What Is the FCRA? The Fair Credit Reporting Act, Explained for Nonprofits (2026)
The FCRA is the federal law that governs background checks. Here’s the definition, the duties it puts on nonprofits that screen volunteers, and how to stay compliant.
On this page
Almost every rule about running a volunteer background check traces back to five letters: FCRA. Here’s what it is and what it asks of your organization.
FCRA — definition
The Fair Credit Reporting Act (FCRA) is a U.S. federal law that regulates how information about consumers is collected, shared, and used in consumer reports — including background checks. It applies whenever you use a consumer reporting agency to screen a volunteer.
What the FCRA requires of your nonprofit
- Disclosure & authorization. Before running a check, give the applicant a clear, standalone disclosure that you’ll obtain a background check, and get their written authorization.
- Permissible purpose. Only run a check for a legitimate reason — screening a volunteer for a role is one.
- Adverse action. If you might decline someone based on their report, follow the adverse-action process (pre-adverse notice, waiting period, final notice).
- Use accurate, current information. Rely on a CRA that verifies records and honors reporting limits, and let people dispute errors.
Does the FCRA apply to volunteers?
When you use a background-check company (a CRA) to screen volunteers, the FCRA’s framework generally applies just as it would for employees. Treating volunteer screening with the same care isn’t just compliant — it protects the people you serve and your organization’s duty of care.
How VolunteerBadge keeps you compliant
VolunteerBadge builds the FCRA process into the product: the disclosure and authorization are part of the application, every record is human-reviewed for accuracy, and the pre-adverse and adverse-action notices are generated for you. You get compliant screening for $5 a check without becoming an FCRA expert. See how compliance works →
Related: What is a consumer report? · What is adverse action? · The full screening glossary
Compliant volunteer screening, made simple. Create a free VolunteerBadge account →
