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When a nonprofit faces public criticism, a lawsuit, or accusations involving staff, volunteers, or leadership, the damage can spread quickly. Crisis missteps such as an unverified statement or delayed response can make matters worse.

Effective crisis management requires a balance between legal caution and transparent communication. Knowing how to respond, and in what order, helps protect both your mission and your organization’s reputation.

Taking an Approach That’s Appropriate for the Crisis

No two crises are identical, and taking a uniform approach can make your nonprofit appear unsympathetic or as if you’re not treating the specific accusations with the gravity they warrant. How you respond should depend on what’s at stake and who’s involved.

• Misconduct allegations: A volunteer, employee, or board member is accused of harassment, discrimination, or misuse of funds.
• Program-related harm: A participant is injured or alleges negligence during a program or event.
• Financial irregularities: Questions arise about how donor or grant funds have been managed.
• Public backlash: A controversial partnership or social media post draws widespread criticism.

The first step is identifying the type of problem and which advisors—legal, PR, HR, or board governance—need to be consulted immediately.

Secure Legal Counsel Before Making Public Statements

Many nonprofits act too quickly when a crisis hits, issuing statements to “get ahead” of the story. Without legal review, those statements can admit liability, disclose confidential information, or worsen exposure. Nonprofit general counsel can:

• Determine what can safely be shared publicly.
• Coordinate messaging with insurers and regulators.
• Preserve records, emails, and internal notes for possible investigations.
• Advise the board on conflicts of interest or executive accountability.

Even if the situation starts as a reputational issue, a poorly worded comment can turn it into a legal one.

Activate the Board’s Oversight Role

The board of directors is ultimately responsible for ensuring that the organization responds lawfully and ethically during a crisis. That oversight begins with convening emergency meetings to assess the facts and approve an appropriate course of action.

If leadership is implicated, the board should authorize an independent investigation to avoid conflicts of interest and preserve credibility. All decisions and discussions should be carefully recorded in meeting minutes to demonstrate transparency and accountability.

The board must also confirm that governance policies, such as conflict-of-interest and whistleblower protections, are being followed. Active, documented board involvement reassures donors, regulators, and the public that the organization is handling the situation responsibly.

Manage Internal Communications Before Going Public

In most crises, employees, volunteers, and donors hear rumors long before an official statement is made. Establishing clear, consistent internal communication prevents confusion and speculation.

Leadership should share verified information with staff, instruct them to route all media inquiries to a designated spokesperson, and brief key donors or partners early to maintain confidence.

Avoiding speculation or finger-pointing until the facts are confirmed helps maintain control. Once everyone internally understands the organization’s position and response plan, the nonprofit can issue a concise public statement that acknowledges the issue, commits to transparency, and sets expectations for future updates.

Coordinate With Insurers and Regulators

Crises often trigger reporting or coverage requirements. Immediate coordination with insurers and regulators can prevent secondary issues.

• Notify your insurance carrier: Claims involving employment disputes, injury, or defamation often require prompt notice to preserve coverage.
• Engage regulators when necessary: If charitable assets or fiduciary duties are questioned, contact the Georgia Attorney General’s office or Secretary of State.
• Seek legal help for employment issues: Counsel can guide responses to EEOC or Department of Labor inquiries if personnel complaints are involved.

Plan for Transparency and Recovery

Once the immediate crisis is stabilized, attention should shift to long-term recovery.

1. Conduct a post-crisis review to identify what went wrong. Pinpointing policy gaps, training failures, or oversight lapses is the first step in preventing a future crisis.
2. Update internal procedures and governance policies to address those weaknesses.
3. When appropriate, share a summary of corrective actions publicly to rebuild trust.

Nonprofits that acknowledge mistakes and implement visible reforms often recover credibility faster than those that remain silent and hope the issue fades from public attention.

Preventative Steps for Future Crises

One of the most common crisis-related issues is simply a lack of imagination. Many organizations only consider crisis management after a specific problem occurs, and even then, they may narrowly focus preventive action on that specific scenario. Broad crisis preparation with the help of nonprofit general counsel is one of the best proactive defenses.

1. Create a written crisis response plan that defines decision-making authority and communication chains.
2. Train key staff and board members in media response and confidentiality protocols.
3. Review insurance coverage annually to ensure it addresses misconduct, defamation, and reputational risk.
4. Schedule periodic legal and governance audits to catch vulnerabilities before they become public issues.

Protect Your Nonprofit During Times of Crisis With Trusted Legal Counsel

A public controversy or allegation shouldn’t define your organization, but unfortunately, nonprofit leaders don’t enjoy full control over donor and public reactions.

If your organization is facing scrutiny, or you want to be prepared for the unexpected, a Georgia nonprofit attorney can help you navigate the legal, governance, and communication challenges of a crisis.

Call the Law Office of Cameron Hawkins at (678) 921-4225 to minimize risk and safeguard your nonprofit’s public trust.