The Fundraising Responsibility of the Fundraising Needed Has Already Been Raised

Vol. 21, No. 2, Summer 2012

… find the answer here

2012 Risk Management Webinars: Affordable and Convenient The First Wednesdays webinar series features twelve, 60-minute webinars on topical risk issues. ■■ July 11: Reporting Success: What’s the Risk? ■■ August 1: Protecting THE Vulnerable Populations ■■ September 5: Human FUNDRAISING Behavior and Risk Management ■■ October 3: Managing ISSUE Special Event Risks ■■ November 7: Crisis Management and Crisis Communications ■■ December 5: Calibrating Top 10 Fundraising Risks Your Nonprofit’s Risk Appetite for Nonprofits Each “live” program is packed by Melanie Lockwood Herman with practical information. All The words “fundraising” and “risk relying on donated dollars for mission Center webinars are recorded and management” are rarely used in the fulfillment. Read on to learn about archived so you can watch missed same sentence. One reason the topic the “top ten” fundraising risks facing programs at your convenience. of “fundraising risk” is infrequently mission-focused organizations Visit www.nonprofitrisk.org discussed by nonprofit decision- and strategies for unearthing and and choose the “Webinars” makers may be because responsibility managing the risks in your nonprofit. tab to learn more. for “fundraising” is often assigned to #10 - Ignoring Donor Wishes the development team, while “risk When your nonprofit receives a management” is led by the finance generous donation, it may feel like department or client services team. your “wish” has been granted. But has Yet there are risks associated with fundraising that deserve the continued on page 2 attention of leaders of any organization

A publication of the Nonprofit Risk Management Center ©2012 Nonprofit Risk Management Center 15 N. King Street, Suite 203 • Leesburg, VA 20176 • Phone: (202) 785-3891 • Fax: (703) 443-1990 • www.nonprofitrisk.org 2 ❙ Risk Management Essentials • Summer 2012 Top 10 Fundraising Risks for Nonprofits continued from page 1

