Nonprofit organizations may be held liable for discriminatory practices applied by outsourced suppliers.

Nonprofit organizations can be liable for discriminatory practices by their outsourced suppliers if they know or should have known about the discrimination and failed to take corrective action. This is known as "vicarious liability" and applies to any organization, regardless of its nonprofit status. Therefore, nonprofits should be diligent in selecting and monitoring their suppliers to ensure they comply with anti-discrimination laws.