Mission & History

Nonprofits Insurance Alliance Group is a group of 501(c)(3) nonprofit, tax-exempt insurers whose purpose is to serve 501(c)(3) tax-exempt nonprofit organizations by providing a stable source of reasonably priced liability insurance tailored to the specialized needs of the nonprofit sector and to assist these organizations to develop and implement successful loss control and risk management programs.

The Nonprofits Insurance Alliance Group began as a direct result of the liability insurance crisis of the mid-1980’s, when insurance companies were refusing to offer affordable liability insurance to nonprofits, believing them to be “high risk.”

At the time, Pamela Davis, now President and CEO of the Nonprofits Insurance Alliance Group, was a graduate student at the Goldman School of Public Policy, UC Berkeley.

The following is an excerpt from her testimony before the California Assembly in 1987.

“Between 1984 and 1986, general liability insurance premiums increased 200 percent or more for one out of four charitable nonprofit organizations in California. During that same period, insurance companies canceled or refused to renew the general liability policies of one out of five California charitable nonprofits. Some important human service programs, such as childcare, foster care, group homes and health service were forced to dramatically cut services or close because they couldn’t find affordable insurance.”

With a determination to see nonprofits resume their important work, Ms. Davis proposed the idea of creating a risk pool in her master’s thesis. Risk pools would allow nonprofits to insure themselves and no longer be at the mercy of commercial insurers.

A number of foundations agreed to back the idea and two years later, under her leadership, the Nonprofits Insurance Alliance of California (NIAC) opened its doors. Starting with only $1.3 million in low interest loans, the Group now has more than $415 million in assets. And, yes, we paid off the loans, with interest!

Expanding Beyond California

In 1999, a feasibility study, underwritten by the David & Lucile Packard Foundation and the Bill & Melinda Gates Foundation, was conducted to determine what it would take to expand NIAC’s concept nationwide.

The results of that study yielded the Alliance of Nonprofits for Insurance (ANI) and its captive reinsurer, the National Alliance of Nonprofits for Insurance (NANI). ANI, domiciled in Vermont, began writing policies outside California in 2001 as a Risk Retention Group. The National Alliance of Nonprofits for Insurance (NANI), an affiliate, also domiciled in Vermont, started as a reinsurer that same year.

Together, the organizations in the Nonprofits Insurance Alliance Group insure more than 16,000 nonprofits in 32 states and DC. At year-end 2015, the Nonprofits Insurance Alliance Group had total equity of $176.1 million.

Bylaws

View the ANI Bylaws

View the NIAC Bylaws

Historical Milestones

28 Years of Growth: from a small group of nonprofits in 1989 with $1.3 million in loans from foundations, to more than 16,000 nonprofits in 2016 with their own Group of insurers with assets exceeding $415 million.

1989

  • October 17th, NIAC moves into first office
  • October 17th, 5:04pm, 7.1 Loma Prieta earthquake hits Santa Cruz, California
  • NIAC writes its first policy on November 1.

1991

  • Auto physical damage, directors and officers and umbrella coverages are introduced.
  • Audio visual lending library is launched.

1993

  •  First bill is introduced in Congress to enable tax exemption for charitable risk pools.

1994

  • Reinsurance arrangement with SwissRe is established.
  • Companion property program is developed for members.

1996

  • Congress adds Section 501(n) to the tax code enabling NIAC to be a 501(c)(3).
  • Free employment risk management consultation service is introduced.
  • State of California adds Section 23701z to the Tax Code, enabling state tax exemption for NIAC.

1997

  • NIAC becomes federally tax-exempt under section 501(c)(3) in January of 1997.
  • Free driver training is introduced.
  • NIAC is featured in the PBS series Visionaries, which airs on PBS stations nationwide.

1998

  • $150,000 grant is received from Packard Foundation to develop business plan to expand the NIAC model outside California.
  • Handling of claims is moved in-house—substantial savings!

1999

  • Nonprofits’ OWN enhanced policy form is introduced.
  • $5 million grant is received from the Bill & Melinda Gates Foundation for capital for ANI.

