A nonprofit according to the IRS is expected to raise funds to lower the costs of providing their services.  More and more funders and government are requiring a match by the nonprofit to programs the funder supports.

Track the use of donated space and know the market rate for similar space.  Staff out-posted to another location assign a value to that space.

Provided free advertising, assign a value to it and document it.

Provided goods, place a value on them and document it

Volunteer help, use minimum wage and keep track of the hours.  If the individual is doing a credentialed required service use the Department of Labor salary schedule.

Keep track of those travel and transportation costs employees and volunteers provide to the organization.

You will find it all adds up to thousands of dollars.

An Association is usually incorporated as a 501 (c) 6 organization. It works on behalf of its members. The strength of an Association is based on its membership. The larger the membership, the more success the Association will have in producing greater results. A nonprofit or individual should pay a membership to join an Association if there are clear and measurable benefits to being a member.

The most simple measure is, “Will my organization save money or obtain additional funds by the actions of the Association?” Group purchasing is the quickest and easiest way to see results immediately. These actions create more funds by decreasing costs.

Property insurance, health insurance, dental insurance, visioin insurance, utilities, billing services, retirement plans, human resource services, accounting services, consulting services, development services, office supplies, security, bottled water, food, equipment, web services, information technology services, banking services, audit services, construction, and employment assistance programs are just a few examples where group purchasing can decrease costs.

The other part of an Association’s effort is lobbying and clearly educating elected officials. A key role they play is providing a clear voice on the economic impact of their member organizations and the criticial areas of concerns.

So take advantage of Associations where it makes sense. Make sure you never pay more than it costs your local, state or federal government for a service or product.

Insurance companies calculate the likelihood that an organization will file a claim.  They calculate how likely it is that an individual will file a claim. 

Federal and state authorities are responsible for certifying the safety of a bridge.  When a bridge is considered not sound, they weigh the likelihood of its failure.

The FDA calculates the acceptable risk to any individual, if the greater public would benefit over a few. 

Whether going to the beach, going boating, driving a car, traveling via a plane, taking a shower, sitting in the sun, skiing, eating foods, etc.; each action requires a level of risk.

Death and injury are never positive outcomes.  The human body is not invincible.  Even sitting still in one location and being frozen in fear of risk is unhealthy.  Each individual’s genetic make up, environmental conditions, and actions they take create the level of risk for any activity. 

So what can a person do?

Make yourself aware by being an informed consumer.

So what should an organization do?

Decide how to run the organization at a level of acceptable risks.  Plan ahead by creating a Risk Management Plan.  Having a plan lessens the likelihood that critical steps are not missed. 

Risk Management for your organization is not about predicting.  It is about having an ability to respond in an appropriate manner.  It is about appropriately training your staff on how to respond.  Your plan provides staff the base tool on which to be trained.

To the degree staff learn an organization’s risk management plan, they will learn valuable skills for helping their family members.

Risk is everywhere and should not paralyze an organization or individual. Be proactive, create your plan and review it with staff.