Disaster preparedness planning important for nonprofits

October 15, 2013

Disaster preparedness planning important for nonprofits

Disasters can strike anywhere, anytime and any business model. Just as for-profit organizations need disaster plans, so do nonprofits.Since most threats to nonprofits are the same as those that affect businesses, it is important they consider similar types of disaster coverage.

Nonprofit insurance options
Insurance companies that specialize in working with nonprofits can help establish appropriate coverage for successful risk management in the event of a disaster or accident. Risks can be weather-related, such as flood or hurricane damage, or associated with legal liabilities from automobile accidents. When reviewing possible insurance options, organizations should be aware of how much they can afford to lose due to a single disaster and insure accordingly. Consultation and planning ahead can ensure that nonprofits are prepared for the financial windfalls of unpredictable accidents and disasters.

Keeping things going
Especially for struggling nonprofits, which may have little or no reserves, it's important to know what activities are critical to keeping the doors open. If a nonprofit has building damage due to a weather incident, it should determine if any employees can work from home.

Many employees may be more than willing and able to complete a large portion of their responsibilities while telecommuting. This can help maintain basic operations while physical cleanup is underway. Before a disaster strikes, determine what tasks employees can complete without coming into the office and discuss how they would fit into a disaster-recovery plan for the organization. When disaster does strike, employees should be able to continue working again the next day.

What will it cost?
According to the U.S. Small Business Administration, organizations should also have some idea of what a disaster will cost outside of property damage.

"Calculate the cost of business interruptions for one week, one month and six months," Carol Chastan wrote on the SBA's blog. "Once you've done that, you'll be able investigate insurance options or build a cash reserve that will allow your company to function during the post-disaster recovery phase."

While the cost of business interruptions to for-profits will revolve more around the loss of sales and revenue, nonprofits should also consider that fundraising efforts and the availability of volunteers could change following a disaster. These types of losses are harder to forecast than those associated with for-profit business models, but even a rough estimate is better than no idea at all.

Content presented by First Nonprofit Companies, the leading provider of state unemployment insurance solutions for 501(c)(3) nonprofit employers.

single-post7550

Ready to chat?
Get in touch today to request a no-obligation savings evaluation.

Testimonials

Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.

Lutheran Services Carolinas, Salisbury, NC

My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!

Stone Valley Community Charter School, Huntingdon, PA

First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!

Jewish Silicon Valley, Los Gatos, CA

My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!

American Saddlebred Horse & Breeders Association, Inc., Lexington, KY

I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years

ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!

Beardstown Community Unit School District 15, Beardstown, IL

I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!

Innovative Services, Inc., Green Bay, WI

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