1.1
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Why It Matters
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Welcome to your daily briefing on nonprofit developments in Georgia. Today we're covering 4 key stories including updates on georgia nonprofit headlines, background & context. Let's dive in.
1
Georgia Nonprofit Headlines
1 story
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2
Background & Context
3 stories
2.1
Volunteer screening: the liability that comes from process, not policy.
Negligent-screening claims arise not from failing to have a screening policy, but from failing to follow the policy that exists. A documented policy with inconsistent enforcement is harder to defend than no policy at all, because the deviation is evidence of negligence.
Why It Matters
Insurance carriers tighten coverage on organizations with screening-process gaps. The cost of consistent enforcement is small; the cost of a single uninvestigated incident can close the organization.
2.2
The restricted-fund violation auditors find most often.
Donor-restricted gifts must be tracked separately and used only for the restricted purpose; using them for general operations — even with intent to "pay back" later — is a fiduciary breach and an audit finding. The most-common fact pattern: cash-flow shortage in operations, restricted-grant balance available, transfer "borrowed" with no formal repayment plan.
Why It Matters
State attorneys general have authority over restricted-gift compliance and have pursued individual board members and executives. Auditors are required to disclose restricted-fund violations in the management letter.
2.3
Private inurement and private benefit are different problems.
Private inurement is benefit flowing to insiders (officers, directors, key employees); it is an absolute prohibition. Private benefit is benefit to outsiders that is more than incidental to the exempt purpose; it is a question of degree. Both can revoke exemption, but the legal analysis differs.
Why It Matters
Insider transactions trigger automatic intermediate sanctions even when the exemption survives. Outsider benefit triggers a facts-and-circumstances analysis. Distinguishing them shapes the defense.
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DateJul 12, 2026
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