Introduction
Volunteers are essential to the success of any not-for-profit (NFP) or charity organisation. However, the departure of a volunteer, if not managed carefully, can expose the organisation to significant legal and reputational risks, particularly concerning confidentiality, data privacy, and intellectual property (IP).
This compliant legal guide provides essential strategies for developing a formal volunteer exit process. It offers practical guidance to ensure your charity meets its legal requirements, protects its interests, and preserves goodwill throughout the transition, reinforcing strong governance and compliance.
The Importance of a Formal Volunteer Exit Process for Your NFP
Understanding the Non-Legal Nature of the Volunteer Relationship
The relationship between a volunteer and an NFP organisation is fundamentally different from that of an employer and employee, and understanding the legal distinctions between volunteers or employees is crucial for compliance. A genuine volunteer arrangement does not create a legally binding relationship regarding the work performed. This means that if a volunteer fails to show up for their duties, the charity has no legal recourse against them.
Conversely, a volunteer cannot take legal action against the organisation if their role is no longer available. Protections available to employees under the Fair Work Act 2009 (Cth), such as the right to bring an unfair dismissal claim, do not apply to genuine volunteers. It is an essential legal point that both the volunteer and the organisation should understand from the outset.
Why Your NFP Organisation Needs an Exit Strategy
Even without a formal employment contract, having a structured exit process is critical for any NFP organisation. A clear strategy helps manage the end of the volunteer relationship smoothly, protecting the charity from potential risks and ensuring operational stability.
A formal exit strategy provides several key benefits for your organisation:
| Benefit | Description |
|---|---|
| Manages Health & Safety Risks | A formal process allows the organisation to end the relationship to meet its duty of care if a volunteer’s presence poses a health and safety risk. |
| Ensures Operational Continuity | A planned transition helps ensure key roles are filled and that the organisation can continue its operations without disruption. |
| Protects Organisational Reputation | Handling departures fairly, transparently, and respectfully helps maintain goodwill and protects the charity’s reputation among stakeholders. |
| Avoids Future Liability | Confirming the end of the relationship in writing provides finality and can protect the organisation from legal responsibility for a former volunteer’s future actions. |
This process is a key component of good governance and volunteer management, contributing to the overall stability and effectiveness of your organisation.
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Key Legal Documents & Obligations for Volunteer Departures
Protecting Confidential Information & Intellectual Property
While a standard volunteer agreement clarifies roles and responsibilities, it is typically not a legally binding contract regarding the work performed. This means that clauses related to confidentiality and IP within such an agreement may not be legally enforceable. For a charity or NFP organisation, this can create significant risk, especially when volunteers handle sensitive information or create valuable materials.
To establish clear and legally enforceable obligations, your organisation should consider using a separate deed of agreement. A deed is a special type of binding promise that does not require the exchange of payment to be valid, making it suitable for the volunteer relationship.
This legal document can specifically cover:
| Legal Area Covered | Purpose in a Deed of Agreement |
|---|---|
| Confidentiality | Creates a legally binding duty for the volunteer not to disclose confidential information, an obligation that continues after their departure. |
| Intellectual Property | Clarifies that any IP created by the volunteer in their role belongs to the organisation, preventing future ownership disputes. |
Using a deed for these specific matters ensures your NFP has legal recourse if a volunteer breaches these critical obligations, without altering the fundamental non-employment nature of the overall relationship.
Managing Privacy Compliance & Volunteer Records
Your NFP organisation has legal obligations to manage the personal information of former volunteers in a compliant manner, which is a key part of a strong data security plan, particularly if it is subject to the Privacy Act 1988 (Cth). When a volunteer leaves, their records, which may contain sensitive information, must be handled securely to protect their privacy and ensure legal compliance.
It is a crucial legal requirement to only retain personal information for as long as it is needed. If there is no ongoing justification for keeping a former volunteer’s data, your organisation must take reasonable steps to either destroy or de-identify it.
Best practice suggests that volunteer records should be kept for at least seven years after the relationship ends. This aligns with the general limitation period for bringing legal action and ensures your organisation is prepared for any potential future claims.
