This guide by Access Insurance highlights the importance of risk management for charity leaders when diversifying their fundraising efforts. It covers several key risk management considerations in the context of fundraising:
Strategic and financial risks
- Evaluate risks and strategic benefits of various fundraising tactics like legacy giving, events, mailshots, SMS appeals, etc.
- Conduct risk assessments and have contingency plans in place.
Regulatory risks
- Ensure compliance with fundraising regulations, data protection laws, and safeguarding requirements.
- Provide proper training to staff and volunteers.
Reputational risks
- Develop a crisis management and communications plan to address potential reputational damage promptly.
Operational risks
- Implement proper cash handling procedures when collecting funds from the public.
- Manage cyber risks by securing systems and data.
- Have measures in place to prevent fraud.
Insurance
- Consider insurance to transfer risks associated with fundraising activities.
- Consider Trustees, Directors & Officers Insurance for financial protection against wrongful acts claims.
By proactively managing these risks, charity leaders can safeguard their organisation’s reputation, resources, and ability to carry out their mission effectively through fundraising initiatives.
