I am learning a bit here as I research the issue. I am referring to non-profits with an annual budget of less than $10 million. I couldn't find statistics on those with an annual budget of less than $10,000. Of those, there is a claim rate of 1% per year. Of those claims 95% are related to employment issues. The LACA doesn't have any employees (although my wife does volunteer to fold, address, and apply postage to the newsletters. If I fire her, believe me, she will be compensated). Therefore, statistically, we would have an exposure of 0.05% if our risk is average.
I am just having a hard time trying to justify spending 15% of our annual income to mitigate against a liability issue that, at most, is less likely than a lightning strike. Craig's example of someone slipping at the table is certainly more likely than a lightning strike. But, if the venue organizer doesn't have insurance for that possibility they have no business putting on a public event.
The IRS has cancelled the non-profit status of organizations participating in "so called" political activities (primarily conservative and all before Jan, 2017 to my knowledge) in the past. One must select the battles they wish to fight. Loss of our non-profit status would be devastating and we could not afford to legally challenge it, no matter how likely or unlikely that is now, or in the future.
