Like any industry, the nonprofit sector faces a variety of risks on a daily basis. However, the right risk management strategies can help to reduce exposures and liabilities for these organizations. A recent report conducted by SeaChange Capital Partners and Oliver Wyman entitled “Risk Management for Nonprofits” detailed the common risks that nonprofits are exposed to and how to reduce liability. In addition to providing a comprehensive Nonprofit Insurance Program, share this information with your clients in order to mitigate loss and reduce expenses.
Many expenses for nonprofits are fixed and cannot be altered. What’s more, these costs are expected to increase in the future, costing nonprofits more money and resources. Even with the help of modern technology, fixed costs are still unwavering.
Nonprofits that require a lot of volunteers and help will almost always be reliant on some form of government sponsorship and funding. Especially as the availability of resources is fixed, these organizations often need supplemental assistance. However, it can be difficult to acquire additional funding as many resources depend on pre-approved government budgets.
Recruiting and Retention
As employees and donors are the backbone to any nonprofit, retaining these individuals is critical to the organization’s success. Whether they are picked up by a competitor or they crave advancement, there is always the risk of losing valuable employees. Therefore, employees who manage finances, accounting, back-end work, technology, and more need to be appreciated, treated fairly, and adequately compensated. Similarly, the donors that keep your purpose afloat are critical components to your clients’ success- ensure they are aware of where their money is going and are valued as contributors to the cause.
These three common risks are only a glimpse of the risks that nonprofits face. However, at Domenick & Associates, we have a unique understanding of the nonprofit sector and how to properly secure your clients’ operation. From personal and advertising protection to volunteer coverage, we offer a range of products that are necessary for their success and longevity. For more information about our products, contact our experts today at (855) 745-3636.