Do you know what your grantees are doing about risk management?
Nonprofits need risk management.
Funders need to help.
You want to maximize the impact of your funding dollars.
You want to fund effective, resilient nonprofits.
You don’t want to fund failure – particularly high-profile failure that could have been easily prevented.
Whatever type of funder you are, grantee risk management matters. Private foundations must assure their boards that funds are used effectively and minimize the chance of wrongdoing or unforced error by grantees. Community foundations face further scrutiny, with potential public and donor oversight in investment decisions. Corporate Social Responsibility (CSR) funders and corporate foundations face even more levels of second-guessing — from shareholders, customers, watchdog groups, and others.
Nonprofit support organizations and commentators say nonprofits need to adopt risk management. But if funders don’t make grantee risk management a priority, most nonprofits won’t, either. They face chronic funding challenges, and demand for services routinely outstrips supply. They resist spending money on themselves when the communities they serve are under stress. And often formal risk management is a foreign concept to nonprofit staff. As a result, funders play a crucial role in building nonprofit risk management capacity. In the free report available below, we explain how to begin.