Schools — and Fundraising — Are Back in Session

// September 5, 2019
Reading Time: 3 minutes

With summer winding down, fall is in sight, school is back in session, and the focus has shifted from engaging children and young adults in outdoor activities to academic and extracurricular activities. Many academic and extracurricular activities are organized and supported by nonprofit organizations such as booster clubs.

Funding reductions and budget cuts have profoundly impacted nonprofits nationwide, and academic organizations are no exception. As arts, music and sports programs face potential elimination, parents have found ways to support these programs with the creation of booster clubs.

Some schools depend entirely on booster clubs to fund extracurriculars or are only able to offer activities that a booster club can support independently. The number of booster clubs will continue to grow as they act as a safety net for schools in need.

Booster clubs are not only beneficial to schools, but also essential to the existence of extracurricular activities and sports. And since students’ responsibilities outside of academics are crucial to their successes in and after their high-school careers, it is understandable that members of these organizations feel an obligation to prosper. Much of their operations involve putting on fundraisers, as these events are excellent for helping their cause. However, fundraisers can also create possible hazards, and it’s important not to overlook them.

Issues can range from decisions involving spending to basic bodily injury. More serious problems arise when an individual trusted to manage a group’s funds commits criminal acts such as mismanagement or embezzlement. “Over a two-year period, more than $2 million was embezzled from booster clubs across the country,” said Kelly Puckett, chief operating officer of Parent Booster USA, in a June 2018 Oklahoman article. “In most of those cases, one person had control over all of the organizations’ funds.”

Booster clubs can find themselves liable for a variety of claims, including:

  • Bodily injury
  • Abuse and molestation
  • Contract violations
  • Breach of duty
  • Discrimination
  • Misappropriation of funds
  • Defense costs

USLI’s Charities and Business Associations product 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
  • Property
  • Directors and officers
  • Employment practices
  • Hired and non-owned auto
  • Abuse and molestation
  • Crime
  • Blanket special events coverage with host or commercial liquor available
  • Crime

Please contact your Nonprofit Package underwriter today for more information on our Charities and Business Associations product!


As always, thank you for your business.

Contact Andrew Guido
Assistant Vice President | 888-523-5545, ext. 2334

Written by Kristin Logan
September 5, 2019