The 33% rule is an IRS public support test for 501(c)(3) public charities, not an insurance rule. It requires at least one-third of a charity’s support come from the general public or government sources to maintain public charity status.
FAQ_category: (HIDDEN) Industry FAQs
Yes. A single injury at a fundraiser or a single wrongful-termination claim can exceed the operating budget of a small nonprofit, and most venues and grantmakers require proof of coverage before working with the organization.
Most general liability policies include volunteers as insureds, but the language varies by carrier. Volunteer coverage should be confirmed in writing before binding, especially for organizations relying heavily on volunteers for direct service delivery.
General liability covers third-party bodily injury and property damage from operations and premises. D&O covers lawsuits against board members and executives over governance decisions, mismanagement, and employment practices claims.
Pricing depends on revenue, payroll, volunteer count, program activities, populations served, and claims history. A small all-volunteer nonprofit pays substantially less than a social service agency with paid staff and youth programming, so a tailored quote is the only accurate number.