Examine national and local nonprofit organizations in crisis and look at ways to prepare for crisis and reduce the negative effects of crisis when present.

1. Nonprofit Crises and
Crisis Planning
Association of Fundraising Professionals – South Dakota
January 15, 2013

2. Have you ever…?
Your nominations for nonprofits in crisis…good or bad
• Penn State
• The Second Mile
• Susan G. Komen for the Cure
• Livestrong
• United Way of America
• Multi-Cultural Center of Sioux Falls
• American Indian Services
• Sioux Empire Fair
• South Dakota Parent Connection
• Volunteers of America –Dakotas
• Washington Pavilion of Arts & Science

3. Why do bad
things
happen?

5. What we will cover
• Examples of nonprofit crises
• Ideas for crisis response planning
• Sample crisis communications plan

6. THE SECOND MILE

7. The Second Mile
• Founded in 1977 in State College, PA
• Mission to serve underprivileged youth
and their families
• 2009 budget – about $3 million
• Served up to 100,000 children & families
annually statewide
• Operations suspended in late 2011
For more: http://en.wikipedia.org/wiki/The_Second_Mile

8. Issues
• Founder’s Syndrome
• Founder as Titled Corporate Officer
• Board Conflicts of Interest—General
• Conflict of Interest—CEO and Spouse Both Employed by Nonprofit
• CEO with Multiple Professional Relationships
• Board Members Sharing Employment Relationship
• Lack of Board Term Limits
• Complex Governance Structure
• Board(s) Too Large
• Donors and Celebrities as "Leaders"
• Access to Legal Counsel
Source: The Second Mile - Lessons in Nonprofit Governance, Sumption & Wyland
http://www.sumptionandwyland.com/index.php?option=com_content&task=view&id=40&Itemid=57&rid=76

9. SIOUX FALLS MULTI-CULTURAL
CENTER

10. Too many headlines – KELO (1/2)
08/30/2010 - Board Names New Exec. Director For Multi-Cultural Center
08/27/2010 - Embattled Sioux Falls Center Has New Director
07/14/2010 - Audit Of SF Center Shows No Missing Money
05/06/2010 - Several Responsibilities In 'Interim' Director Role
05/05/2010 - Wallin New Multi-Cultural Center Interim Director
05/05/2010 - Multi-Cultural Center Names Interim Director
05/05/2010 - Embattled Sioux Falls Center Has New Director
05/02/2010 - Aware Defends Decisions, Actions Of Multi-Cultural Center
05/02/2010 - Aware: Reports About Leadership Are Untrue
05/02/2010 - Qadir Aware To Speak Today
04/28/2010 - Multi-Cultural Center's Impact on Hispanics
04/28/2010 - Center Director Did Not Resign Voluntarily

11. Too many headlines – KELO (2/2)
04/27/2010 - What's Next For Multi-Cultural Center?
04/27/2010 - Qadir Aware Resigns Amid Serious Complaints
04/27/2010 - SF Multi-Cultural Center Exec. Director Resigns
04/23/2010 - Commissioner Concerns Over Multi-Cultural Center
04/20/2010 - Qadir Aware's Car Business Under Fire
04/20/2010 - Multi-Cultural Center Budget Breakdown
04/19/2010 - Multi-Cultural Center Issues Boil Over
04/19/2010 - Questions Asked About Multi-Cultural Center
04/19/2010 - Leadership Questioned In Report On Center
04/19/2010 - Audit Of Sioux Falls Center Being Expanded
03/23/2010 - Exec. Director Returns To Work At Multi-Cultural Center
03/22/2010 - Multi-Cultural Director Back At Work Tuesday

12. Board Names New Exec. Director For
Multi-Cultural Center
[New ED Christy Nicolaisen] replaces longtime
executive director, Qadir Aware, who resigned in
April after an internal audit detailed changes
recommended for the agency. The nine-page
audit cited serious concerns about whether
Aware was capable of leading the center. The
resulting controversy played a role in the
departure of several board members.
Source: keloland.com

