Whether known, unknown or a combination thereof, it’s worth considering the risks your nonprofit may face. Many of the most devastating losses in nonprofit history involve dangers that seemed relatively minor…until they didn’t!
Part of our commitment to the Georgia nonprofits we serve is to best protect these organizations with the most comprehensive insurance coverage available at a great rate. Additionally, we work to make our organization leaders aware of how to minimize their risk in the first place.
So, the first step? Knowing what risks to watch out for! Melanie Lockwood Herman, executive director of the Nonprofit Risk Management Center, presented a list of the Top 10 Risks Facing Nonprofits in the AICPA Not-for-Profit Industry Conference. Those risks, according to the article presented in The Nonprofit Times, included1 :
- RISK 1: Unstable financial structure. The less cash available, the greater the danger when revenue is delayed or undersized.
- RISK 2: Inadequate fiscal and risk oversight. This involves making a competent financial and nonprofit Insurance advisor part of your financial strategy.
- RISK 3: Ignoring Fraud Risk. There are three basic types of fraud risk: against, by and through your nonprofit.
- RISK 4: Permitting a leader/organization member/volunteer to be above suspicion. News headlines tend to exploit this mistake time and time-again.
- RISK 5: Neglecting the act of succession planning. On average, boards only spend two hours a year on CEO succession planning.
- RISK 6: Inadequate departure planning and execution. Like they say, the only constant in the life is change.
- RISK 7: Insufficient of crisis planning. This is where the unknown needs to be considered—we don’t get to choose the source or cause of the crises we face.
- RISK 8: Poor donor relationship management. This slowly weakens a nonprofit’s lifeline.
- RISK 9: Unmanaged conflict on the management level.
- RISK 10: Impractical governance practices that’s well implemented and understood
As always, the metro Atlanta NonProfit Insurance Problem Solvers at Georgia NonProfit Insurance, a division of Gillman Insurance, would welcome a chance to provide you with a free coverage review! Request your review on the Nonprofit Insurance portion of our website, or call 888.869.6509 today!