Recently, I wrote about the nonprofit crash that’s on the horizon. As I mentioned, I don’t think it’s a matter of if, but when it will happen.

One of the possibilities that could drive the nonprofit crash is a significant donor data protection issue. As you may know, Blackbaud experienced a ransomware attack by hackers, and now faces nearly a dozen class-action lawsuits. Donors were rightly angry and sued. However, donors also decided to sue nonprofits.

I described other scenarios too, but the next natural question, which readers repeatedly asked me following the publication of the “nonprofit crash” article, was “What can nonprofit leaders do to protect themselves?" Here are five essential actions you could do to protect your organization from the nonprofit crash.

First, you need to inform your board about the potential risks that exist (perhaps, during your annual meeting). Remember, your board has legal and fiduciary responsibility. Meaning it could be liable. If your data is hacked, neither you nor your board wants to receive a lawsuit.

If you don't know what the potential risks might be, or if you prefer to have a third-party expert present them, it's worth hiring a strategic nonprofit consultant to inform the board. Knowledge is power, and, from there, you could make concrete, board-led decisions to protect the organization.

The next crucial thing for your nonprofit is to make sure you have your financial reserves in order. The 2020 pandemic was a predictable event, but no one thought it could happen during their lifetimes. Well, guess what? It did and it caused chaos in the nonprofit sector.

The world of work is changing — and so are workers’ expectations. The call to leaders is clear: Adapt now or risk the organization’s future.

Adaptability is one of the keys to effective leadership. Those who adapt well know how to adjust their style when the situation calls for it. Another key is continual learning — being willing to find new ways to do things that will help you lead others and your organization while, at the same time, improve worker satisfaction and organizational outcomes.

These elements of effective leadership are especially necessary in our current work environment. As employees around the world return to offices and worksites, leaders must recognize and act upon the reality of our new world of work. Not doing so means potentially losing good workers and watching organizations fail as a result. The price of this turnover has a ripple effect on our communities and society, including economic impacts, hiring challenges, and an increased competition for quality workers.

Evidence of a workforce shift already is mounting. According to the U.S. Department of Labor, 11.5 million workers quit their jobs between April and June of 2021. People are rethinking what is important to them and, well, it’s no longer “business as usual.”

According to Shahar Erez, CEO of the freelance talent platform Stoke, “The Great Resignation is propelled by three forces: the changing generation, the economic crisis, and a realization among employees that they can have a different social contract, spending more time with family when they work remote and skip the commute.”

Child Advocates has reported a record-breaking attendance of 123 participants attended annual Trivia Night. The event generated more than $55,000 in donations to support Marion County children experiencing abuse or neglect.

The Dove Recovery House for Women in Indianapolis has announced its plans to expand into Dubois County. The organization plans to open the new Jasper location in by the end of 2022 to support efforts to treat women impacted by substance use disorder. Read

The Indiana Housing & Community Development Authority has awarded Foster Success nearly $100,000 in grant funds to help expand the nonprofit organization’s financial programs, including the relaunch of a Credit Build program for teens and young adults in foster care.

The Indianapolis Public Transportation Foundation is partnering with IndyGo to extend the Mobility Access Fund to Marion County 501(c)3 nonprofit organizations. The fund helps nonprofit organizations support clients using public transportation to assess jobs, food, healthcare and other essential services. Learn

The Standiford H. Cox Fund is distributing $190,000 in grant funds to support the preservation, operations and maintenance of 11 sites significant to Indiana’s African American history. Read https://www.insideindianabusiness.com/story/44811278/african-american-organizations-receive-grants

Marian University in Indianapolis is implementing City Connects to address K-12 student issues outside of the classroom such as housing instability, food insecurity and lack of access to healthcare. Read

CDFI Friendly Bloomington is one of three Indiana nonprofits that received a $125,000 grant from the U.S. Department of the Treasury as the organizations progress towards certification as a community development financial institution. The other two recipients were CANI’s Center for Community and Economic Development, Inc., and Union Baptist Church FCU, both in Fort Wayne. Read

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Holiday Assistance Program needs sponsors during Thanksgiving and Christmas to adopt families in need of food and gifts. Volunteers also are needed to solicit sponsors and donors to help support families during the holidays. https://caringforacauseindy.netlify.app/

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