Are My Donations Paying to Fight A Lawsuit?
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While these types of claims hurt any organizations bottom line, they can be especially detrimental to nonprofits that rely on donations to make up a large portion of their revenue stream. Donors want their money to be used to help your organizations cause, not to pay off mistreated employees. In some cases, donors have actually sued nonprofits over how their donations were used. To protect your organization against potential liability, its important that you minimize EPL claims while accurately documenting the use of donated funds.
Donated Funds: In situations involving EPL claims, donated funds must be properly managed to avoid backlash from donors. It should come as no surprise that donors may not be happy if their donations are used to cover part of a payout that results from your organizations poor internal practices. The last thing you want is for a given employees legal action to spark litigation from donors. The problem is, nonprofits that rely heavily on donations may have no other means to cover damages awarded to an employee. To avoid these complications, its important to stop EPL claims with good employee practices before they have the chance to turn into lawsuits.
Employment Practices: More and more employees are taking legal action against their employers for what they see as discriminatory practices in the workplace. With the potential costs they may bring, an EPL claim can be incredibly damaging to a nonprofit organization; especially a small one. Implementing appropriate employment practice standards to stop harassment and discrimination will reduce the chances that an employee can make a successful claim, while also creating a positive atmosphere throughout your organization.
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