Online Legal Risks for Nonprofits: Understanding Website Terms and Conditions
With the increasing prevalence of cyber threats and stringent privacy laws, nonprofits must be alert to the potential legal pitfalls associated with navigating today’s digital landscape — especially when managing their website terms and conditions.
These online risks include:
● Third-party content and copyright infringement. It’s critical to ensure that all website content, including text, images, and videos, is owned by the organization or properly licensed. Unauthorized use of copyrighted material or third-party content can lead to costly legal disputes.
● Privacy and data breaches. Collecting personal information from website users requires compliance with privacy laws that protect sensitive donor information; noncompliance can lead to legal liabilities and reputational damage. Website terms and conditions should include a privacy policy that explains how user data is collected, used, and protected by the organization.
● User-generated content risks. A website that allows users to post content, such as comments to blog posts or a forum, can expose the organization to liabilities involving defamatory or infringing content. It’s essential to have clear terms and conditions that outline the acceptable use of online content and disclaimers.
● Enforceability issues. For a website’s terms and conditions to be legally binding, users must consent to them. This typically involves requiring users to check a box indicating their agreement before accessing or using certain website features.
● Ongoing compliance challenges. Laws and regulations regarding websites, data use, and privacy are constantly changing. Organizations should regularly review their website’s terms and conditions, ensuring they are updated and compliant.
● Liability limitations. Website terms and conditions should include clauses that specifically limit the organization’s liability, protecting it in the event of errors, omissions, or other issues that may arise.
Addressing Key Issues
Nonprofit organizations can better mitigate legal risks and protect themselves from potential liabilities by tailoring terms and conditions to their specific needs:
● Set clear guidelines for what is and isn’t allowed on the website to prevent misunderstandings and potential lawsuits.
● Establish liability limits to protect against costs associated with a data breach, user-generated content, and errors.
● Have clear website terms and conditions that build trust with users, assuring that their data is protected.
● Check regional legal requirements for websites to ensure compliance with laws and avoid fines and legal penalties.
● Protect intellectual property by clearly stating how the website’s content may be used and what actions are prohibited.
● Provide clarity on how the website operates, including how disputes will be handled.
Your nonprofit clients face a number of legal risks related to their website terms and conditions. By understanding these risks and implementing best practices, they can better protect their valuable resources and maintain the trust of their supporters.
About Charity First
Charity First is committed to providing our retail partners nationwide with best-in-class underwriting, consistent and responsive service, and risk management services that include directors’ and officers’ liability insurance and accident insurance for volunteers and participants.
To learn more, please contact us at 800-352-2761 or marketing@charityfirst.com.