Your nonprofit has an important mission to carry out.


Making a Difference

Your nonprofit has an important mission to carry out. Every dollar you spend either supports or depletes your ability to serve. Most organizations work with a limited budget, but all face exposures and risk management challenges that need to be met. In short, you need a broker experienced in nonprofit insurance with your mission in mind.
Heffernan’s Nonprofit Practice cares about your mission and understands your unique insurance needs. Serving more than 4,000 nonprofit clients nationwide, Nonprofits Insurance CHOICE is a division of Heffernan Insurance Brokers offering exclusive products and services not available through any other agency. Our alliances with nonprofit-focused insurers are among the best in the industry, ensuring you have access to the best programs and the most competitive prices.
Heffernan’s reputation and success was built through niche practice business such as nonprofit, construction, healthcare, transportation, hospitality, food industry, real estate and technology. With ten branch offices coast-to-coast and approximately 450 staff, Heffernan’s reach spans virtually every industry.
M. Brant Watson| (925) 330-1151 |E-mail | Website

Nonprofits: Plug the “Money Leaks”

As we enter another year, it’s an exciting time for nonprofits.  However, with substantially more donations coming in this time of year, you need to be on your game when it comes to money management.Beware of these money leaks:
Theft and Fraud
. Theft can be perpetrated by anyone including vendors and contractors. A dishonest party could impersonate your nonprofit to host a fundraising event, and then pocket the profits and run.

  • Cybercrime. Internet and phishing scams are getting more sophisticated every day. Even Portland Public Schools almost transferred $2.9 million to a scammer pretending to be one of their trusted building contractors.
  • Regulatory compliance. The IRS has strict rules for nonprofits to maintain their tax-exempt status. Don’t let a slip-up cost you fines or loss of your tax exemption.
  • D&O liability. Your board’s directors and officers make the business decisions, including managing funds. A liability claim against one of them for misallocation of funds, wrongful termination, discrimination, harassment, or another event could be costly.
  • Rogue volunteers. If one of your volunteers steals or causes injury or damage, your organization could get hit with a negligence claim, and that can be costly to defend and settle.

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Beware of Nonprofit Board and Reputation Exposures

Nonprofits can be sued over a wide range of claims, just like their for-profit counterparts. In fact, Insurance Journal reports that directors and officers liability claims occur twice as often in nonprofits compared to private companies.

The increase in lawsuits could stem from a number of possible issues.  Nonprofits may be so focused on their cause that they neglect other issues.
Nonprofits may incorrectly believe their nonprofit status makes them an unlikely target.
Individuals serving on nonprofits may be busy with other duties, and they may be working outside their normal sphere.
Donors often have high expectations for how funds are managed.
Nonprofits often work with vulnerable populations.
Volunteers may not be screened properly.
Regardless of the cause, nonprofits get sued – a lot. When this happens, the nonprofit’s financial stability and reputation can be put in jeopardy.
Nonprofits depend on their reputation.
Reputation is important to all corporations, but this is especially true in the case of nonprofits. As Risk & Insurance explains, nonprofits depend on their reputations to secure grants and donations.

Many things can damage a nonprofit’s reputation, from claims of mismanaged funds to inappropriate actions of volunteers. Some threats may come from outside. For example, cyber attacks that reveal personal data could damage a nonprofit’s reputation. Fundraising fraud, described in Risk & Insurance as people who impersonate nonprofits to elicit and steal donations, is another worrisome threat.

Contact me today to learn more about the best possible insurance for your needs.

Best Regards,

M. Brant Watson
Senior VP
D: 925.295.2506
C: 925.330.1151
 brantw@heffins.com

 

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