Handling Extracurricular Fundraising Exposures
While it may seem like summer just started, we now find ourselves jumping right into September and back-to-school season. While academics are always at the forefront of a student’s obligations, extracurricular activities account for a significant amount of students’ school experiences.
Many academic-led initiatives and extracurricular activities are supported and organized by nonprofit organizations such as Parent/Teach Associations and booster clubs. These groups “address issues that are important to parents and public school administrators” and “fight for full funding, quality teachers, and capabilities for schools to thrive (PTA.org).”
In addition to being beneficial to the school, these clubs are becoming essential to the existence of extracurricular activities and sports. Due to decreases in school funding, which are sometimes drastic, “extracurricular activities depend primarily on booster clubs for funding, and that amount totals millions of dollars (St. Myer).” Since student responsibilities outside of academics are crucial to their success in and after their high school careers, it is understandable that members of these organizations feel an obligation to thrive. Much of their operations involve events as a means to raise awareness and funds for one or several exposures. These events are excellent ways to help their cause, but can also create possible hazards.
Because these groups operate in the best interest of the students, it’s important not to overlook potential risks. For example, there can be issues arising from decisions involving spending to basic bodily injury. “The fundraising arms race among booster clubs inevitably causes issues (St. Myer).” More serious problems arise when an individual trusted to manage the group’s funds commits criminal acts of mismanagement or embezzlement. “Over a two-year period, more than $2 million was embezzled from booster clubs across the country… In most of those cases, one person had control over all of the organizations’ funds (Wallace).” While booster clubs hopefully do their due diligence in choosing individuals to run these groups, these misfortunes can occur, and it’s vital to have coverage in place for when they do occur.
While the organizations and their volunteers offer valuable services to these students and schools, they can find themselves liable for claims that include but are not limited to:
- Bodily injury
- Physical and sexual abuse
- Contract violations
- Breach of duty
- Misappropriation of funds
- Defense costs
These small organizations need protection, but the dilemma lies in the ability to afford multiple policies to address risks associated with the activities they support. Under the Nonprofit Package Team’s Charity Protector and Business Association Guard products, USLI offers a variety of insurance and value-added solutions for these organizations with new minimum premiums starting at $395. Our comprehensive package policy offers:
- General liability
- Directors and officers
- Employment practices
- Hired and non-owned auto
- Abuse and molestation
- Educational enhancement endorsement
- Blanket special events coverage with host liquor available
Eligible Charity classes include booster clubs, parent/teacher organizations, community gardens, charitable fundraising, foundations, car clubs, membership organizations, alumni associations and arts and culture support organizations. Eligible Business Association Guard classes include chambers of commerce, professional and trade associations and business membership groups.
USLI’s Business Resource Center also provides value-added resources that greatly benefit charitable organizations and membership groups, such as discounted background checks, marketing safety, cyber breach and much more.
Please contact your Nonprofit Package underwriter today for more information on our Charity Protector and Business Association Guard products!
As always, thank you for your support and business.
Contact Andrew Guido,
Assistant Vice President, Underwriter | 888-523-5545 Ext. 2334
Contact Paul Nusspickel,
Underwriter | 888-523-5545 Ext. 2725
Written by Kristin Logan
September 6, 2018