the donor’s wish been considered with #8 - Crossing the Urgent/ respect to the use of those funds? Desperate Line in the Sand Care must be taken to understand Several years ago I received a and adhere to a donor’s request fundraising letter from a local arts regarding any restricted funding. Many organization pleading with me to Vol. 21 • No. 2 • Spring/Summer 2012 nonprofits have found out the hard “send money.” A close friend of mine Published three times annually by the was a volunteer for the organization Nonprofit Risk Management Center way that ignoring a donor’s specific 15 N. King Street, Suite 203 and I had previously donated to requests for the use of a gift puts the Leesburg, VA 20176 the group. The introduction to the Phone: (202) 785-3891 organization at risk of not only donor Fax: (703) 443-1990 appeal explained that the nonprofit Web site: www.nonprofitrisk.org. wrath but also litigation. Nonprofit had fallen on hard times, and I was leaders are wise to manage this risk by initially sympathetic. Unfortunately, taking a close look at instructions or the appeal “crossed the line” when its requests that accompany a donation. author explained the real motivation …find the answer here Questions to ask include: for the request. She wrote: “Please send Staff Directory ❏❏ Is the donor’s request for the a donation now so that I will be able (All staff can be reached at 202.785.3891) to keep my job!” Conveying the urgent use of her donation reasonable Melanie Lockwood Herman need for dollars to support your cause ■ Executive Director given our plans and resources? [email protected] may be effective. Appearing desperate ❏❏ Are we in position to fully Chris Croll will only alienate past and prospective ■ Director of Marketing and Communications comply with the request? [email protected] donors. Avoid the temptation to interject desperation into your appeals. Sue Weir Jones ❏❏ How will we demonstrate to the ■ Office Manager [email protected] donor that the conditions of the #7 - Mistaken Identity gift have been met? Over the years I’ve received several 2012 Board of Directors calls from leaders facing a barrage President Gretchen B. Kriebel ❏❏ Who in the organization is Michael A. Schraer CFA Institute of inquiries in the wake of a scandal Chubb & Son Charlottesville, VA responsible for tracking the involving a similarly named nonprofit. Treasurer David S. Kyllo use of the gift and notifying Lisa Prinz Riverport Insurance In what must feel like the ultimate Harleysville Company the donor? Insurance Minneapolis, MN “bum deal,” every nonprofit is at risk Harleysville, PA of donors assuming that the tarnished John B. Pearson #9 - Failing to Comply with Secretary Harpswell, ME reputation of a similarly named Carolyn Hayes-Gulston Charitable Registration Laws National Multiple Bill Tapp charity could negatively impact your Sclerosis Society College of Direct Thirty-nine states and the District New York, NY Support of Columbia require charities, unless good reputation. To manage this risk, Knoxville, TN consider drafting a statement about Peter Andrew exempt or excluded, to register before Council Services Sean Sweeney your nonprofit that can be finalized and Plus, Inc. Philadelphia asking residents of their jurisdictions Albany, NY Insurance Companies published should you ever face a case Bala Cynwyd, PA for contributions. The requirement Kim Y. St. Bernard of mistaken identity. The statement Girl Scouts of the USA Jeffrey D. Weslow applies not only to the home state of New York, NY Housing Authority might begin with: “The Board of ABC Insurance Group the charity, but also to any other such Cheshire, CT nonprofit was disheartened to learn of jurisdiction in which the charity is the difficulty facing XYZ nonprofit, also seeking contributions. To learn more in New Town, USA. Despite similarities about this risk and how to manage in the names of the two organizations, it, see the article on “Charitable they are unrelated. ABC nonprofit Registration” appearing on page 5 was founded by Ethical Edna in 1950. of this issue of Risk Management The mission of ABC nonprofit is to… Essentials. We welcome the public’s support as continued on next page Risk Management Essentials • Summer 2012 ❙ 3 Top 10 Fundraising Risks for Nonprofits continued from page 2 well as questions about our structure, # - 4 Lack of Transparency leadership, services, and funding. Please Today’s donors are savvy, connected contact Chris Communications at ....” and curious. At a minimum, they want to know: To manage the risk that #6 - Lack of Clarity Many fundraising campaigns involve ❏❏ Who leads your nonprofit; donors will believe you are two or more partner organizations. ❏❏ How contributed funds Raising money “together” can be an are spent; and hiding rather than sharing, effective strategy as long as all of the ❏❏ What impact the nonprofit is ask your donors what parties participating in the campaign having in the areas where it take time to clarify their respective roles works and serves. they would like to know and responsibilities. A “memorandum “ of understanding” is a useful tool for Transparency and compliance about your organization are two different concepts. Meeting clarifying not only who does what but and make that information who will benefit in which ways after the minimum requirements imposed by campaign. Possible topics to include in federal and state regulatory agencies readily available. such a document include: is compliance. Transparency is a choice that leaders of a nonprofit ❏❏ Effective date make. To manage the risk that ❏❏ Limitations and responsibilities donors will believe you are hiding ❏❏ Project timeline and key rather than sharing, ask your donors due dates what they would like to know about your organization and make that ❏❏ Accounting of expenses information readily available. and receipts ” ❏❏ Ethical standards #3 - Sweeping Mistakes under the Rug The ability to ask others to donate ❏ ❏ Cancellation to a cause requires a sunny outlook #5 - Unintentional Donor Disrespect on an organization’s ability to make While few nonprofit leaders would a difference. That sunny outlook—a knowingly disrespect a donor, a common quality among professional donor may feel disrespected by your and volunteer fundraisers—can practices and tactics. For example, if sometimes cause dedicated leaders you call prospective donors early in to look the other way when mistakes the morning, late at night, during the are made or treat these issues as dinner hour or repeatedly, you run the “one off” complaints. Research on risk of inadvertently disrespecting your mistakes in organizational life by donor. To manage the risk of donor Harvard Business School professor disrespect, visit the Association of Amy C. Edmondson suggests that Fundraising Professionals website and many leaders treat mistakes too read AFP’s “Donor Bill of Rights.” The simplistically, and fail to take the time stated purpose of the document is: “To to understand “what” went wrong ensure that philanthropy merits the and “why.” When a supporter calls to respect and trust of the general public, tell you they received a solicitation in and that donors and prospective error, an inaccurate receipt for their donors can have full confidence in the contribution, or to complain about nonprofit organizations and causes the tone or mixed messages in your they are asked to support.” campaign, vow to figure out what continued on page 4 4 ❙ Risk Management Essentials • Summer 2012 Top 10 Fundraising Risks for Nonprofits continued from page 3

