Is Workers' Compensation Coverage Required?
Workers' Compensation coverage is not required for a nonprofit entity that is not compensating individuals (including executive officers) for their services. Please note that compensation includes stipends, room and board, and other "perks" that have monetary value. Money used solely to offset expenses incurred while performing activities for the nonprofit are not counted as stipends.
Workers' Compensation coverage is not required for a nonprofit that is designated under the IRS tax code as a religious, charitable, or educational organization if there are no employees other than compensated executive officers who do not perform manual labor.
Workers' Compensation coverage is required for a nonprofit corporation or unincorporated association that is not classified as religious, charitable, or educational (as designated under the IRS tax code) if there are compensated executive officers.