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A Practical Guide to Managing the Volunteer Exit Process
Conducting an Exit Interview & Gathering Feedback
When a volunteer chooses to end their relationship with your NFP organisation, it is valuable to understand their reasons for leaving. This feedback can be gathered through a formal exit interview, which helps ensure the volunteer completes their role in a positive manner.
The insights gained from an exit interview can help your charity improve its volunteer program. By identifying any gaps in your volunteer management, you can:
- Enhance the experience for current and future volunteers
- Better plan for the continuation of the roles they were performing
Finalising the Departure with Clear Communication & Documentation
It is essential for your organisation to confirm that the volunteer relationship has ended in writing. This documentation serves multiple important purposes:
- Provides finality for both the volunteer and the charity
- Serves as an important record for compliance and governance
- Protects your NFP from potential liability
Without formal documentation, your organisation could face challenges if a former volunteer continues to represent the charity after their departure has been informally discussed. For instance, if their actions cause harm or reputational damage, the lack of proper documentation would make it difficult to prove they were no longer associated with your charity.
Securing Your Organisation’s Property & Access
A critical step in the volunteer exit process is ensuring the return of all organisational property. This is a key legal requirement to protect your charity’s assets and information.
| Category | Examples of Items to Secure or Revoke |
|---|---|
| Organisational Property | Important documents and files, uniforms or branded apparel, keys, access cards, or other security devices. |
| System & Premise Access | Building access codes, IT system logins, email passwords, and access to social media accounts or other electronic platforms. |
Handling Difficult Volunteer Exits & Protecting Your Charity’s Reputation
Ending the Relationship Due to Performance or Conduct Issues
When a volunteer’s performance or conduct doesn’t meet your NFP organisation’s standards, ending the relationship may become necessary. To ensure fairness and transparency, your charity should follow a structured performance management process before making this decision. This approach provides consistency and clarity for everyone involved.
If an issue arises, follow these key steps:
- Notify the volunteer and arrange a meeting, offering them the opportunity to bring a support person
- Clearly outline the specific performance or conduct issues
- Provide the volunteer with an opportunity to respond to the concerns raised
- Explain why the current performance or conduct is unacceptable and detail the required improvements
- Discuss any reasonable support, such as additional training, that your organisation can offer
- Advise the volunteer of potential consequences if their performance or conduct doesn’t improve, which may include ending the volunteer relationship
It is a crucial legal guide for good governance to keep written records of these conversations and any agreed-upon actions, a key principle of ACNC Governance Standard 2. If issues persist and the relationship must end, this documented process demonstrates that your organisation acted fairly.
Preserving Goodwill Through Recognition & Respectful Farewells
How your NFP organisation manages a volunteer’s departure, even a difficult one, significantly impacts its reputation. A respectful farewell process helps preserve goodwill and acknowledges the volunteer’s contributions, reinforcing a positive organisational culture. This serves as an essential legal and reputational safeguard for any compliant charity.
Even when ending a relationship for performance reasons, it is good practice to handle the process with transparency. While your organisation is not legally required to provide a reason for ending a volunteer relationship, doing so can prevent misunderstandings and protect your charity from reputational harm. A former volunteer who feels treated unfairly may share their experience, potentially discouraging others from supporting your cause.
Acknowledging a volunteer’s past contributions is a key part of this process. Simple acts of recognition, such as a letter of thanks, can help maintain a positive relationship and show that your organisation values all who give their time. This approach ensures the departure is managed in a way that respects the individual while protecting the long-term interests and standing of your NFP organisation.
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Conclusion
Effectively managing volunteer departures requires a formal exit process that addresses key legal obligations, from protecting confidential information to handling difficult exits respectfully. A compliant strategy ensures your NFP organisation maintains operational stability, meets its legal requirements, and safeguards its reputation through strong governance.
To ensure your volunteer exit strategies are both compliant and effective, contact the expert not-for-profit and charity lawyers at LawBridge today. Our specialised services for NFP and charity organisations provide the trusted legal guidance you need to protect your charity and achieve peace of mind.