happened and why. Take the time to campaign to close the deficit. Risk research the issue in question, gather management strategies to avoid this a diverse group to review the matter, outcome include: and identify practical steps to avoid a ❏❏ Tapping diverse points of view similar misstep in the future. Close the loop with the person who identified in the planning process – If the mistake and express thanks for everyone at the table is convinced While expertise making bringing the matter to light. Mistakes the campaign “can’t fail,” you that are ignored or swept under the probably don’t have the diverse the “ask” may be found in rug are downside risks waiting to perspectives needed to ensure success. a nonprofit’s development happen… again. ❏❏ Reaching out to prospective donors #2 - Isolating Fundraising before you begin – Capital department, it’s vital that Responsibility (or Keeping campaigns often begin after a others at the organization Colleagues in the Dark) “ Fundraising in a nonprofit is the certain percentage of funding are aware of the fundraising responsibility of the fundraising needed has already been raised. staff, right? Yes… and no. While This technique can be applied to strategies and campaigns expertise making the “ask” may be other fundraising efforts as well. the nonprofit undertakes. found in a nonprofit’s development Consider reaching out to a small department, it’s vital that others at pool of prospective donors as the the organization are aware of the campaign is taking shape, to test fundraising strategies and campaigns the waters of the approach you the nonprofit undertakes. For example, are considering. a positive response to an innovative The word fundraising generally online fundraising strategy could has a positive connotation in a strain the nonprofit’s IT resources. ” Unless the IT department is aware of nonprofit. The team responsible for the campaign in advance, they may be development efforts is often comprised powerless to prevent the crippling of of optimists who are hopeful about IT infrastructure when thousands of their ability to persuade others to donors log on to learn more or donate. support the compelling mission of the organization. Yet risk is a fact of #1 - Missing the Mark all facets of nonprofit life, including The most familiar fundraising risk in fundraising. By taking a closer look the nonprofit sector is falling shy of the target for fundraising results. Causes at common fundraising risks and include: your own approach to fundraising, ✓ Unrealistic expectations; you will be in a stronger position to anticipate and survive the inevitable ✓ Taking long-term donors uncertainty that is a backdrop for your for granted; and fundraising efforts. ✓ Failing to make a compelling case. Melanie Lockwood Herman is the Executive The consequences of missing the Director of the Nonprofit Risk Management Center. Melanie welcomes your questions mark range from the need to cancel about any of the topics in this article. She or trim planned programs or services can be reached at [email protected] to the need to undertake a follow-on or (202) 785-3891. Risk Management Essentials • Summer 2012 ❙ 5

Charitable Registration: Resolve to Comply

By Don Kramer Charities soliciting charitable Once registered, the charity must Thirty-nine states and contributions to further their mission be sure to renew as required each year can be tripped up significantly if they or face additional risks of fines and the District of Columbia don’t pay attention to the requirements penalties. One state recently sought require charities, unless for charitable solicitation registration. to impose a fine of $10,000 on an Thirty-nine states and the District organization that had raised $85 from a exempt or excluded, of Columbia require charities, unless donor within the state during the period exempt or excluded, to register before it was out of compliance because its to register before asking residents of their jurisdictions “ renewal was late. asking residents of for contributions. The requirement In meeting the registration applies not only to the home state of requirements charities are required their jurisdictions for the charity, but also to any other such to submit copies of their Form 990 or jurisdiction in which the charity is Form 990-EZ federal tax information contributions. The seeking contributions. return (if filed by the organization). requirement applies not State regulators have the power The regulators normally look closely to to impose fines of many thousands see whether fundraising costs appear only to the home state of of dollars and even issue injunctions to be recorded properly, and check against solicitation if the organization is whether those listed as providing the charity, but also to not properly registered. “professional fundraising services” on any other such jurisdiction Charities that solicit funds on their Schedule G are properly registered own websites with a “donate now” type in the state as fundraising counsel or in which the charity is button often wonder whether they have professional solicitors. Registrations can to register in all of the jurisdictions seeking contributions. be delayed or denied if not all of the because their website is accessible from listed parties are themselves registered anywhere in the world. The National where required. Intentional filing of Association of State Charity Officials false or misleading tax returns can be (www.nasconet.org) has issued the prosecuted. “Charleston Principles” under which Because most states are significantly they recommend that charities not be strapped for funds these days, the required to register merely for hosting imposition of fines for failure to comply a “passive” website. By that they mean ” with the rules can be a relatively easy one where the charity does not drive money-maker, especially where the traffic from the other state to the organization has no real defense. website by direct mail, telephone, emails, Charities that depend on contributions advertising, or other targeted activity. will be well served by being sure The issue arises, however, when the charity receives a contribution from the that they comply with any applicable other state, thanks the donor, and then charitable solicitation registration rules. (almost inevitably) asks for more. At that point, there is a direct solicitation Don Kramer is a partner at Montgomery, McCracken, Walker & Rhoads, LLP in in the other state and the registration Philadelphia and the Editor of Nonprofit requirement will apply. Issues® (www.nonprofitissues.com). 6 ❙ Risk Management Essentials • Summer 2012 Marcin Wichary. Some rights reserved. Wichary. Marcin © Rock Stars and Risk Managers 2012 SUMMIT Will Convene in Chicago

