Charitable organizations have philanthropic objectives, and look out for the social well-being of the society. As such, they are treated differently in each state, depending on the state laws. In some cases, such organizations get exemptions from taxes and tariffs. Larger nonprofits operate in several states and might have to face litigation and retaliation for a variety of reasons. Most nonprofits prefer to stay away from legal disputes, but where money is involved, litigation is an ever-present danger.
The most common case against charitable groups is made by family members of a recently deceased person. The charity is usually named as a beneficiary of the person's estate; it's intended as a gift for social benefit. In some cases, close family members try to contest with the charity for control of the estate. This puts the nonprofit organization in a difficult position, and they must then fight a legal battle to deal with these charity disputes.
Other common forms of litigation against charitable organizations include tort lawsuits and employment lawsuits. Charitable organizations are not as financially stable as others, which can often change the way employees are treated. Unorthodox employment practices may lead to severe litigation that's difficult to deal with.
It is convenient for charitable organizations to get insurance that protects them from lawsuits. General liability insurance might be necessary in case the court orders the organization to pay heavy compensation and damages. The money involved in nonprofits makes them a target for frivolous lawsuits. It is important that these organizations have insurance to protect themselves.
If your nonprofit is facing a lawsuit, it is advisable that you contact an experienced attorney. The attorney might be able to resolve the dispute for you and save you the headache of prolonged litigation.