Five Tips to Disaster Prep Your Nonprofit
An Ounce of Prevention is the Difference Between Catastrophe and Survival
If there is one thing the last year and a half has made abundantly clear, businesses and nonprofits need to prepare to face natural and human-created disruptions. Floods, fires, pandemics, hurricanes, and industrial accidents create not only unplanned expenses but also have wide-ranging and long-term effects on your nonprofit’s ability to function. There is the potential to lose employees and donors or close for an extended time. Severe impacts to both short and long-term fundraising activities and the loss of financial partnerships are also a possibility. While you cannot prepare for every eventuality, some forethought and planning may help you save lives and make the job of recovery less arduous. Disaster planning is cost-effective, and it will get your organization running with a minimum of disruption. Many nonprofits assist their communities, and their services are needed more than ever after a calamity. Getting your “house” in order now will allow you to serve those around you when needed most.
1. Office Evacuation Plan or Emergency Evacuation Plan
The office evacuation plan, on its face, seems as exciting and helpful as the safety pamphlets on airplanes. However, when fully completed, the evacuation plan provides a safe and orderly means for exiting the premises and accounting for onsite personnel and visitors. It also serves as a quick reference for significant telephone numbers such as organization and building contacts, medical facility locations, and staff with emergency skills. If your organization rents space, the facility should already have a large part of this plan completed. Request a copy from building management, update it with your organization’s relevant information, and distribute it to your staff. Post the evacuation procedure prominently for quick reference. Everyone else needs to put together a plan. The Centers for Disease Control has a comprehensive template for an emergency evacuation plan. (You can download the pdf here). The Occupational Safety and Health Administration (OSHA) of Oregon has a more compact plan that you may download here. The main OSHA site also has an evacuation plans and procedures e-tool. There are numerous samples of emergency evacuation plans available on the Web for use as reference.
2. Inclement Weather/Emergency Closing Communication’s Plan
In upstate New York, winter weather factors strongly into everyday life from November till April. When I was in school, nothing was more exciting than hearing the radio DJ inform us that school was closed for the day. For adults, business closings are a more complicated decision. Many for-profit and nonprofit organizations in the Washington, DC area follow the federal government’s lead and close when it closes. In many parts of the country, businesses and nonprofits follow the local school system while others “make a call” on a case-by-case basis. One or two days of closure may not pose a significant problem, but floods or pandemics, for example, may close an organization for months.
Your organization needs to have a communications protocol and an administrative policy for significant emergency closings. Conveying accurate information to personnel, partners, clients, and vendors is essential in an emergency. Someone at the organization must have sufficient training and access to post open/closing/operational information on the organization’s website and social media pages from a remote location. Notify employees of closures and emergencies via text, cell phones, email, or all of the above. I recommend your plan include a communications channel checklist with personnel assigned to update each channel.
Before a crisis, leadership should delineate policies governing employee payment, benefits, and remote work when an emergency is declared. Establishing these policies and procedures before a problem arises helps avoid potentially costly decisions made in the heat of the moment. Well delineated policies and practices will support staff and help them remain focused as they know what to expect. Points of stability amidst uncertainty are comforting and reassuring. (Here is an Inclement Weather Policy Sample and there are plenty of additional examples online.)
3. Data Protection
Data is probably the most valuable asset your organization possesses. Donor, mailing, vendor, and customer lists, as well as accounting files and electronic materials, are vital pieces of infrastructure for the successful operation of your nonprofit. Safeguarding data is a mission-critical activity. Given the vast array of cost-efficient options, there is no reason that every nonprofit should not have its data regularly backed up and protected. Cloud backup and storage allow for secure, remote digital storage and access. As long as you can get onto the Internet, it is possible to access your data. Companies such as Google (Google Drive) and Apple (iCloud) offer both free and tiered plans. AT&T, Comcast, Verizon, and other Internet service providers offer programs for personal, nonprofit, small business, and large enterprise backups and storage. For organization’s using Microsoft 365 or the Google business apps, cloud storage may be included with your subscriptions. There are also backup companies that work specifically with nonprofit organizations. (Click here to see Cloudwards analysis of the best backup providers for nonprofits and NGOs.) The cloud offers a tremendous amount of safety and security and peace of mind when everything goes pear-shaped.
4. Essential Documents
Every household and business possesses crucial documents, such as passports, deeds, incorporation papers, or operational by-laws. Materials of this importance should be kept in a safety deposit box offsite or, at the very least, a fireproof safe onsite. However, it is not uncommon as time passes that papers that should be in an offsite box end up residing in the office. Documents, such as incorporation papers, 501(c)3 determination letters, and the like, are part of the disaster recovery process and must be accessible in a crisis. I recommend two strategies for preparation.
First, all essential documents should be scanned (nearly all printers and copiers have this functionality) and made a part of the regular backup plan. Services such as Dropbox, Google Drive, and Microsoft One Drive are great places to store these documents so that you, your accountant or financial officer, and your Board Chairman can access these documents.
Second, I recommend what sailors call a “ditch bag.” The ditch bag contains the most critical items that you will need to survive in a lifeboat. Similarly, your organizational ditch bag should include all the materials necessary to help your nonprofit recover, including government documents such as licenses, certificates of occupancy, and tax determination letter. I also recommend it contain your insurance binder, checkbook, payroll information, and a copy of your latest financial statement. The ditch bag should go with whoever will oversee post-disaster recovery.
5. Insurance Review
Annual insurance coverage review can be complicated, tedious, and frustrating especially comparing diverse offerings from multiple carriers at multiple levels of coverage. However, the time spent on this task is an investment because the appropriate insurance coverage may be the difference between a debilitating financial burden and a recovery that gets your nonprofit back on mission and helping people. Your insurance agent should assist you with evaluating and understanding your policies and suggesting additional coverages that may be relevant to your situation. Do not be afraid to solicit multiple bids from multiple carriers. If someone on your Board or within your advisory sphere has insurance experience, their involvement may be beneficial. The challenge for nonprofits is striking the proper balance between the cost and coverage.
Some fundamental questions to consider with your insurance are:
1. Do you have enough coverage for material losses?
2. Does your policy cover data and electronic losses?
3. Does your policy cover data breaches?
4. What flood or water damage coverage do I have?
5. Does my policy cover relocation or temporary premises?
6. If renting space, what is covered by my renter’s insurance, and what does the building’s insurance cover?
Disaster preparation is no guarantee of a successful recovery, but it significantly improves your organization’s chances in very trying circumstances. It also provides peace of mind knowing that you have done what you can to ensure the safety of your staff and the resilience of your nonprofit.
If you have other preparation suggestions, let’s hear them. Email me at skip@ql3strategies.com or feel free to post them in the comments section.
