Attention Not-for-Profits: Your Volunteer Management Practices May Need Immediate Review

This article was originally published in Law360 Canada.

The Ontario Superior Court’s decision in Hannan v Scouts Canada, 2024 ONSC 5361 marks a significant development in the legal framework governing volunteer relationships within non-profit organizations. By establishing that well-publicized policies and procedures for volunteers can create binding obligations, this ruling may necessitate a revision of volunteer management practices in the non-profit sector.

Mr. Hannan was a long-time member (a “Scouter” since 1958) and long-serving volunteer holding leadership positions within Scouts Canada. In November 2023, his annual application to renew his volunteer status was denied by the Group Commissioner. The position of Group Commissioner, also a volunteer role, is responsible for the appointment of Scouters within a group. Mr. Hannan alleged that the decision not to renew his volunteer status was in breach of the bylaws, policies, procedures, and rules of Scouts Canada.

The Court’s analysis centred on whether these internal organizational policies and bylaws could create legally enforceable obligations. In the case of Scouts Canada, the Court concluded that they could. The Court emphasized several features of Scouts Canada, including that it is highly structured and formalized along legal lines, that the structures developed by Scouts Canada are legal structures similar to workplace policies, that volunteers are recruited with a number of well-publicized policies and procedures, and that nothing in the annual screening or renewal process or policies themselves suggests they were not intended to be binding.  

Based on a review and interpretation of the relevant Scouts Canada policies, the Court concluded that where the Group Commissioner purports not to renew a volunteer for breaches of the Code of Conduct or for unsatisfactory performance, the decision appears disciplinary. The volunteer has the right to assume that the relevant policies (which provide the volunteer with procedural fairness) will apply.

The Court issued a declaration that the progressive discipline and appointment of Scouters policies applied. It further declared that the assertion that Mr. Hannan failed to meet performance standards or breached the Code of Conduct was unfounded and without merit. In addition, the Court awarded costs on a substantial indemnity basis in the amount of $50,372.

This decision reflects an important development in the legal understanding of volunteer relationships. While volunteers continue to provide unpaid service, their relationship with organizations may carry defined legal obligations which the volunteer can enforce if the not-for-profit fails to meet its obligations. This development suggests that the trend toward increasing formalization of volunteer management practices comes with corresponding implications for organizational risk management and a need to address those risks in policy development.

Hannan v Scouts Canada is a significant precedent regarding the rights of volunteers and the obligations of non-profit organizations. Organizations would be well-advised to seek professional legal counsel in reviewing and updating their volunteer management policies and procedures and in dealing with any disputes that may arise. Early consultation can help prevent costly disputes such as that which occurred in Hannan v Scouts Canada.