SUMMIT Keynotes The conference keynote sessions at the 2012 SUMMIT will debunk conventional thinking about risk and risk management. This year we’re pleased to feature two mavericks with very different backgrounds and points of view. The opening keynote by Dr. Jeff Salz will help you see “adventure” in a new light, while Mark Addleson will challenge how you think about managing people and risk in today’s workplace.

Monday, August 27 corners of the earth but his secrets to - Opening rekindling the spirit of discovery and Plenary Session: wonder in even the most mundane “Shake It Up!” corners of your life. You don’t have to Tuesday, August 28 climb mountains in – Plenary Session: Patagonia, sleep in a “Come Together” – NY train station or apprentice with a Collaboration is the Peruvian shaman—all things Jeff Salz, New Black - Doctor of Anthropology, has done— The nonprofit to find adventure in your life. In this sector attracts insightful and motivating keynote extraordinarily creative leaders to session, this “real life Indiana Jones” support a wide range of causes. Yet will share with us not only amazing many nonprofit missions languish stories about his adventures to the under traditional, top-down continued on next page Risk Management Essentials • Summer 2012 ❙ 7 Rock Stars and Risk Managers continued from page 6 management structures that are organizations attend the SUMMIT, learned in graduate schools or in the offering proof that the link halls of for-profits and nonprofits between financial management and FOR AFFILIATES around the world. In his new book, risk management is indisputable. ONLY – Sunday, “Beyond Management: Taking The workshops in this year’s brand- August 26, 2-5 pm Charge at Work,” author, professor new finance track are designed “Like a Bridge Over and management consultant Mark with the experienced CFO in mind. Troubled Waters” — Addleson explores the failure of ❏❏ Insurance - The conference Leading in Times of Crisis traditional management practices workshops on insurance topics Featuring: in 21st Century workplaces. During reflect the fact that commercial a provocative keynote at this year’s Melanie Lockwood Herman, insurance remains a popular risk Nonprofit Risk Management SUMMIT, Professor Addleson will financing technique for nonprofits. Center, Leesburg, VA and share his thoughts on the role of ❏❏ Managing Human Resource Risk collaboration in a nonprofit workplace, Chris Croll, Croll Ventures and - The 2012 SUMMIT features a how to overcome common roadblocks the Nonprofit Risk Management brand-new line-up of fast-paced to achieving real collaboration, and Center, Leesburg, VA sessions on human resource the best ways to “break the mold” of risk. The sessions in the Human *AFFILIATE EXCLUSIVE* - The revered management systems with Resources track explore the Center is pleased to offer a grace and savoir faire. Learn how to riskiest phase of the employment complimentary, pre-conference empower your paid and volunteer relationship (“Lost That Lovin’ workshop exclusively for our knowledge workers to make collective AFFILIATE members. The Feeling”) and offer an opportunity decisions that bolster your mission and program will feature practical to learn from seasoned HR pros propel your organization forward. crisis management guidance as (“Ask the HR Experts”). well as hands-on media relations Conference Tracks ❏❏ Risk Management Essentials - training. If you work for one of our The workshops at this year’s conference The Risk Management Essentials AFFILIATES, or if your nonprofit are organized into six thematic tracks. track at the 2012 SUMMIT offers employer is a member of one of The tracks for 2012 are: thought-provoking leader-led and our AFFILIATES, you are eligible to participate. Space is limited ❏❏ Ask the Experts! - The Center is panel sessions on topics ranging for this special program. Want to offering a brand new track at the from Leadership & Risk (“Leader attend? 2012 SUMMIT: a series of sessions of the Band”) to Enterprise Risk featuring panels of technical Management (“Taking Care of Become a Center AFFILIATE experts. Each expert panel features Business”), and Developing a at: www.nonprofitrisk.org/ a team of “gurus” bringing their Risk Aware Culture (“Livin’ on affiliates/default.asp. relevant war stories and life-saving a Prayer”). Come prepared to ideas from years in the trenches learn from our talented faculty of nonprofit management. Each of savvy and experienced risk panel will be ready to answer your management practitioners. toughest questions within their ❏❏ Technology - Got technology? realm of expertise. The series Then you’ve got risk in never before features four not-to-be-missed seen ways, shapes and forms. Across sessions: Ask the CPAs, Ask the the country nonprofit leaders are Lawyers, Ask the HR Experts and trying hard to keep up with the Ask the Underwriters. tools of the digital age. First comes ❏❏ Financial Management and awareness, then comes mastery, Oversight - Each year CFOs from then comes… the unexpected. midsized and large nonprofit The workshops in this brand new continued on page 8 8 ❙ Risk Management Essentials • Summer 2012 Rock Stars and Risk Managers continued from page 7

