In order for an organization to be found negligent, the injury must be tied directly to the entity's breach of its duty of care. If the four elements exist in a given situation, a court may hold an organization liable for an injury or damages. One of the greatest risks facing a nonprofit is the failure to provide the requisite level of care required under the circumstances. The required standard of care, however, varies with the situation, the people involved, and the community in which the incident takes place. Nonprofits serving children or other vulnerable populations must exercise a higher level of care than if the agency serves adults.
Every organization owns some property even if it is antiquated office furniture and computers.
The damage or destruction of the nonprofit's property could impair the organization's ability to continue operations. A fire, tornado, flood, wind, explosion, vandalism, theft or electrical malfunctions can cause damage to the organization's property. The need to abandon or temporarily vacate unusable offices would severely impact the operations of most if not all nonprofits. The organization could face substantial costs to locate and establish temporary or new offices. A property loss has both operational and financial consequences.