13. Issues at the Multi-Cultural Center?
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14. LIVESTRONG FOUNDATION

15. Note from CEO Doug Ulman on USADA Action
Jun 13, 2012 by Doug Ulman
We learned today that the U.S. Anti-Doping Agency has leveled charges against Lance Armstrong
that he violated its rules throughout his career, based on the testimony of anonymous accusers.
Regardless of anything anyone says, Lance Armstrong has been one of the most tireless and
effective cancer advocates in the world. His legacy as a cancer advocate and fundraiser is
indisputable.
When other athletes might have kept a cancer diagnosis secret, Lance made a courageous choice
to go public. That choice helped spark a revolution in how the world views cancer and its survivors.
Lance created the Foundation to serve cancer survivors before any of his Tour de France wins. Our
foundation has raised nearly $500 million to serve people and families affected by cancer. We help
cancer survivors struggling with the financial, emotional and practical challenges of cancer free of
charge. And we advocate tirelessly for legislation, policies and funding to further the fight against
cancer.
In our eyes, Lance will always remain a champion. Nothing can shake our faith in him as a leader
and trailblazer on behalf of cancer survivors. Our thoughts are with Lance and his family as they
face what can only be a very frustrating and difficult time as a result of USADA’s actions.

16. Issues at the Livestrong Foundation?
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17. RULES FOR COPING WITH
CRISIS

18. The best time to get ready for
adversity…

19. Mitigating Crises
• Pay attention to good governance and
good management practice
– Board recruitment & leadership development
– Leadership development for staff
– Policy & procedure documentation
– Ongoing assessment and self-assessment
– Consistent, honest communication norms

20. Mitigating Crises
• Know your organization
– Mission/vision/values/goals
– Strategic plan and strategic direction
– Key programs, clientele, constituencies,
stakeholders
• Know the community and marketplace
• Subliminal SWOT

21. Mitigating Crises
• Plan for adversity
• Plan in writing
• Educate board and staff
• Follow the plan
• NEVER ASSUME!

22. ―In the absence of the
facts, people will
make up their own
story. It will be
incomplete, incorrect,
and negative.‖
Margaret Sumption

23. SAMPLE CRISIS
COMMUNICATIONS PLAN
Source: Colorado Association of Nonprofits
http://www.coloradononprofits.org/wp-content/uploads/crisiscomm.pdf

24. Crisis Communications Plan -
Purpose
• Prepare the organization staff and board to effectively
and nimbly manage crisis communications;
• Help staff and board respond in a unified, professional
manner that reinforces leadership and creates loyalty;
• Strategically enhance the organization’s brand/role, and
the public understanding;
• Manage the distribution of critical, often sensitive,
information to the media, stakeholders, and public;
• Inform stakeholders of the organization’s position to help
shape a consistent response.

25. Crisis Communication Plan –
Overview
1. All crises should be reported to the board chair and CEO
immediately.
2. Only the chief spokesperson and back-up spokespeople are
authorized to release information. All other staff, board, and
committee members should be professional and helpful to the
media by connecting them with the spokespeople, but will neither
speak to the media, nor provide any information.
3. There should be one designated crisis management lead person.
There should also be one designated spokesperson who actually
interacts with the media and other inquirers. Most likely, but not
necessarily, the two roles will be filled by the director of
communications and the president & CEO, respectively.
4. All comments should be guided by professionalism and
transparency, and serve to mitigate the crisis while reinforcing the
leadership role of the organization.

26. Crisis Communication Plan –
Overview
5. "No comment" is never an acceptable response. If an answer is
unknown or cannot be immediately answered, make note of the
question, tell the inquirer you will get back with him/her, and do so.
If the question cannot be answered due to a policy (such as
sharing personnel information, etc.) let the inquirer know that.
6. Personnel matters are to remain confidential.
7. When possible, responses should be proactive, responsive, and
action-oriented.
8. We recognize the importance of media relations to public trust. In
times of crisis, maintaining effective media relationships will be
particularly critical in bolstering public confidence in the sector as a
whole.

27. Stakeholders, insiders, and
gossip
Stakeholders (staff, donors,
partners, etc.) should be
encouraged to:
• Defer to spokesperson(s)
• Resist temptations to:
– Spread the word (gossip)
– Speculate
– Jump to conclusions
– Panic
– Disengage

28. Questions and Comments?

29. Thank You!
818 S. Hawthorne Avenue
Sioux Falls, South Dakota 57104-4537
(605) 336-0244 or (888) 4-SUMPTION
www.sumptionandwyland.com