6 Reasons Why Your Nonprofit Needs a Business Continuity Plan

Discover six compelling reasons why your nonprofit needs a business continuity plan. From ensuring staff safety and mission continuity to protecting financial stability and reputation, a robust plan is essential for resilience. Learn how regulatory compliance, funding requirements, and peace of mind contribute to your organization's success. Explore the benefits and get started on safeguarding your nonprofit today.

Ted Bilich

Nonprofit organizations face many risks that can disrupt their operations, ranging from natural disasters and cyber-attacks to busted water pipes and natural gas leaks. To ensure an organization can continue to operate and serve its community despite these disruptions, a business continuity plan is essential. Here are six reasons why a nonprofit needs a business continuity plan:

Staff Safety and Confidence

A clear and practiced business continuity plan ensures that staff know what to do in the event of a disruption, contributing to their safety and well-being. It also builds confidence among staff and volunteers in the organization's leadership and its commitment to their safety and the continuity of their work.

Key question: Do you want to look like a deer in the headlights when disaster strikes?

Mission Continuity

Nonprofits are mission-driven organizations that provide critical services to communities, such as food banks, shelters, education, and health services. A robust business continuity plan ensures that these services can continue, even in the face of unexpected events, thus safeguarding the community's well-being and the organization's mission.

Key question: Who gets to be the one who tells beneficiaries that help is not available?

Financial Stability

Disruptions can lead to financial losses, whether through direct costs related to the disruption or through lost revenue. A business continuity plan helps minimize these financial impacts by preparing the organization to manage disruptions efficiently, keeping costs down and helping to ensure the organization's long-term financial health.

Key question: What would be the financial impact for your nonprofit of shutting down for three weeks?

Reputational Protection

A well-executed business continuity plan demonstrates to donors, beneficiaries, and the public that the nonprofit is resilient and trustworthy.

Key question: How would you like to call your funders to say that you can’t operate because you lacked basic foresight?

Regulatory Compliance and Funding Requirements

Some nonprofits may be subject to regulatory requirements that mandate contingency planning. Additionally, funders may require a business continuity plan as a condition of their support.

Key question: When someone asks for or demands a business continuity plan, will you be ready?

Peace of Mind

You want to be able to deal with disasters with clarity and decisiveness.

Key question: If you had a business continuity plan in place right now, so you were ready for the unexpected, how would that make you feel?

A business continuity plan is critical for a nonprofit organization's sustainability and success. It ensures that the organization can withstand and quickly recover from disruptions, protecting its mission, operations, community, and reputation. As a bonus, it simply feels good.

Risk Alternatives provides training and support for organizations that want to improve their resilience, sustainability, and growth. For more information, email info@riskalts.com or call 608-709-0793.