In episode 2 of The Board Minute, Katherine Smith talks about the risks of third-party fundraising and gives non-profits four risk management tips to consider:
- Define expectations and goals from the get-go, and document them. You will have a greater chance of success and partnering again if both parties have a chance to express their goals and work towards them. Report them in your board meetings so they are recorded in your minutes.
- Define what would constitute a cancellation, how you will monitor your progress, and continue to assess if you should proceed as planned.
- Work with the third party to plan and have proper controls in place to keep all your participants, volunteers, staff, and property safe.
- Purchase special event insurance coverage and make sure your organization is added as an additional insured to the policy. This means that if something happens at the event, your organization is covered by the special event policy.