05 Mar The Volunteer Protection Act protects volunteers, not nonprofit organizations

The federal Volunteer Protection Act (VPA) was enacted to protect volunteers from liability if they cause harm to another while working on behalf of a nonprofit organization. Many nonprofit organizations that rely on volunteers believe that the protections afforded by the VPA extend to the organization itself. This belief, however, is incorrect, and the consequences of this misunderstanding can be severe for nonprofit organizations.

The VPA essentially promotes volunteerism by reforming the laws to provide certain protections from liability abuses related to volunteers serving nonprofit organizations. Pursuant to the VPA, no volunteer of a nonprofit organization (or governmental entity) shall be liable for harm caused by an act or omission of the volunteer on behalf of the organization if:

• the volunteer was acting within the scope of the volunteer’s responsibilities in the nonprofit organization at the time of the act or omission;
• the volunteer, if appropriate or required, was properly licensed, certified, or authorized by the appropriate authorities for the activities or practice in the State in which the harm occurred, where the activities were or practice was undertaken within the scope of the volunteer’s responsibilities in the nonprofit organization or governmental entity;
• the harm was not caused by willful or criminal misconduct, gross negligence, reckless misconduct, or a conscious, flagrant indifference to the rights or safety of the individual harmed by the volunteer; and
• the harm was not caused by the volunteer operating a motor vehicle, vessel, aircraft, or other vehicle for which the State requires the operator or the owner of the vehicle, craft, or vessel to possess an operator’s license or maintain insurance.

While a volunteer may be protected if they cause harm to another person under these circumstances, there are exceptions. Specifically, the VPA’s limitations on the liability do not apply to any misconduct that:

• constitutes a crime of violence or act of international terrorism for which the defendant has been convicted in any court;
• constitutes a hate crime under the Hate Crime Statistics Act;
• involves a sexual offense under applicable State law, for which the defendant has been convicted in any court;
• involves misconduct for which the defendant has been found to have violated a Federal or State civil rights law; or
• occurs while the defendant was under the influence of alcohol or drugs.

Note that while the VPA protects volunteers under appropriate circumstances, it does not protect the nonprofit organization itself. The law specifically states that the VPA should not be construed to affect the liability of any nonprofit organization with respect to harm caused to any person. In other words, nonprofit organizations generally face nearly identical risks as their for-profit counterparts.

Since nonprofit organizations do many of the same things for-profit businesses do (own/lease property, provide services, drive cars, etc.), nonprofit organizations must approach risk management like any other for-profit business. This includes maintaining adequate insurance coverage to protect against any exposures unique to its operations.

If you would like to learn more about reducing the risks facing your nonprofit organization, please contact us.