Running a nonprofit involves a considerable amount of risk exposure. Operating any type of physical location, managing employees and volunteers, and providing services to clients creates several elements of liability exposure that nonprofits need to be proactive about addressing. Here are some important aspects of risk management that officers and directors need to consider.

Obtain Comprehensive Insurance Coverage

Getting insurance for liability and potential losses is a fundamental part of nonprofits’ risk management strategies. Specialized nonprofit insurance programs can give nonprofits affordable access to vital insurance policies:

  •         Property insurance

  •         General liability

  •         Director and officers

  •         Employment practices liability

  •         Auto insurance

  •         Worker’s compensation

Enforce Effective Policies

An organization’s employees and volunteers will benefit from clear policies that are aimed at mitigating risk. These policies will help the organization advance its mission while also reducing risk exposure.

  •         Employee and volunteer screening

  •         Financial management

  •         Accident prevention

  •         Anti-harassment

  •         Anti-discrimination

Provide Ongoing Staff Training

Key training initiatives will help create safe working environments and client experiences. Nonprofits need to train staff and volunteers extensively to prevent potential loss or liability issues.


It’s imperative for nonprofit managers to remain focused on safeguarding their organizations against risk. Ultimately, they need to prioritize comprehensive insurance, well-devised policies, and thorough training procedures in order to effectively mitigate their risk exposure.