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A nonprofit organization is a business granted tax-exempt status by the Internal Revenue Service (IRS). Donations made to a nonprofit organization are typically tax deductible to individuals or businesses that make them, but the nonprofits must make financial and operating information public so that donors are certain their contributions have been used effectively. Nonprofits pay no income tax on the donations they receive or any money they earn through fundraising activities. Nonprofit organizations are sometimes called NPOs or 501(c)(3) organizations based on the section of the tax code that permits them to operate.

Small to midsized NPOs and public companies with a market capitalization below $1 billion have very similar risk management needs.  Most of these companies are too small to hire an in-house risk manager[G1]  however each tends to have significant management liability and operational exposures. [G2] 

Executives, Officers, Directors, and Administrators of NPO’s have significant management liability exposures.  Failure to establish cooperate governance standards and a comprehensive risk management/management liability program exposes the personal assets of Executives, Officers, Directors, and Administrators.