating their increasing risks as they adopt business models that resemble their for-profit counterparts. The article study also can be used to assist insurance brokers who handle the insurance coverage for non-profit organizations to protect them from the increased exposure.

With case studies like, “Defamation Claims,” “Tax Law and Fiduciary Duties,” and “Employment Claims Can Be Costly,” the study provides a reference for management of non-profit organizations on litigation. It references Sarbanes-Oxley styled reforms to non-profit organization management and discusses anti-trust exposures and employment liability—the single largest source of suits against management of non-profit organizations.

The study is available free of charge to non-profit organizations and insurance brokers. To download the report, visit www.altru.com.

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