Combat Holiday Stress by Protecting Your Nonprofit Business
The holiday spirit is upon us — and so is the desire to give back. Charitable giving traditionally reaches its height during the holiday season, with nonprofits experiencing a surge in their number of volunteers between Thanksgiving and New Year’s. “Giving Tuesday,” which occurs the Tuesday after Thanksgiving, is a day dedicated to giving via online holiday spending. It signifies the start of “the giving season” for the nonprofit community.
During the holidays, people may be inclined to give more generously than during the rest of the year. Because of the uptick in charities requesting donations, the holiday spirit bringing out people’s generosity, and the pending December 31 deadline for tax-deductible philanthropic gifts, this surge is an annual trend. According to Nonprofits Source, not only does nearly one-third (31%) of annual giving tend to occur in December, 12% of all giving happens during the last three days of the year.
Charitable giving by individuals in America fell 1.1% in 2018. However, “because giving by foundations and companies increased, total giving in the U.S. increased slightly, by 0.7%, to $428 billion,” according to CNBC. It is no wonder charities have customarily received the bulk of their yearly donations during the last couple months of the year: According to a 2012 GuideStar Survey, 50.5% of the organizations surveyed said they received the majority of their contributions between October and December.
Even when the holiday factor is removed, charitable giving has increased on a year-round basis for the past several years. This increase is revealed in the following statistics:
- Total charitable giving grew 4.1% in 2016 and 5% in 2017
- In 2017, the largest source of charitable giving, $281.86 billion or 72% of total giving, came from individuals; this was followed by foundations ($58.28 billion/15%), bequests ($30.36 billion/8%) and corporations ($18.55 billion/5%)
- Charitable giving accounted for 2.1% of gross domestic product in 2016
The above is inspiring news from a philanthropic perspective; however, the increase in charitable giving may make nonprofits vulnerable to a number of exposures. Small organizations can find themselves liable for claims that include:
- Bodily injury
- Misappropriation of funds
- Breach of fiduciary duty
- Defense costs
- Cyber threats
In addition to a comprehensive package policy at a cost affordable to small nonprofits, we’ve enhanced our blanket special events coverage to include:
- First three events with up to 250 attendees included at no charge
- Ability to offer general liability on a blanket event basis up to 2,500 attendees
- Ability to include host and/or commercial liquor liability on a blanket basis up to 2,500 attendees
Under the Nonprofit Package team’s Charity and Business Association 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 coverage for:
- General liability
- Directors and officers
- Employment practices
- Hired and non-owned auto
- Abuse and molestation
- Educational enhancement endorsement
- Blanket special events with host liquor available
Eligible Charity classes include booster clubs, parent/teacher organizations, charitable fundraising and community support groups. Eligible Business Association 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 these organizations, such as discounted background checks, cyber risk information and safety resources.
Please contact your Nonprofit Package underwriter today for more information on our Charity and Business Association products.
As always, thank you for your support and business.
Contact Andrew Guido
Assistant Vice President | 888-523-5545, ext. 2334
Written by Kristin Ryan
December 5, 2019