Estimated Reading Time: 3 minutes
Executive Director
After record rainfall in April and May, the front yards, gardens and farms look especially lush in the area of Virginia where I live. Everything is thriving… including the weeds. Extracting the bumper crop of weeds from my flower beds is requiring a bit more time than I had budgeted for the maintenance of my garden. While battling the weeds this past weekend I found myself reflecting on the “weeds” that crop up in nonprofit organizations. One example of an organizational “weed” is an out of date policy.
After a recent presentation in Texas an audience member approached me to discuss her nonprofit’s employment policies. She indicated that over time the nonprofit’s employment policies had grown unwieldy. We discussed the fact that many organizations begin with a simple personnel manual that grows in length and complexity with the addition of new policies. An attendance policy is added to address the habitual tardiness by employees in one department. A social media policy is adopted after an online posting by an employee causes embarrassment. The resulting “manual” is a collection of mismatched policies that are far from cohesive.
Allowing the unfettered growth of policies in an organization is a bit like allowing the weeds to overcome your rose garden. Over time it will be hard to see and enjoy the colorful, fragrant blooms. If weeding your nonprofit’s collection of policies is overdue, consider the following tips:
Taking time to “weed” organizational policies is an essential part of effective risk management. Out of date policies intended to reduce the likelihood of harm may increase your exposure to loss. Unwieldy policies impair agility and may limit opportunities to innovate and seize opportunities. Organizational circumstances, strategies and policy needs change over time. Periodic pruning is less costly and ultimately more effective than waiting until the garden is completely overgrown.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your ideas about any risk management topic, feedback on this article and questions about the Center’s resources at Melanie@nonprofitrisk.org or 703.777.3504. The Center provides risk management tools and resources at www.https://nonprofitrisk.org/ and offers consulting assistance to organizations unwilling to leave their missions to chance.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of NRMC to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of NRMC. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The NRMC team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!