As an organisation, how do you manage risk in your fundraising activities? Do you focus on financial or reputational risk, or both, or other things too? Do you keep going until you’ve eliminated every possible risk from your plans? If so, are your activities still worth doing by the end?
I recently popped along to the Arnolfini for the latest Bristol Fundraising Group talk about risk management in fundraising. The speaker was the excellent Ed Wyatt, an experienced Compliance Manager for multiple big charities and long-time fundraiser and trustee. Ed has kindly given us permission to share some key learning points here…
Conversations about risk in fundraising can be frustrating and unproductive. It can feel like natural risk-takers and risk-averse people are speaking entirely alien languages, and often the loudest voice in the room wins.
This can have several consequences:
In their bid to find The Next Big Thing in fundraising, some organisations instead stumble into The Next Big Headache.
Being too risk-averse can dilute promising fundraising ideas until they’re perfectly safe but no longer appealing or profitable enough to be worth doing.
In trying to avoid risk, it’s easy to inadvertently take the biggest risk of all – stagnating in a tough fundraising climate, then hitting financial difficulties as your safer income streams dry up.
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Source: Lime Green Consulting