Managing Your Nonprofit for Resilience

1You and Your Nonprofit Deserve Risk Management

Nonprofits play a vital role in communities around the world.

In the developing world, nonprofits often serve as the only barrier between life and death. Even in highly developed economies, however, nonprofits provide enormous impact. In the United States, for instance, nonprofits provide nearly 6 percent of the gross domestic product. They provide just under one out of every ten US jobs, and they comprise half the nation's hospitals, almost half the institutions of higher education, close to 80 percent of vocational rehabilitation facilities, and approximately 80 percent of daycares. Furthermore, they account for almost all operas and orchestras, one out of every five nursing homes, and about one third of private clinics and home health care facilities.¹

Impressive as those figures are, they understate the importance of nonprofits in our communities. Nonprofits often provide essential goods and services for those who are most vulnerable. They address the needs of those who, because of age, health, socioeconomic status, or power dynamics, cannot operate effectively on their own in our economy. If the US economy is an engine, nonprofits are its vital lubricant. Nonprofits reduce friction, helping the otherwise sharp edges of society function more safely, productively, and humanely.

Nonprofits strive for sustainability, growth, and responsiveness to meet their important roles in society. But the harsh truth is that running a nonprofit ...