By Bob Weil

We have recently seen a surge in interest among Coulter clients, and nonprofit organizations in general, in conducting background checks on volunteers.  In some states (including Virginia), those who work or volunteer in assisted living facilities, day care centers, etc. are required to undergo criminal record checks.  It is in fact prudent nonprofit management to have background checks done of nonprofit volunteers who, in the course of their duties, are charged with or do in fact handle money.  Volunteers are screened for many reasons, including many of the same reasons an employer would conduct a screening.  Among the cited reasons are: 1) public safety, 2) compliance with legal requirements, 3) limiting nonprofit liability exposure, 4) protection of vulnerable populations, 5) avoidance of loss of business, etc.

 Since 9/11 a number of states have been adopting laws that either require or facilitate employee and volunteer background screening.  Nevertheless, there is no one law, federal or state, that says all volunteers must be checked.

 Volunteer screening can take several forms.  The organization may have direct access to state and federal criminal history records, or it may retain an outside service to conduct the search/screening.  However, the person who is being checked must be given prior notice of the screening, the nature of the screening and must provide his or her consent.  It should also be a written consent.

 More and more nonprofit organizations are relying upon commercial background screening companies, which can be more cost effective and less time consuming.  These companies are familiar with screening volunteers and aware of the compliance requirements of the Fair Credit Reporting Act (notice and consent prior to background check, notice of negative information before an adverse action is taken, a right to receive a copy of the report, a right to appeal an adverse decision, proper disposal of information contained in the report).

 When heading in the direction of conducting background checks of volunteers, it is imperative to remember that prior notice and consent are critical.  Notice that such a check will be conducted needs to be very clear and should incorporate a broad range of information that can be collected.  It is also advisable to institute a written association policy for screening volunteers as well as written privacy and data security policies.

 Written notice to an existing or potential volunteer who will be the subject of the background screening should state:

1. What information will be collected for the background screening;
2. How the information will be collected (i.e. government sources or commercial screening vendor);
3. The name and contact information of the commercial screening vendor;
4. Sources consulted for the screening (i.e. state DMV and state correction agencies);
5. Period of time encompassed by the screening;
6. Whether the screening will be conducted once, annually, or on a continuing basis;
7. A statement of the consequences of declining to authorize the screening;
8. A notice of additional rights.

 At the very least, a nonprofit volunteer screening policy should:

1. Clearly state the organization’s position and practice for screening volunteers;
2. Identify the volunteer positions that require screening;
3. Identify the screening required for each volunteer position;
4. Identify the scope and sources for conducting the volunteer screening/background checks;
5. Identify the offenses or findings that would disqualify an applicant or current volunteer;
6. State the fees involved in screening and the responsibility of the volunteer for all or any portion of the fees (no none, if that is the association’s policy);
7. Identify the frequency of the background screening.

In the end, background screening of those who handle nonprofit money as part of their employment or as a volunteer is a prudent loss prevention practice.  For organization’s who have volunteers handling large sums of money, such a practice may very well inure to the organization’s financial benefit when it comes to insurance premiums for their D&O policy.