2017 Nonprofit Organizations Industry Risks
Nonprofit organizations reported greater concerns about the overall level of risk facing their organization, cyber-related risks and financial issues than businesses overall.
Nearly half of nonprofits view their business environment as becoming more risky, compared with 37% of businesses overall. Cyber risks and medical cost inflation top the concerns of nonprofit organizations, which are more concerned than businesses overall about cyber risks and financial issues.
By far, nonprofits consider the changing workforce, including the impact of an aging workforce, the influx of millennials and changing workforce availability, to be the riskiest emerging trend, cited by 46% of nonprofits. Compared with all businesses, nonprofit organizations are also more likely to view emerging trends, such as increased connectivity, social media and eBusiness, as offering opportunities for their organizations over the next five years.
More than three in five nonprofits (64%) have a business continuity plan, which is 12 points higher than businesses overall. A higher percentage of nonprofits compared with all businesses also reported taking other risk mitigation steps, including conducting a periodic review of insurance coverage with a broker (46% compared with 37% of businesses overall) and consulting with a safety consultant from their insurance company (34% compared with 24% of businesses overall).