If you are in charge of a nonprofit organization, there are many tasks on your to-do list. At the same time, every action you take is open to public scrutiny. As such, navigating the waters of nonprofit management is more or less a careful balancing act. For this reason, many leaders rely on insurance coverage like D&O for nonprofits.

Nonprofit Leaders Come With Liabilities

Because nonprofit organizations receive the majority of funds through donations or grants, a surprisingly large chunk of managing these types of enterprises is political. If funders disagree with a director or officer’s position, it can be costly for the entire organization. Nonprofit leaders also come with many liabilities when it comes to the public eye. Consider, for example, what your relatives say about their least favorite politicians over Thanksgiving dinner. Many people see nonprofit leaders in a similar light because of the necessary lobbying.

Insurance Minimizes Risks

Even if you do not think you need D&O insurance because you believe in your team and leadership of your nonprofit, there is a solid chance that you still do. There is no way to know what the future will hold nor can you control what every leader says and does. In this way, D&O coverage works well as a simple solution for finding common ground. 

At the end of the day, it is always better to be safe than to be sorry whenever you are working with public funds and the promises you make for using them.