Chapter 1Thinking About Risk

We began talking about risk after reading report after report of high-profile business failures in well-regarded nonprofit organizations. The tragic downfall of these organizations, long known for providing important and even essential services, left us wondering why nonprofits and NGOs go belly-up and whether there was something to be done that could prevent or change this outcome. From these conversations and our experience leading, working as staff and volunteers, and serving on boards, The Nonprofit Risk Book was born.

As we began scanning the field in search of clues, patterns and examples emerged with alarming clarity. We found countless instances of nonprofit organizations, large and small, that had failed ...

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