track include sessions on cloud ❏❏ “Don’t Stop Thinking About computing risks (“Lucy in the Sky Tomorrow” — Top 10 Legal with Diamonds”), social media Risks That Keep Nonprofit risk (“With A Little Help From My Leaders Awake at Night - This Friends”) and IT governance workshop will help you sleep easy (“Mr. Roboto”). by outlining the “top 10” legal risks Conference Workshops for 2012. Some may be familiar and others will be surprising. You won’t More than 20 workshops will be want to miss this opportunity to featured at this year’s SUMMIT. learn about areas of danger as well For complete program details, visit: as practical steps and approaches www.nonprofitrisk.org/summit/ to reducing worry and taking program_2012.asp. Here’s a sampling action in the face of legal risk. of the educational program for the ❏ conference: ❏ “It’s All About the Benjamins” — Advanced Accounting Issues for ❏ ❏ “Call Me” — Personal Devices CFOs - This workshop will explore at Work...Smart Savings or transactions that are unique to Unacceptable Risk? - A growing nonprofit organizations, (e.g., number of nonprofit employees tax issues, complex contribution are asking to use personal agreements, accounting for devices for business purposes, revenue derived from endowments, including devices containing accounting for split interest apps, music collections, photos agreements, accounting treatments and more. This workshop will for donated goods and services) explore the downside risks and and include an update on recent upside rewards in the “Bring or pending FASB developments Your Own Device” movement. relevant to nonprofits. The session will offer practical ❏❏ “Leader of the Band” — advice on managing the risks of Influencing Risk Management dual-use devices in a nonprofit Culture - Setting the right tone workplace, including technological for your organization comes from safeguards, organizational policy the top down. This workshop and employee education. will explore the essential role of ❏❏ “Cats in the Cradle” — Effective leadership in developing a healthy, Youth Protection Strategies - The risk-aware culture. Plan to attend youth involved in many nonprofit this workshop to learn about: programs can be exposed to ✓ Setting the tone: Articulating a mistreatment from peers as well solid risk management vision as adults. Is your organization ✓ Socializing your plans: hard wired to protect youth, Understanding—and staff and the organization? This overcoming—risk workshop will offer a thought- management resistance provoking look at best in class ✓ Maintaining the culture: youth protection practices, as well Practical strategies for as some commonly overlooked continuing good risk danger signs. management habits continued on next page Risk Management Essentials • Summer 2012 ❙ 9

Visit the SUMMIT webpage for complete ❏❏ “Shiny Happy People” — Ask The ❏❏ “Taking Care of Business” — information on the HR Experts - This session will Enterprise Risk Management educational programs explore top human resource risks - The intent of enterprise risk that will be offered this facing nonprofit organizations management (ERM) is to enable an August 26-28 in Chicago. and will provide an opportunity organization to advance its mission to glean valuable insights from a in an environment of continuing panel of human capital experts. uncertainty. Over the past decade ERM has been gaining traction ❏❏ “Take The Money and Run” across the corporate, government — Ask the CPAs - The role of and nonprofit sectors. But how the CFO continues to evolve as can you tell when your nonprofit nonprofit boards embrace their is ready for ERM? How do you responsibility for fiscal oversight get started? What are standard and increasingly insist on the use metrics for measuring success? of financial dashboards and other What standards, frameworks and tools for evaluating and monitoring tools can help? Don’t miss out a nonprofit’s fiscal health. This on this opportunity to get advice session will begin with a discussion from a panel of executives who of tools and strategies our panelists are implementing ERM in their have found helpful and continue respective nonprofit organizations. with questions from the audience Hear firsthand from pioneering about accounting topics, financial ERM leaders and about what ERM management and fiscal oversight. can and can’t do. 10 ❙ Risk Management Essentials • Summer 2012 Professional Development and Training Calendar The Nonprofit Risk Management Center’s in-person and virtual training programs offer great content, access to experts, and networking opportunities.

