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What Should I Pay for D&O Liability Insurance?

October 15, 2026 by Michael Simkins

Recently, a Spokes member asked a simple question: “We just received a quote for Directors and Officers insurance. Does the premium seem reasonable?”

Good question! To help answer it, I decided to compare what three local nonprofit organizations I know are paying for Directors and Officers (D&O) liability insurance.

Here’s what I found:

OrganizationAnnual Cost
Recreational club — 501(c)(7)$740
Spokes — 501(c)(3)$1,854
Community civic league — 501(c)(4)$2,230

That’s quite a range! But as I dug deeper, I discovered that comparing premiums alone can be misleading.

For example, Spokes is the only one of these organizations with paid employees. Its $1,854 annual cost includes $713 for Employment Practices Liability Insurance (EPLI), which protects against certain employment-related claims, plus a $250 broker fee. The D&O portion costs just $891.

All three organizations carry $1 million in D&O coverage, but their policies differ in important ways. Some have no deductible (technically called a retention), while others require the organization to pay thousands of dollars before coverage kicks in. Another significant difference is whether legal defense costs reduce the amount available to pay a judgment or settlement.

I also discovered something surprising. The organization paying the highest premium is a small, volunteer-run civic league with no employees. Yet its policy includes provisions designed for homeowners associations, even though the organization has no authority to regulate neighborhood properties. That raises the possibility that the insurer may not fully understand the organization’s activities and risks.

So, how can you tell whether your nonprofit’s D&O insurance quote is reasonable? Here are five things to consider:

  1. Coverage limits and deductibles. How much protection are you purchasing, and how much would your organization have to pay out of pocket if a claim arises?
  2. Legal defense costs. Are attorney fees and other defense expenses included within the coverage limit, or are they covered separately? This can make a substantial difference.
  3. Employment practices coverage. If your organization has employees, does the policy include protection against employment-related claims such as wrongful termination, harassment, or discrimination?
  4. How the insurer classifies your organization. Does the insurer accurately understand what your nonprofit does? An incorrect classification could affect both premiums and coverage.
  5. Exclusions. What isn’t covered? Pay particular attention to exclusions that might apply to your organization’s specific activities and risks.

The bottom line: Don’t evaluate D&O insurance on price alone. Two policies with the same $1 million coverage limit may offer substantially different protection. Ask your insurance broker to walk you through these five considerations—and don’t hesitate to request a competing quote.

A little homework could save your nonprofit money while ensuring that its board members and officers have the protection they need.

Are Your Board Meetings Making the Best Use of Everyone’s Time?

October 1, 2026 by Jordan Jerkovich

At a recent Spokes workshop, The 5-Star Board Chair, presenter Alisa Chatinsky, CEO of NPO Success Inc., shared strategies for helping board chairs lead more effective, strategic meetings. Judging by the conversation in the room and feedback afterward, a couple of ideas really hit home with our nonprofit leaders.

Spend less time reporting and more time governing

One of the biggest takeaways? A board meeting shouldn’t be dominated by reports.

It’s easy for a meeting to become a series of updates: the Executive Director reports, committees report, financials are reviewed, and suddenly most of the meeting is gone.

Instead, consider what information board members truly need to hear during the meeting versus what they can review beforehand.

One strategy Alisa discussed is using a simple board dashboard to give members an at-a-glance look at the organization’s most important information and indicators. Rather than walking through lengthy reports, a dashboard can quickly orient the board to what is on track, what has changed and what may require attention.

That leaves valuable meeting time for what is difficult to accomplish over email or in a report: discussion, questions, problem-solving and strategic decision-making.

Give every meeting a purpose

Another idea that resonated with participants was creating an annual board meeting calendar.

Rather than building each agenda from scratch, map important governance and strategic topics across the year. One meeting might include a deeper look at finances, another board recruitment and succession, another programs and impact, and another progress on the strategic plan.

