We're a Georgia Nonprofit: Do We Need Comp?

Georgia does not exempt nonprofits from workers compensation. A 501(c)(3) is treated like any other employer and must carry coverage once it has three or more employees regularly in service (O.C.G.A. section 34-9-2). Unpaid volunteers are generally not employees, so they usually do not count toward the three, but paid staff do.

Who this is for: Georgia nonprofit leaders and board members, from an all-volunteer group thinking about its first paid hires to an established charity with staff.

The short version

No nonprofit exemption. Georgia applies the same three-employee rule to charities that it applies to businesses.
Paid staff count. Once three or more paid employees are regularly in service, coverage is required (O.C.G.A. section 34-9-2).
Volunteers usually do not count. An unpaid volunteer is generally not an employee under the Act, so they normally are not part of the three.
Part-time and seasonal staff count if they are regular, with no minimum hours and no waiting period.
Grants and landlords often require it, so many nonprofits carry coverage before they are strictly required to.

Who counts at a nonprofit

The test is the same as for any Georgia employer: count the people who work for pay under your direction. Volunteers, board members who are not paid staff, and true independent contractors sit outside the count in most cases.

Person at the nonprofit	Counts toward the three?	Notes
Full-time paid employee	Yes	Covered from day one once subject
Regular part-time or seasonal paid staff	Yes	No hours minimum and no waiting period
Unpaid volunteer	Generally no	Not an employee under the Act in most cases
Unpaid board member	Generally no	Counts only if also a paid employee
A worker you direct day to day but call a contractor	Often yes	Georgia looks at control, not the label

Volunteers and why coverage still matters

Because volunteers are generally not employees, an all-volunteer group with no paid staff usually is not required to carry workers comp. That does not make injuries free. If a volunteer is hurt, comp will not respond, and the nonprofit may face a general liability claim instead, which is a different policy. As soon as a nonprofit hires paid staff and reaches three, the comp duty attaches. Many charities buy a policy earlier because a grant agreement, a lease, or a partner organization requires proof of coverage, and because a single staff injury can strain a tight budget.

Turning paid hires into a policy

The practical trigger for most nonprofits is growth in paid roles. A program that adds a coordinator, an assistant, and a part-time outreach worker can reach three regular paid employees without noticing, and at that point coverage is mandatory from each worker's first day. If your organization relies heavily on volunteers, we can help you document who is paid staff and who is a genuine volunteer so your policy is rated on the right payroll and you are neither over-charged nor short of a required policy.

A Decatur example

Illustrative, not a quote. A Decatur food-bank nonprofit runs on volunteers plus two paid coordinators, then hires a third paid staffer to manage a new grant. That third paid hire pushes it to three employees regularly in service, so Georgia now requires a policy, effective from the new staffer's first day. The dozens of volunteers still do not count toward the three. When the grant agreement asks for proof of coverage, the nonprofit provides a certificate the same day. See our workers comp for nonprofits page.

Real questions Georgia owners ask

Does a Georgia nonprofit need workers comp?

Yes, once it has three or more paid employees regularly in service. Georgia does not exempt nonprofits, so a 501(c)(3) follows the same three-employee rule as any other employer.

Do volunteers count toward the three at a nonprofit?

Generally no. An unpaid volunteer is usually not an employee under the Act, so volunteers normally do not count. The three-employee test looks at your paid staff.

How many paid staff before a nonprofit needs a policy?

Three. Coverage becomes mandatory once three or more paid employees are regularly in service. Part-time and seasonal paid staff count if they are regular.

Are board members counted as employees?

Not if they are unpaid. An unpaid board member is generally not an employee for coverage. A board member who is also paid staff would count like any other employee.

A grant requires proof of workers comp but we have two staff. What now?

You can buy a policy voluntarily to meet the grant requirement, even though the state does not require it below three employees. We can produce proof of coverage for the funder quickly.

What if a volunteer gets hurt at our nonprofit?

Workers comp generally will not respond, since volunteers are not employees. That kind of injury is usually a general liability question, which is a separate policy worth reviewing.

Do part-time program staff count toward the three?

Yes. Regular part-time and seasonal paid staff count the same as full-timers, with no minimum hours and no waiting period, so a few part-time roles can reach the three-employee line.

Why Georgia owners choose Morrow

We shop the right market for you. In Georgia you buy workers' comp on the open market from any private insurer licensed in the state, because Georgia has no state fund, and if no carrier will take you the NCCI-run assigned risk plan is the guaranteed fallback, so we can shop your rate freely and still have a backstop for hard-to-place work.
We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.

Related Georgia guides

Every Georgia business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.

This guide is general information, not legal advice. Georgia rules and penalty amounts can change, so verify current requirements with Georgia State Board of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.