WEBINARS DELIVER HIGH-QUALITY, MONTHLY TRAINING TO YOUR DESKTOP An internet and telephone connection is all you need to receive live, expert instruction along with handout materials. Can’t attend one of the programs of interest on the date it will be presented live? All webinars are recorded and archived so you can watch, listen and learn when it suits you to do so. When you sign up and purchase a program you will receive a confirmation email with a link to the webpage featuring downloadable handouts. The archived recording of the program will be posted on the same webpage as soon as the live program has concluded.

First Wednesdays Schedule First Wednesdays in 2012 – JULY 11: Reporting Success: A Webinar Series at 2 p.m. Eastern What’s the Risk? Join the experts at the Nonprofit Risk Management Center for a series of practical, to Savvy donors want to know more the point programs on risk management in the nonprofit world. The brand-new series than how much of their dollars went features twelve, 60-minute programs on topical risk issues. Each program features to “programs” versus “overhead” or relevant handout materials, an expert presenter (or two!) and practical insights and “fundraising” expense: they want to know tips on the webinar topic. what progress your nonprofit is making This series of twelve programs is ideal for in-service training, risk-management skills to advance its ambitious mission. Failing polishing and orienting staff, managers and board members to critical aspects of to track and demonstrate impact puts understanding and managing risk in your nonprofit organization. your mission and long-term success at REGISTER risk. Success in today’s nonprofit world is ■■ Each webinar program is $59. more than how many people you served, ■■ Register for all 12 webinars for $459, a savings of $249 off the cost of the how many events you sponsored, or how programs if purchased separately! many “friends” you have at a popular Risk Management Essentials • Summer 2012 ❙ 11 social media site. Attend this webinar for your mission or cause, or both, an to learn how to appreciate and manage assortment of risks will be featured How We Can Help stakeholder expectations and how to tell along with the plentiful buffet and You the Year your “success story” in a manner that is enthusiastic crowd. Attend this webinar Through transparent, accurate and compelling. to learn “what’s new” in special events The Nonprofit Risk Management risk management. Find out what you Center, established in 1990, AUGUST 1: Protecting can do today to better appreciate the provides assistance and resources Vulnerable Populations for community-serving nonprofit risks associated with events, and what organizations. As a nonprofit, the Attend this webinar to learn about you can and must do if something goes Center is uniquely positioned to both best practice strategies for protecting wrong when you set the stage, unroll understand and respond to questions members of vulnerable populations with practical, affordable suggestions the red carpet or simply promise an for managing risks that threaten a from harm caused by criminal acts, “unforgettable” event. nonprofit’s ability to accomplish its negligence and accidents. In addition to mission. exploring best practice approaches you’ll NOVEMBER 7: Crisis Our mission is to help nonprofits cope learn about critical, evolving challenges Management and Crisis with uncertainty. facing leaders of nonprofits that serve Communications ■■ We provide free technical A crisis is any event that threatens assistance by telephone, vulnerable clients. If your nonprofit (202) 785-3891, or e-mail, serves children, the elderly or persons your nonprofit’s survival or ability to [email protected], to our with disabilities, you won’t want to miss advance its mission. A crisis demands Affiliates. ■■ We produce affordable, this fast-paced program. your immediate focus. This webinar will easy-to-read publications. explore the critical steps and planning (Some are free!) SEPTEMBER 5: Human Behavior required before a crisis hits. Find out what ■■ We design and deliver and Risk Management you should be doing today to ensure that workshops at events and conferences sponsored by When a nonprofit adopts a risk your nonprofit will be in the strongest nonprofit organizations, management framework, deputizes possible position to survive a crisis that is umbrella groups and members of a risk management difficult, if not impossible, to imagine. associations, and insurance committee, and approves a set of slick providers. ■ policies that have been blessed by legal DECEMBER 5: Calibrating Your ■ We offer helpful online tools, including My Risk Management counsel, one would expect that the Nonprofit’s Risk Appetite: Candid Policies, an easy to use, Conversations at the Board Table organization’s risk management journey program that helps you develop Many nonprofit leaders report a sense of custom policies in various will be relatively smooth and uneventful. being either “risk takers” or “risk averse.” areas, including governance, But not if there are human beings in human resources, technology, Yet it is unusual for the entire leadership the mix! This webinar will explore how volunteer management, facility team to share the same level of comfort safety, and more. Visit www. somewhat predictable human behavior with highly uncertain outcomes. This myriskmanagementpolicies. can impede the realization of rational risk org to learn more or purchase a webinar will explore the concept of “risk management approaches and policies. license allowing unlimited use appetite” in a nonprofit organization. for $179. Learn about the importance of ownership Topics to be discussed include: how to ■■ We offer competitively priced behavior in employees, how to inspire consulting services, including engage the board in a conversation about truth-telling, and what steps are key to risk assessments. Visit the the nonprofit’s appetite for uncertainty, Consulting tab at www. jump starting true collaboration in your . and how to ensure that decision-making nonprofitrisk.org risk management program. The Nonprofit Risk Management at all levels of the organization is in sync Center is a 501(c)(3) nonprofit OCTOBER 3: Managing with the overall risk appetite defined organization. The Center does not sell Special Event Risks by the board. Find out how to have a insurance or endorse organizations that do. Special events continue to be popular conversation about taking bold risks with in the nonprofit sector. Whether your a board that clings to the status quo, or upcoming event is designed as a how to raise risk issues gracefully in an fundraiser, as a way to raise awareness environment where “anything goes!” 12 ❙ Risk Management Essentials • Summer 2012

