Nonprofit Insurance Program

Tips to Surviving a Lawsuit

By Alexa Connelly
April 11, 2013

Nonprofit organizations depend on donor funding for daily running of the organization. This kind of organizations main aim is to serve the community in their area of specialty. To get funding for their activities nonprofit organizations need to prove by writing realistic proposals to the donors. Organizations also need to include in the proposal; how they run and manage their organization.

Managing directors should ensure that the set by laws that governs them touches on the vision and the mission of the organization. Volunteers and employees duties should also be stated clearly. By doing this the organization will look organized and credible to the donors.

Not every time operations run smoothly in a nonprofit organization, there are times conflicts arise. Policies should be set to address such issues; this action will not only favor the organization running system but will also attract donors for the organizations transparency.

When you receive notice of a lawsuit as an organization it is a challenging experience. What you should do is to stay calm, and allow the legal aspect of the law to take charge. This will go a long way in protecting the organizations interest.

A law suit has consequences to an organization; therefore it should be handled with care. It can affect the image of an organization which means little funding from donors or at times no funding at all. That is why the organizations board must come up with strategies to deal with any issue that might crop up. Below are some of the things nonprofit organizations should do when faced with a lawsuit;

  • As an organization you should ensure that you answer the summons within the stated deadline.
  • You should not make any alterations in your records to safeguard the credibility of your organization.
  • Managing director should handle the matter in a professional way by notifying concerned members of the organization, employees, insurance and any other person that might be affected by the lawsuit charge.
  • When authorized by law to send copies to the plaintiff ensure as an organization you keep your original copies and send only copies.

In conclusion avoid much tension when faced with a law suit. Just handle the matter professionally and cooperate with the law. Inform your donors when necessary be transparent with the charges and concerns of the opponents to safeguard the organizations interest.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free Savings Analysis Form

or Call 800.673.2558

All content 2021 Nonprofit Insurance Program, All Rights Reserved. Privacy Policy