Many nonprofits contract with third party vendors to provide services essential to their operation as a business. These services run the gamut and typically include services such as janitorial, technological systems, building contractors, and transportation providers or something occasional like a bounce house provider for your fundraiser. A key to evaluating the risks of your nonprofit’s operation is to assess responsibility for liabilities that may arise in the provision of services by third parties. For example, who is responsible for physical injuries to a janitor? Or for replacing a window broken by the building contractor? What about for a serious vehicular accident involving your transportation provider and your clients, or an injury to a participant if the bounce house is defective?
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