2000

  • NIAC purchases and renovates a new headquarters building in downtown Santa Cruz.
  • $5 million grant is received from the David & Lucile Packard Foundation for capital for ANI.
  • Pamela Davis, Founder, President and CEO, is named one of the 100 Leading Women in the Insurance Industry by Business Insurance.

2001

  • The Nonprofits Insurance Alliance Group starts operation: Alliance Member Services (AMS), National Alliance of Nonprofits for Insurance (NANI), and Alliance of Nonprofits for Insurance, Risk Retention Group (ANI) join Nonprofits’ Insurance Alliance of California (NIAC) to form the Group.
  • All companies are 501(c)(3) nonprofits.
  • ANI begins offering coverage in Colorado, Delaware, District of Columbia, Maryland, Nevada and Virginia.
  • North American Elite (NAE) property program is introduced.
  • A.M. Best Weighs in! NIAC receives A- (Excellent) A.M. Best rating, ANI and NANI receive B++ (Very Good) A.M. Best rating.

2002

  • NIAC Board approves $1 million in returned premium to NIAC members.
  • ANI expands into Connecticut, Michigan, North Carolina and Pennsylvania.
  • Pamela Davis is listed in Nonprofit Times’ “Power and Influence 50”.

2003

  • ANI expands into Iowa, Kansas, Missouri, Nebraska, Oregon, Utah and Washington.
  • NIA Group wins CIO 100 award from IDG’s CIO magazine for positive business performance through resourceful IT management and practices.

2004

  • A.M. Best upgrades NIAC to A (Excellent).
  • Pamela Davis wins first ever award for Policy Innovation from The Goldman School of Public Policy, UC Berkeley.
  • ANI expands into Vermont.
  • Secure website for both members and brokers is introduced.

2005

  • New Flat-Rate D&O coverage is introduced for nonprofits with zero employees.
  • Prior Acts Coverage is now available.
  • Pamela Davis is named one of the nation’s 15 BEST BOSSES by Fortune Small Business and Winning Workplaces.
  • BOARDnetWORK is introduced for members—a free, web-based board management tool.
  • Discounted background check service is introduced.

2007

  • NIAC Board approves Dividend Plan and declares first dividend of $3.7 million for members.
  • ANI expands into Georgia, Hawaii, Idaho and Minnesota.
  • A.M. Best upgrades ANI and NANI to A- (Excellent).

2008

  • NIAC Board declares dividend of $4.2 million for members.
  • ANI expands into Arizona, Illinois, Massachusetts, Nebraska and North Carolina.
  • Blue Avocado, new online magazine, is launched with the financial support of the Group.

2009

  • NIAC Board declares dividend of $4.2 million for members.

2010

  • NIAC Board declares dividend of $5 million for members.
  • A.M. Best rates the NIA Group together for the first time, assigning a rating of A VIII (Excellent) to all companies in the NIA Group. Combined surplus exceeds $100 million.
  • ANI expands into Arkansas.
  • First ever “sequel” of the documentary series Visionaries airs on PBS featuring the growth of the NIA Group.

2011

  • NIAC Board declares dividend of $5 million for members.
  • ANI expands into Florida.

2012

  • NIAC Board declares dividend of $4 million for members.
  • ANI expands to New Jersey, New York, North Dakota, South Dakota and Wisconsin.
  • American Nonprofits is launched with assistance from the Group.
  • Electronic Data Interchange (EDI) web-based portal for brokers is launched.

2013

  • NIAC Board declares dividend of $5.0 million for members.
  • The Nonprofits Insurance Alliance Group wins insurance industry award for web-based portal for brokers.
  • The Group is named one of the Bay Area News Group’s Top Workplaces.
  • Partnership begins with National Assembly Business Services to provide group purchasing discounts to members.

2014

  • NIAC Board declares dividend of $2 million for members.
  • SB 1011 signed by Governor allows NIAC to offer property coverage to members

2015

  • NIAC Board declares dividend of $1 million for members.

2016

  • NIAC Board declares dividend of $2 million for members.
  • NIAC begins directly writing property policies for nonprofits in California.