Preparing the Nonprofit for the Unexpected Crisis
By: Eugene Fram Free Digital Image
Nonprofit boards and management, large and small, can suddenly be subjected to the trauma of an event that will shake the organization to its roots! While I am sure that larger nonprofits like the Red Cross have crisis management plans in place. I have yet to encounter a mature mid-sized nonprofit that has even considered anything beyond a temporary replacement for the executive director should he/she is incapacitated.
Yet it’s essential that every board chair know what to do if the executive director calls at 3AM to report that the nonprofit facility is on fire! With about 16% of all fraud losses emanating from nonprofits, how should the board chair respond when a new auditing firm reports that the executive director has been using thousands of agency dollars for personal expense?
In either of these instances, the board chair and members must be prepared to step into leadership positions that are frequently out of their comfort zones. A plan to deal with a crisis of any sort should be in position and reviewed by board and management on an annual basis. Here are some suggested topics that need annual updating: (more…)