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Philadelphia Insurance Companies is the marketing name for the insurance company subsidiaries of the Philadelphia Consolidated Holding Corp., a Member of the Tokio Marine Group. Coverage(s) described may not be available in all states and are subject to Underwriting and certain coverage(s) may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. | © 2010-2011 Philadelphia Insurance Companies, All Rights Reserved. | *Japanese GAAP basis. As of the year ended March 31, 2011. Exchange rate is as of March 31, 2011 $1= 83.2 Japanese Yen.

NonProfit Risk_2011.indd 1 7/28/2011 11:00:52 AM Inclusion in the Marketplace does not constitute an endorsement by the Nonprofit Risk Management Center. To inquire about space availability, [email protected] . Risk Management Essentials • Summer 2012 ❙ 15

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… find the answer here Risk Management ESSENTIALS Tips,T Knowledge and Toolss Please route to: for forNonprofit Nonprofit OrganizationsOrganizations ■ Executive Director ■ Director of Volunteers ■ Risk Manager Inside ■ Legal Counsel This Issue ■ Human Resources Top 10 Fundraising Risks Facing Nonprofits...... 1 ■ Finance/Administration Charitable Registration: Resolve to Comply...... 5 Rock Stars and Risk Managers...... 8 Affiliate Members: ■ Alabama Association of Nonprofits Professional Development and Training Calendar...... 10 ■ California Association of Nonprofits The Risk Management Marketplace...... 12 ■ Career Opportunities Development, Inc. Products/Publications from the Nonprofit Risk Management Center...... 15 ■ Community Action Partnership ■ Council Services Plus, Inc. ■ Girl Scouts of Greater Atlanta, Inc. ■ Harleysville Insurance ■ Hays Affinity ■ Hillel: The Foundation for Jewish Campus Life ■ HMS School for Children with Cerebral Palsy ■ Housing Authority Insurance Group, Inc. ■ Kingsley House, Inc. ■ Maine Association of Nonprofits ■ Metropolitan Arts Partnership ■ Michigan NonprofitAssociation ■ Minnesota Council of Nonprofits ■ N.C. Center for Nonprofits ■ National MS Society ■ NeighborWorks America ■ ONE - The Organization for Nonprofit Executives ■ PSA Insurance & Financial Services ■ Speech and Language Development Center ■ State Bank Financial ■ Sunshine ■ Texas Association of Nonprofit Organizations ■ TransitionGuides, Inc. ■ Volunteer Loudoun ■ YMCA of the USA