Nonprofit Waivers to Reduce Risk
Risk is an inherent part of running a nonprofit organization. Any time you are working with people, there is the possibility of financial harm to the organization, accidents and other physical harm to the people involved, and the threat of legal action for various reasons. Liability waivers and agreements exist to protect the organization. They cover areas like risk awareness, agreeing to follow policies and safety rules, release of claims, medical care consent, indemnification, confidentiality, and publicity/photo release.
Nonprofits considering what waivers might be appropriate to their organization need to begin with a nonprofit risk assessment. This process identifies what risks are associated with the organization’s particular activities. Once the risks are defined, the relevant waivers can be drafted.
Waivers are not a one-size-fits-all situation. Even a general liability waiver needs to be tailored to the specific organization and activities. Though it is impossible to list every potential scenario, waivers should be an honest reflection of the potential risks involved in volunteering or participating in a particular event. This includes clearly stating the risks.
The activities and programs of organizations change over time. While new programs may require waivers to be created as the program launches, an annual review of waivers is the best way to ensure that all waivers reflect current activities and programming.
Waivers and agreements vary based on the three main groups who need to sign waivers — board members, volunteers, and participants. Each of these groups has different roles, responsibilities, and risks within the organization.
“Waivers and agreements vary based on the three main groups who need to sign waivers — board members, volunteers, and participants.”
Board member waivers and agreements
Board members take on many different roles within an organization and often step into volunteer work at events or other programs. Due to the board member’s heavy involvement, there are several types of waivers and agreements for them to sign. While they are not all strictly liability waivers, they all contribute to a reduction of risk surrounding board activities.
● Liability waiver – This waiver covers the general risks involved in volunteering for the organization, outlines the activities that are expected, and contains a release of liability.
● Confidentiality agreement – In this document the board member agrees to protect confidential information. It is important to note that, when in board meetings with legal counsel, discussing the contents of that meeting with others waives your right to confidentiality, which cannot be reinstated.
● Conflict questionnaire – If conflict of interest arises for a board member, it must be reported on an annual conflict questionnaire. Conflict of interest can lead to penalties and legal trouble if they are not properly acknowledged and dealt with.
● Board agreement – This outlines the duties and responsibilities of board members and is an acknowledgement that the board member will take on the responsibilities to the best of their ability.
Volunteer waivers
While volunteers do not carry the same level of responsibility as board members, the activities they engage in carry risk to themselves and others. A general liability waiver should be used, which can be similar to the liability waiver that board members sign. Due to the differences in responsibility and activities, it may need to be slightly altered for general volunteers.
With both volunteers and participants, there may be differences in the liability waivers for adults versus minors. With minors, it is important to be sure that the person signing the agreement has the authority to release liability for the minor. This may require them to agree that they are either the parent or have legal custody of the child and legal authority to sign waivers.
Participant waivers
Participating in almost any sort of activity assumes some risk. Participants need to sign both a liability waiver and a photo release. The liability waiver is required and should be tailored to the risks of participating in the event. Photo releases should give the participant the option of not appearing in photographs. If a participant opts to not sign the photo release, this decision must be respected, and the organization needs to ensure their photo does not appear in media or promotional materials for upcoming events.
As with volunteers, minor participants need a release to be signed by a parent or guardian who has legal custody of them.
While thinking about the risks involved in nonprofit activities isn’t a fun activity, it’s imperative that nonprofit organizations understand the potential risk and have the correct waivers in place for board members, volunteers, and participants.
If you need help creating waivers to protect your organization and individuals who participate in activities, reach out to the Nonprofit Solutions team for an initial consultation.
