What are the most common risks facing nonprofits?
The frequency of a particular risk will depend on what activities your nonprofit is engaged in. Youth-serving organizations and those serving vulnerable persons are always concerned about the safety of their clients in the hands of volunteers or staff who provide services. Yet, the most common risk for those organizations may be related to the fact that the clients are being transported every day in vans, exposing them and the driver to a possible motor vehicle accident. A serious risk that every nonprofit faces is the risk that its reputation or good will in the community could be eroded by any number of circumstances, from a surly receptionist to financial improprieties. Each nonprofit needs to conduct an assessment of its activities to determine what its own most common risks may be. Statistically, if your nonprofit has any employees, it is probable that at some point the organization will be faced with an employment-related claim. Common claims in the property and casualty area inc
