Do Georgia nonprofits face D&O claims from donors or grant funders?

Yes. Georgia nonprofits that file 990s and have taken restricted grants or donor contributions face potential donor and funder litigation if funds are misapplied. Grant agreements sometimes include audit requirements and compliance obligations that, if breached, can trigger claims. D&O covers the defense costs and settlements from these claims. Even a groundless claim from a disgruntled donor can cost $30,000 to $80,000 to defend without D&O.