What You Should Know About Nonprofit Risk Management

Nonprofit risk management presents unique challenges.

 

Nonprofits can quickly become so dedicated to advancing the mission that they overlook risks that could eventually compromise their hard work and the entire organization. A successful nonprofit risk management strategy is essential in addressing finances, potential injuries, and data security. Without one, you could be doing a disservice to your organization. Here’s what you should consider when developing a nonprofit risk management plan.

 

  • Lack of funding

Most nonprofits operate on tight budgets and need to keep a close eye on where they spend their money. To stay on top of your organization, create a budget that factors in overhead costs such as rent and utilities, plus any salaries or stipends you pay employees. Fundraising is a never-ending job, which is why it’s worth considering inexpensive ways to promote your nonprofit, as well as holding events to showcase your nonprofit.

 

  • Onsite injuries

Believe it or not, but nonprofits can still be held liable if visitors, employees, or volunteers suffer any injury onsite. An injured person could end up suing your nonprofit, too. Make sure you have all your bases covered to prevent injuries (such as a safety policy) in addition to reliable insurance coverage.

 

  • Donor data breaches

Your donors are your lifeblood. One mistake is all it takes for donors to withdraw their ongoing support, which is why data breaches that expose their personal and financial details can be a disaster. If your nonprofit accepts donations online, look for better ways to improve cybersecurity. Take out a cyber liability insurance policy that you can fall back on in case the worst happens.

 

Don’t risk your nonprofit by ignoring the importance of risk management. Contact the experts at HUB International Insurance Services in Colorado at 719-546-6827. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.