We're a Nonprofit in NY: Do We Need Workers Comp?

If your New York nonprofit has paid employees, yes, it must carry workers compensation for them, just like a for-profit business. What is different is the volunteer side: unpaid volunteers of a nonprofit are exempt, and so are a few specific roles such as clergy performing only religious duties.

Who this is for: Directors and administrators of a New York not-for-profit deciding who has to be covered by workers comp. Workers comp pays medical bills and part of lost wages when a worker is hurt on the job, and it protects the organization from injury lawsuits.

The short version

Paid staff: paid nonprofit employees must be covered, from the first one.
Volunteers: unpaid volunteers of a nonprofit are generally exempt.
Special roles: clergy doing only religious duties, members of religious orders, supervised amateur athletes, and teachers at religious, charitable, or educational nonprofits are exempt.
Unsalaried officers: a nonprofit can exclude unsalaried officers with Form C-105.52.
Watch the mix: as soon as anyone is paid, that person needs coverage even if most of your workforce volunteers.

Who has to be covered at a New York nonprofit?

The line is pay. New York exempts unpaid volunteers of a nonprofit, but the moment you pay someone for their work, that person is generally an employee who must be covered. A handful of roles are carved out by statute even when paid.

Role	Covered?	Notes
Paid employee (full-time or part-time)	Yes	From the first paid worker
Unpaid volunteer	No	Exempt at a nonprofit (for-profit volunteers are not)
Clergy performing only religious duties	No	Statutory exemption
Member of a religious order	No	Statutory exemption
Teacher at a religious, charitable, or educational nonprofit	No	Statutory exemption
Supervised amateur athlete (nonprofit)	No	Statutory exemption
Unsalaried officer of the nonprofit	Optional	Can be excluded with Form C-105.52
Paid executive director or staff	Yes	Salary means coverage

Volunteers versus paid staff

This is where nonprofits slip up. A volunteer who receives a stipend, a housing allowance, or other pay in exchange for work may no longer be a pure volunteer, and paying them can pull them into coverage. If you are unsure whether a payment turns a volunteer into an employee, price the coverage and confirm the worker's status before you rely on the exemption.

Officers and board members

Unsalaried officers of a New York not-for-profit can be excluded from coverage by filing Form C-105.52. Once an officer is paid a salary, though, that officer is an employee who must be covered like any other paid staff member.

A quick New York example

Illustrative, not a quote. A community arts nonprofit in Albany runs mostly on volunteers but employs one paid part-time coordinator and a paid teaching artist. The unpaid volunteers are exempt, but the two paid staff must be covered from their first shift. The board members serve without salary, so the organization files Form C-105.52 to exclude its unsalaried officers. When the coordinator trips over a cable during a setup and sprains an ankle, the policy pays the medical bill and lost wages. Had the nonprofit assumed that being volunteer-driven meant no coverage was needed, it would have had an uninsured employee and faced Board penalties.

Real questions New York owners ask

Our New York nonprofit runs entirely on unpaid volunteers. Do we need workers comp?

Generally no. Unpaid volunteers of a nonprofit are exempt in New York. The requirement starts when you pay someone for their work, at which point that paid person usually must be covered.

We pay one part-time coordinator. Does that trigger coverage?

Yes. A single paid employee, even part-time, means the nonprofit must carry workers comp for that person. Being mostly volunteer-run does not change the rule for the paid worker.

Are our clergy and teachers covered?

Several roles are exempt by statute, including clergy performing only religious duties, members of religious orders, and teachers at religious, charitable, or educational nonprofits. Other paid staff still need coverage.

Can we leave our unpaid board officers off the policy?

Yes. A not-for-profit can exclude its unsalaried officers by filing Form C-105.52. Once an officer draws a salary, that officer becomes an employee who must be covered.

We give a volunteer a small stipend. Are they still exempt?

Maybe not. Paying a volunteer can turn them into an employee for coverage purposes. If a stipend or allowance looks like pay for work, confirm the worker's status before relying on the volunteer exemption.

Does workers comp also protect the nonprofit from being sued over an injury?

Yes. When you carry coverage, workers comp is normally the injured worker's only remedy, which shields the organization from most injury lawsuits. Going without coverage removes that protection.

Who enforces this for nonprofits?

The New York State Workers' Compensation Board administers and enforces the requirement for nonprofits the same as for businesses, including penalties and stop-work orders for uninsured paid staff.

Why New York owners choose Morrow

We shop the right market for you. New York is an open, competitive market: you can buy coverage from any private carrier the state authorizes or from the state-run New York State Insurance Fund (NYSIF), so Morrow shops multiple insurers to find the best fit instead of leaving you with a single option.
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 New York guides

Every New York 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. New York rules and penalty amounts can change, so verify current requirements with New York State Workers' Compensation Board or a licensed advisor before you rely on them. Last updated: July 2026.