A calendar doesn’t mean those are the only topics the board can discuss that month. Instead, it helps ensure important conversations don’t continually get pushed aside by whatever feels most urgent.

It also helps board members see the bigger picture: What is our board responsible for accomplishing this year, and when will we make time to do it?

View a sample annual board meeting calendar.

A few more ways to make board meetings count

The National Council of Nonprofits offers additional recommendations for making meetings more strategic, outcome-oriented and productive. Among them:

  • Send the agenda in advance so members arrive prepared for the conversations and decisions ahead.
  • Assign timeframes to agenda items to keep the meeting moving and demonstrate respect for everyone’s time.
  • Consider a consent agenda for routine, noncontroversial items requiring board approval, preserving more meeting time for substantive discussion.
  • Park off-topic discussions for another time rather than allowing tangents to derail the agenda.
  • Periodically ask how meetings are working. A quick board self-assessment or post-meeting survey can identify what’s working and what needs to change.
  • Document decisions. Minutes provide an important legal record as well as institutional memory for the organization.

Explore the National Council of Nonprofits’ Effective Board Meetings for Good Governance for additional tips and resources.

Building a Better Board of Directors

September 18, 2026 by Jordan Jerkovich

Finding people willing to serve on a nonprofit board can be difficult. Finding the right people can be even harder.

It can be tempting, particularly when there are empty seats to fill, to focus on who is available and willing to say yes. But filling a seat doesn’t necessarily strengthen a board. A new member may care deeply about the mission but lack the skills the organization currently needs. Someone else may enthusiastically agree to serve, only to become an infrequent participant once the meetings begin.

A recent Blue Avocado article, “7 Ideas to Build a Healthy Board Nominating Process,” by Rand E. Morgan, makes the case for approaching board recruitment differently: as a strategic, intentional and ongoing responsibility rather than something a board tackles shortly before it needs new members.

Here are seven ideas from the article worth considering:

1. Recruit year-round.

Don’t wait until a board vacancy appears to start thinking about candidates. Morgan recommends that board members, staff and the nominating committee continually identify prospective members and maintain a running list of people who might bring value to the organization. He also encourages nonprofits to look beyond the most obvious or established community leaders and consider emerging leaders who may bring different perspectives.

2. Make nominating an ongoing responsibility.

Similarly, the nominating committee shouldn’t spring into action once a year and then disappear. The article recommends maintaining an active committee that continually develops and evaluates the organization’s pool of potential board members. It doesn’t have to be large; Morgan suggests a small group of board and community members who know the organization well.

3. Know what your board actually needs.

Rather than starting with Who do we know?, start with What do we need?

Look at the skills and experience already represented on your board, the gaps that will emerge as members rotate off and the challenges your organization is likely to face in the future. Then consider the characteristics, expertise, perspectives and experience that would help address those needs.

Morgan suggests keeping the organization’s strategic plan at the center of this conversation: Who can help the organization accomplish the goals it has identified?

4. Look beyond your existing circle.

A promising board candidate doesn’t need to be someone a current board or staff member already knows. In fact, someone less familiar with the organization may bring valuable new ideas and perspectives.

If you identify someone whose background and strengths align with what your board needs, don’t automatically rule them out simply because no one can make a personal introduction.

5. Consider a trial run.

Not sure how someone will perform as a board member? Consider inviting them to serve on a committee first.

Committee participation provides an opportunity to see whether a prospective member comes prepared, asks thoughtful questions, contributes useful ideas, works well with others and follows through on responsibilities. It also gives the prospective member an opportunity to become more familiar with the organization before making a larger commitment.

6. Consider temperament, not just a résumé.

Expertise matters, but so does how someone works with others.

Healthy boards don’t necessarily agree on everything. Constructive disagreement and thoughtful questioning can improve decision-making and accountability. The goal is to recruit people who are willing to raise difficult questions while remaining respectful, collaborative and focused on the organization’s mission.

