Depends on the type of risk. If it is reputational risk because the program doesn't align well with the mission, then you should approach the issue as one of potential mission drift and foster discussion about mission alignment. If the risk is purely because of the nature of the activity, then you can pursue insurance to cover the risk, policies to help limit risk, and contracts/waivers/indemnification clauses to transfer the risk to others. For any risks that aren't worth the benefit, you can work with that board member to discuss the trade off and explain the risk to them and how it would be better to avoid the risk.

When a board member suggests a risky fundraising tactic, here’s a key tip to protect your nonprofit's reputation: 🚀 Implement a Pilot Test: Before rolling out the strategy widely, test it on a smaller scale. This allows you to gauge donor response, monitor any reputational risks, and make adjustments based on real feedback—all while limiting exposure. ✅ Testing keeps your organization agile, lets you assess risk more accurately, and can reveal whether the tactic aligns with your mission and values before a full launch.

As I review jobs for Executives in nonprofits, Boards faithfully stick in fundraising requirements. But it's all risky with gifts under $100 declining by 10% in 2023 alone! Donor advised funds are the sole growth category. It is still a great idea to have successful fundraising events but the purpose needs to change to brand building. I suggest that the Board chair and Executive Director work together to educate the Board and lead a discussion as to the purpose of an event. As Matthew Brown says in his response, address the risk question too. I suggest putting risk on the agenda so that the entire board discusses because setting the risk appetite is a proper board function.

This is becoming more prevalent with me as certain leaders suggest their "system" or "method" of fundraising. I first ask, does this jeopardize my relationship with any donors. New ideas are great but only if they don't erode trust. Secondly, is the suggestion repeatable—can I use the same method with others? The nonprofit world has a lot of experience and history, and one must be cautious of tactics that prey on emotion or opportunity and don't push forward the goals of the organization itself.

When a risky fundraising tactic is on the table, here's how to navigate it: Evaluate the impact: Weigh the short-term wins against potential long-term damage. Focus on your mission: Keep the nonprofit’s values and reputation at the forefront of decisions. Open dialogue: Share concerns respectfully, highlighting risks to the organization’s trust and integrity. It's about balancing ambition with responsibility—protecting your brand while staying true to your mission.

To balance risk and reputation in fundraising, I start by assessing the potential impact, weighing short-term gains against possible long-term effects on credibility. I gather insights from a variety of stakeholders—staff, donors, and beneficiaries—to gauge comfort levels with the proposed risk. Additionally, I create a contingency plan to ensure we're prepared to respond swiftly if the strategy backfires. This careful approach helps protect our reputation while pursuing growth.

Every Board should have a documented Risk Appetite for the various activities their organisations undertake - including fundraising. This appetite should be reflected in a Risk Framework that includes a representative Risk Matrix. The Risk Framework and Matrix provide an objective method by which to measure each identified risk, and to determine if identified mitigation strategies will bring that risk within the boards Risk Appetite. Only then is a Board in a position to make a decision to proceed or not. Reputational Risk can be very subjective, and will most likely require the most consultations with the most number of stakeholders. This is therefore one of the most challenging risks to evaluate.

When a board member suggests a risky fundraising tactic, it’s essential to balance innovation with reputation management. Start by thoroughly assessing potential risks, including stakeholder perceptions and brand alignment. Encourage a data-driven conversation with the board, weighing projected outcomes against possible reputation impacts. Propose alternative methods that align with the organization’s values while still exploring creative avenues. Emphasize transparency and ethical practices to maintain trust with donors and the community. This approach allows you to explore bold ideas without compromising the integrity of your nonprofit.

Since fundraisers are the primary source of income for non profits, consider incorporating the fundraiser for a short period of time. Make sure the fundraiser is altered to align with the non profit mission statement and values. This is important to maintain the reputation of the organization. Finally, analyze the fundraiser’s contribution to the non profit and adjust the fundraiser based on the results. Make it a priority to compare and contrast the reputation of the non profit before and after the fundraiser.