Recently, the NonProfit Times encouraged tax-exempt organizations to start planning for several emerging risks. These include:
More wrongful employment practice claims. Claims made by former nonprofit employees are rising. Review your employee files and employment policies for vulnerabilities and ensure that managers follow written policies to the letter.
Costlier commercial insurance policies. The “soft market” — or period when insurance coverage was easy to get and competitively priced — is nearing its end. Evaluate your current coverage, limits and deductibles and make any adjustments to your policies now.
Higher employee turnover. An improving economy means new job opportunities for nonprofit staffers. Ensure that more than one employee knows how to perform every critical task, particularly in such areas as information technology, human resources and accounting.
Problematic partnerships. Nonprofit partners and corporate sponsors can put your reputation and even financial resources at risk. Thoroughly research potential partners and ask plenty of questions about their motivations and fiscal stability before agreeing to join forces.