selling soap for fundraiser

[lenarenee]

The president of the Lost Boys of Sudan has asked me about providing soap for them to sell at a fundraiser.

I know. But I so want to make this work. How quickly can I get insurance?

Another issue - I get insured, donate my soap to the Lost Boys organization and someone sues for some reason - who do they go after?

Is selling melt and pour liability free?

 

[cmzaha]

unfortunately nothing is liability free and they will go after you and the Lost Boys of Sudan, plus in the case of m&P they would probably go for them too. It just keeps rolling down the line...

 

[lenarenee]

I was hoping you'd see my post Cmzaha, thank you for your input. I wasn't surprised by your answer either.

I'm looking into WSP's insurance.

 

[dixiedragon]

Is it possible you'd be covered by the organization's insurance? Or your homeowner's insurance?

 

[BrewerGeorge]

Is it possible you'd be covered by the organization's insurance? Or your homeowner's insurance?

Maybe they could "hire" you on a 1099 for just a couple of bucks and you could make the soap as their employee? Maybe there is some kind of similar situation for volunteers of charitable organizations.

ETA: Look into the Volunteer Protection Act of 1997

 

[Cindy2428]

It's such a shame when someone wants to do something nice and has to worry about being sued. Our local Sam's club used to donate the unsold rotisserie chickens at closing to the homeless shelter. Someone complained that they couldn't get a "free" chicken too, so they stopped. Now they get thrown in the dumpster.... What a waste.

 

[lenarenee]

Alright Dixie and BG - working on those too! Thanks!

It's such a shame when someone wants to do something nice and has to worry about being sued. Our local Sam's club used to donate the unsold rotisserie chickens at closing to the homeless shelter. Someone complained that they couldn't get a "free" chicken too, so they stopped. Now they get thrown in the dumpster.... What a waste.

That's beyond shameful, too. Common sense i.e. giving viable food to those who need it gets thrown out by greed.

Reminds of some public backlash a few years ago when one of the "Lost Boys" of Sudan was working at a grocery store until he quit when he witnesses the massive amount of food tossed out in the bins behind the store.

He was one of the first and original Lost Boys who spent years walking to safety, then years in refugee camps where they ate one meal day. Naturally he couldn't stand the wasting of food and didn't want anything part of it, but it threatened his assistance in housing by refusing the job given to him.

The Volunteer Protection Act has its limits; it does not protect employees of the non profit, just the volunteers. I didn't investigate further because:

My city does not require me to have a business license unless I receive money. I'm donating (if I decide to do this) product to a non profit.

I am willing to purchase the insurance listed on WSP's website in order to do this. Yes, I guess I could just take the $285 and donate it directly to the charity, but what fun is that?? Plus, as I do give soap away it's a bonus to have a little extra "security" knowing those bars are covered too. I need to call the insurance company back to verify that their insurance covers non-business soap makers.

If I had more time and brain power, I'd scour through the Volunteer Protection Act to see exactly where I would stand; but should someone file a legal complaint, the protection provided by the Volunteer Act would take time to kick in - in other words...they would be legalities and all sorts of stress and other consquences, possibly even court dates before any vindication. So, I just think insurance is the best route for me and The Lost Boys organization.

 

[Saranac]

How quickly can I get insurance?

The insurance from WSP is quick--once you pay, you get the supporting documents (I think) emailed. . . or downloaded. . . I can't remember which, but it's immediately.

 

[BrewerGeorge]

The Volunteer Protection Act has its limits; it does not protect employees of the non profit, just the volunteers. I didn't investigate further because:

My city does not require me to have a business license unless I receive money. I'm donating (if I decide to do this) product to a non profit.

I am willing to purchase the insurance listed on WSP's website in order to do this. Yes, I guess I could just take the $285 and donate it directly to the charity, but what fun is that?? Plus, as I do give soap away it's a bonus to have a little extra "security" knowing those bars are covered too. I need to call the insurance company back to verify that their insurance covers non-business soap makers.

If I had more time and brain power, I'd scour through the Volunteer Protection Act to see exactly where I would stand; but should someone file a legal complaint, the protection provided by the Volunteer Act would take time to kick in - in other words...they would be legalities and all sorts of stress and other consquences, possibly even court dates before any vindication. So, I just think insurance is the best route for me and The Lost Boys organization.

I was throwing the employee idea out separately from the volunteer protection act.

I read a little about that act because I was curious, and as long as Lost Boys org is a 501(c)(3) volunteer work done for them should be liability-free for you. Situations like this are exactly what the law was intended to protect.

Even if you decide to go with the insurance, I would still set it up so that you're working as a volunteer. That is, have the charity purchase the ingredients and have them shipped to their location - with money you donated perhaps. Then take the ingredients and volunteer to make them into soap that the charity can then sell. So you're not donating soap, you're donating cash and time. That will give you an extra layer of protection above and beyond any insurance you buy.

None of this should affect the charity's liability, whatever you do. They're responsible for mitigating their own risk and presumably have their own insurance already. Anybody slimy enough (or really injured enough) to sue in a situation like this will sue everyone they can. I can't imagine the fact that you have personal insurance would change that, they wouldn't let the charity 'off the hook.'

 

[Zany_in_CO]

I'm looking into WSP's insurance.

I would email Debbie May at WSP and tell her what you're up to and see what she has to say about donating soap to a worthy cause and whether or not the "businss" insurance is worth the expense. Debbie May has been very involved with lobbying congress about getting a fair law passed for home-based bath & body businesses. I'd be curious to know what she has to say about this.

 

[lenarenee]

I was throwing the employee idea out separately from the volunteer protection act.

I read a little about that act because I was curious, and as long as Lost Boys org is a 501(c)(3) volunteer work done for them should be liability-free for you. Situations like this are exactly what the law was intended to protect.

Even if you decide to go with the insurance, I would still set it up so that you're working as a volunteer. That is, have the charity purchase the ingredients and have them shipped to their location - with money you donated perhaps. Then take the ingredients and volunteer to make them into soap that the charity can then sell. So you're not donating soap, you're donating cash and time. That will give you an extra layer of protection above and beyond any insurance you buy.

None of this should affect the charity's liability, whatever you do. They're responsible for mitigating their own risk and presumably have their own insurance already. Anybody slimy enough (or really injured enough) to sue in a situation like this will sue everyone they can. I can't imagine the fact that you have personal insurance would change that, they wouldn't let the charity 'off the hook.'

Let me see if I understand this; having the supply receipts "in their name" so that they own it, then I volunteer to make those supplies into soap. This protects me?

Does the location of the soap manufacturing matter?

 

[SunRiseArts]

Homeowners insurance does not cover it.

I get mine through ULI for 230 a year.

If you want a link, just pm me.

 

[BrewerGeorge]

Let me see if I understand this; having the supply receipts "in their name" so that they own it, then I volunteer to make those supplies into soap. This protects me?

Does the location of the soap manufacturing matter?

IANAL, but that is how I read it. In the same way that a volunteer making food at a soup kitchen is not personally liable for an allergic reaction, you should be protected while making soap. There are several good commentaries in the first page of Google hits.