Any time your nonprofit loans equipment or facilities to someone else, there’s a chance something could go wrong.
Equipment rental agreements protect your nonprofit, its assets, and those using the equipment by ensuring everyone is on the same page about potential harm or damage.
Your waiver should highlight any rules or restrictions regarding the usage of your nonprofit’s equipment or facilities. With a legal document to fall back on in case of damages, theft, or other losses, your nonprofit and its assets will be protected. Plus, this minimizes the risk of damage or injury by ensuring people follow directions.
For example, let’s say your nonprofit loans its community center out for a corporate holiday party. While your nonprofit is excited to generate some extra revenue, the company renting your building may be looking forward to their holiday decorations—nailing Valentine’s Day decor to the wall, hanging snowflakes from the ceiling, or moving your furniture to fit in a Christmas tree.
To mitigate this risk, your nonprofit’s waiver must clearly define the expectations and responsibilities related to the rental. You might have the renter agree to refrain from using tape or nails on the walls. Or, perhaps you’ll permit wall hangings but prohibit them from moving furniture.