{"id":14766,"date":"2020-05-06T10:24:49","date_gmt":"2020-05-06T14:24:49","guid":{"rendered":"https:\/\/causeinspiredmedia.com\/?p=14766"},"modified":"2020-05-06T10:24:49","modified_gmt":"2020-05-06T14:24:49","slug":"nonprofit-risk-management-during-covid-19","status":"publish","type":"post","link":"https:\/\/causeinspiredmedia.com\/news-article\/nonprofit-risk-management-during-covid-19\/","title":{"rendered":"Nonprofit Risk Management During COVID-19"},"content":{"rendered":"

As the world deals with the COVID-19 crisis, nonprofit organizations are struggling to not only weather the effects of the pandemic themselves, but also provide support to their communities during this time of great need. Due to the evolving nature of the situation, it is incredibly important for nonprofit leaders to provide consistent and adaptive leadership in order to effectively manage the situation. This involves direct collaboration and communication among the board of directors and the CEO or Executive Director to ensure that all perspectives are understood and considered.\u00a0<\/span><\/p>\n

In this blog, we\u2019ve broken down some of the most important leadership factors that should be considered as nonprofits handle the COVID-19 epidemic. We understand that this is an uncertain and challenging time, but this guide is a good place to start when planning for your nonprofit\u2019s future.<\/span><\/p>\n

Effective Communication<\/h4>\n

Communication during this time is key for not only individuals working inside and with your nonprofit, but also for the community you serve. With misleading and confusing information circulating widely throughout the internet, it can be difficult to provide all the right answers. However, employees, volunteers, supporters, and recipients of your services will look to your nonprofit for clear messaging about how COVID-19 has affected your organization. It is increasingly important to keep a keen eye out for misleading information, and act with prudence.\u00a0<\/span><\/p>\n

While communicating effectively with your beneficiaries and supporters should always be prioritized, communication between the board and executive director will be more important now than it has been in the past. During this pandemic, the board should be working closely with the executive director to manage the situation and address any external threats. While the chief executive is responsible for carrying out the board\u2019s plans, the board must still continuously review the strategy and respond to any new threats, or unexpected curve-balls.\u00a0<\/span><\/p>\n

Risk Assessment & Management<\/h4>\n

One of our clients, <\/span>BoardSource<\/span><\/a>, states that, \u201cas stewards of the organization, the board must be sensitive to the existence of risk, set the tone for dealing with it, and demand that proper processes and tools are in place to keep the organization safe and ready to act when a situation demands it.\u201d\u00a0<\/span><\/p>\n

There are multiple aspects that must be considered when handling this type of scenario. One obvious reason for this is that nonprofits often work with beneficiaries who have a higher risk for contracting the coronavirus themselves. Such individuals could be more vulnerable to disease, and less likely to seek treatment due to lack of health insurance, and\/or poverty. Additionally, many organizations rely on public events for the majority of their fundraising. Although it may be necessary for public health, canceling these events can be costly, especially for nonprofits operating with limited financial resources. As a result, risk management is essential for nonprofits in this environment.\u00a0<\/span><\/p>\n

Part of understanding what the risks are involved is also understanding how they can be navigated, or even avoided. BoardSource recommends that nonprofit leadership ask themselves the following <\/span>questions<\/span><\/a> as they deal with this crisis:<\/span>
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