7. Prioritize candidates before approaching them.

Instead of informally asking several people whether they’d be interested in serving and deciding what to do afterward, the article suggests first developing and prioritizing a list of candidates based on the board’s needs.

The nominating committee can then approach its preferred candidate and move to the next person if that individual declines. Other strong candidates can remain on the list for future openings.

Don’t fill a seat just to fill a seat

Perhaps the most useful takeaway is also one of the simplest: an empty board seat isn’t necessarily a problem that needs to be solved immediately.

As Morgan points out, provided an organization has enough directors to meet its bylaws requirements, it may be better to leave a position vacant while searching for the right person than to fill it with someone who isn’t a good fit.

Board recruitment isn’t just about finding volunteers. It’s an opportunity to think strategically about where your organization is headed and who can help it get there.

Source: Rand E. Morgan, “7 Ideas to Build a Healthy Board Nominating Process,” Blue Avocado, September 15, 2026.

How Long Should an Executive Director Stay?

September 4, 2026 by Jordan Jerkovich

For longtime nonprofit leaders, the thought of stepping away can raise some uncomfortable questions: Who will care about the mission as much as I do? Who knows what I know? And who is truly equipped to take the reins?

One exercise worth considering: Look at the three biggest things you worked on this year and label each one “defending” or “building.” How much of your energy is going toward protecting what already exists, and how much is focused on preparing your organization for what comes next?

It’s a simple exercise from a recent Applied Wisdom for Nonprofits article, “How Long Should an Executive Stay in the Job?” The author explores how longtime leaders can naturally become more focused on protecting what they’ve built and raises some thought-provoking questions about leadership longevity and preparing an organization for its next chapter.

Read the article here.

Fundraisers and Tax Reporting

August 20, 2026 by Jordan Jerkovich

Fundraising events can be valuable opportunities to raise funds, engage supporters, and build community around your mission. But behind the scenes, these events can also create tax and reporting responsibilities that are important for nonprofits to understand.

We came across a recent article from Hood & Strong, which offers a helpful overview of some of the financial and tax issues organizations should keep on their radar when planning and reporting on fundraising events.

Many of these considerations are easier to address before an event takes place rather than when it’s time to prepare your Form 990. Establishing a process for collecting the right information can help your organization stay organized, communicate clearly with supporters, and make year-end reporting less complicated.

The article covers several key considerations, including:

  • Financial reporting vs. tax reporting: How fundraising event revenue and expenses may be treated differently for financial statement and tax purposes.
  • Form 990 and Schedule G: When fundraising activities may require additional reporting and more detailed tracking of event income and expenses.
  • In-kind donations: How donated services, facilities, volunteer time, and goods can receive different treatment under GAAP and IRS rules.
  • Donor deductions: Why the full cost of an event ticket may not be tax-deductible when attendees receive meals, entertainment, merchandise, or other benefits in return.
  • Donor disclosures: When nonprofits may need to provide participants with information about the fair market value of the benefits they receive.
  • Recordkeeping: The importance of tracking event revenue, expenses, donated goods, and attendee benefits so that information is readily available when it’s time to prepare tax filings.

Read the full article from Hood & Strong here.

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DISCLAIMER: Spokes offers informed advice and recommendations, not professional counsel. Blog content is current as of the date shown. Individual posts are not necessarily updated, so please confirm the accuracy of the information, especially of older posts.

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As Spokes members since 2020, our organization experienced firsthand the invaluable support and resources Spoke’s provides. From director round tables to workshops, even during the challenges of COVID-19, Spokes and their team has remained steadfast in its commitment to nurturing and empowering non-profits like ours. We are incredibly grateful for their unwavering dedication, which has been instrumental in our sustainability and growth. Thank you, Spokes, for being an essential partner on our journey.

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Recent Articles

  • What Should I Pay for D&O Liability Insurance?
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