April 17, 2003 | Read Time: 2 minutes
Enlightened Risk Taking: a Guide to Strategic Risk Management for Nonprofits
by George L. Head and Melanie L. Herman
For a charity to maintain a positive image, raise money, and carry out its mission, the organization must prevent accidental losses and seize unexpected opportunities for gain, write George L. Head, special adviser, and Melanie L. Herman, executive director of the Nonprofit Risk Management Center, in Washington. This book focuses on potential windfalls—such as receiving a large donation out of the blue or attracting more people to a fund-raising function than anticipated—and potential crises, including the resignation of key employees, or even injuries or natural disasters during a fund-raising event.
Mr. Head and Ms. Herman suggest that nonprofit directors brainstorm about the problems their organizations could encounter and determine their likelihood and the magnitude of their impact. The authors recommend ways to reduce potential trouble, such as training staff members on safety procedures and emergency-evacuation plans and purchasing liability insurance. They also explain that charities must take special care when working with “vulnerable clients”—such as homeless people, victims of abuse, and disabled people—who might pose special challenges. For example, organizations may need to monitor people overcoming substance abuse to make sure they don’t hurt themselves or others.
Mr. Head and Ms. Herman give advice about how to be on the lookout for and respond to unexpected good news as well. For example, they recommend that charities always be prepared to tell potential donors how they could use an unexpected gift.
A companion workbook helps charities develop plans to respond to both fortunate and unfortunate surprises.
Publisher: Nonprofit Risk Management Center, 1001 Connecticut Avenue, N.W., Suite 410, Washington, D.C. 20036; (202) 785-3891; fax (202) 296-0349; info@nonprofitrisk.org; http://www.nonprofitrisk.org; 112 pages; $25; $15 for the companion workbook; I.S.B.N. 1-893210-09-X.
