The Explosive Increase in Charitable Giving
According to Charity Navigator, nonprofit organizations in the U.S. closed out 2016 with a staggering $390 billion dollars in donations received.
Several years ago, the phrase “going viral” was born, and pertained to all things pop culture and news-related, but charities have also seen the benefits of “going viral.” Online giving through smartphone applications, social media platforms and crowdfunding websites has opened doors to a whole new world of potential donors, with the ability to transfer funds at their fingertips.
Along with exponential growth, nonprofits have also seen rapid changes in the world around them, which carry new and unforeseen risks, many of which are hard to identify in advance. With an estimated 2.5 million nonprofit organizations in the U.S. today, competition for donor funds is now at an all-time high. Scrutiny in how funds are managed has reached a fever pitch, and more stringent reporting requirements have led to a public demand for organizational transparency.
Further questions surrounding federal issues such as tax reform and its impact on individual donor giving, changes to laws governing nonprofits’ ability to endorse political candidates and proposed changes to federal overtime laws all loom as large and yet-to-be-determined changes.
Many nonprofits still feel that directors and officers and employment practices insurance are “nice to have,” as opposed to being critical to their longevity. Consider the following statistics taken from a survey of 10,000 organizations:
- One in every ten claims costs more than $100,000
- Average legal costs of defending a claim: $35,000
We have always been committed to meeting and exceeding the needs of our nonprofit policyholders and are excited to introduce several new features to our Nonprofit Management Liability product as we approach the end of 2017.
A dedicated limit of liability for individual directors and officers, express coverage for wrongful employment acts conducted via social media and early resolution incentive retention forgiveness are just a few examples of new features our policyholders will be able to count on. These features are offered for no additional charge, as are the following existing features:
- Lifetime Occurrence Reporting Provision – makes it easier for a board member to leave their position on a board of directors and sleep soundly knowing that if their predecessors fail to secure a Directors and Officers policy or let it lapse, they will still be protected
- Data & Security endorsement – including separate $50,000 sublimits for data breach expense, identity theft expense, workplace violence expense and kidnap expense
Getting an Instant Phone quote has never been easier; all you need is the applicant name, address, services provided and annual revenues. Please contact your Professional Lines underwriter for more information or a quote, or get a web quote today >>
Contact Chris Deveney
Assistant Vice President, Underwriter, Nonprofit Directors and Officers Product Leader | 888-523-5545 Ext. 2756
Written by Tom Langston
September 7, 2017