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FIN380 / FIN 380 / Week 5 Nonprofit Risk Management Plan

FIN380 / FIN 380 / Week 5 Nonprofit Risk Management Plan

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Week 5 Learning Team Assignment Nonprofit Risk Management Plan

Resources: Risk Management Plan Template and information

about selected organization

Create a basic risk management plan, using the Risk Management

Plan Template. The plan must include information on how you will

manage risk in financial assets, physical assets, human resources,

and officer & director liability.
Week 5 Learning Team Assignment Nonprofit Risk Management Plan

Resources: Risk Management Plan Template and information

about selected organization

Create a basic risk management plan, using the Risk Management

Plan Template. The plan must include information on how you will

manage risk in financial assets, physical assets, human resources,

and officer & director liability.

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Autism Speaks Risk Management Plan

FIN/380

Autism Speak’s 2010 total revenue was $53. cure and a remedy for autism. Autism speaks is a charitable company that's exempt from paying taxes according to IRS Code Section 501(c) (3). The program after that talks about 4 areas of potential risk: fiscal assets. actual assets. The organization’s fundraising actions consist of direct mail. and advocating for the requirements of people with autism as well as their families” (Autism Speaks. p. and cause-related advertising (Autism Speaks. a charitable company focusing on the study and management of Autism. 2011. 1). As per BBB Wise Giving (2011). A review of Autism Speak’s 2010 funds is listed in Table I. planned giving. radio. human resources. 2011). 2011.Autism Speaks Risk Management Plan Risk Management is a procedure companies undergo to judge and safeguard the organization from any possible losses. The vision of the company is “dedicated to financing. The plan starts with a short summary of the company and its vision. Autism speaks is the biggest autism scientific research and advocacy company in the United States (Autism Speaks. 2011). special occasions. 1). printed ads. An efficient risk management program starts with an agenda which helps the company in finding out and knowing risk. and officer and director responsibility. p. . boosting understanding of autism spectrum ailments. 23% for fundraising actions and 4% for admin expenses.879 of which 73% of finances were utilized for programs.898. online appeals. avoidance. “It is permitted to collect donations deductible as charitable contributions for federal income tax purposes” (BBB Wise Giving. grant proposal. The attached Risk Management Plan is for Autism Speaks. television. Organizational Overview Established in 2005. research into the reasons.

and utility of latest technologies. and people with autism to offer instruction. households.9 $51. The dedication of the company is to increase public awareness regarding autism as well as the difficulties that folks. 2011).6 $20.9 $14. At Autism Speaks. acceptance. teachers. Within that the charitable actively recruits fresh researchers and team technology developers with knowledge of the field for example care providers. Autism Speaks is generating latest technologies for example wearable bio-sensors for all those with Autism to assist self-regulate behavior.2 $11. and community cope with.0 $6. remedies.7 $2. Autism Speaks 2010 Income Summary Total Revenue Total Expenditures Net Income Starting Assets Closing Net Assets Total Debts Total Assets Organizational Objectives and Mission Autism Speaks is a company attempting to supply solutions to an international health crisis. By setting up thorough assessment procedures and committing to standards of quality. preventions. To support the vision as well as its objectives the charitable works feverishly to boost the finances essential to create one voice to speak for individuals who can't. The organizational objectives and vision of the charitable company made up of in depth research to provide understanding of the reasons.Table 1. The effort of Autism Speaks sets out to enhance the finances essential to promote collaborations and spread research by way of symposia and seminars at national and global autism and technology meetings (Autism Speaks. Finding the missing bits of the puzzle requires compiling the $53.7 . and treatments for autism by financing international biomedical research. the vision and objectives of the company are to bring modification and trust in the future for all that has a problem with autism spectrum ailments.

$685. Risk Management Plan Risk management problems directly impact all aspects of the organization including funds among other sources. The ideal way to sum up the vision and objectives of the company is thru its motto that ‘autism speaks and today it's time to listen’.$10. cash.303.380 . This is a listing of Autism Speaks Fiscal Assets: • • • • a.$1. and telecom technologies are at the forefront of the actions at Autism Speaks to deal with the international health crisis. Many assets may include land.712. The economic climate changes therefore an excellent risk management plan will see them through the stormy weather. investments.413 Net accounts receivable . accounts receivable. The plan will additionally help safeguard them from the risk when they would encounter a case. Assistive.$4. and so on. Financial Assets Fiscal assets are shown as intangible assets since they have value. Autism Speaks has several assets included in the list but they also have funds from the federal. rehabilitative.various tools to assist in the search to know better autism. stocks.440 Savings as well as Temporary Cash investments . Risk management generally involves the CFO of an organization as well as in the situation of Autism Speaks the individual responsible for this would be Tom Hetzel along with the board members.819. Identify Risks Cash at the conclusion of 2010 .896 Promises at the conclusion of 2010 . state. contributions. as well as local governments. A risk management plan would protect Autism Speaks since it will help them in unsure times.

• The Chief Finance Officer would determine these types of dangers by observing the marketplace since Autism Speaks has investments either in temporary cash or in open public traded investments. The main one is illiquidity which means insufficient liquid assets. b. It may also be in the form of financial loans. fiscal risk might arise from them stealing from the organization as well as law suits which may have been due to a worker as well. How the Chief Finance Officer (CFO) would cope with this is to have all parties send budgets as well as the CFO would compile those and make sure there isn't any wasteful spending and where the budget requires improvements and what areas could be reduced. • Fiscal danger would include handling the budget.• • It is essential for any organization to know the fiscal dangers since it could make or break the organization. There are many kinds of risks in the fiscal aspect of any organization. investments. Evaluate Risk • In analyzing Autism Speaks IRS 990 form the clear fiscal risk is the company doesn't have a completely independent accountant overlooking the fiscal statements. Since the marketplace and rates of interest fall and rise the CFO would need to be practical and make sure these assets are invested prudently. It also can be the workers of Autism Speaks and a few of the complexes which they would occupy. particularly a charitable organization just like Autism Speaks. Some years contributions may pour in and there are other years which are rare. • In respect to the workers. • One more method to determine risk in the fiscal world is to consider the risk originating from contributions. • Since Autism Speaks depends heavily on public contributions and fundraising occasions this might be one more fiscal risk when they are not .

when they project 100. • • Investing prudently would assist the organization to continue moving forward with the motive they support that's financing autism research. Suggested Risk Management Techniques • Having a completely independent accountant review the fiscal reports would be useful to decrease a few of the fiscal dangers. This would make sure the board of trustees that things are right and correct with the fiscal statements. • Despite the fact that Autism Speaks does have types of insurance it will help them for the worst case scenario for example legal cases. In difficult times people might not have the cash to give to their preferred charitable organization or NPO. c. fewer individuals will donate it would damage their budgeted amount. some disasters. but it also has a huge cost too. and so on. Since the economy considerably changes recently it'll ensure them a good fiscal health. For instance.000 attend and from that number. Overseeing the fiscal statements regularly would remove a few of the risk simply because they would observe where their cash is going and originating from. the company will lose money. It will also demonstrate to them how to budget the weeks and months in advance. however.cautious. Autism Speaks sponsors several activities throughout the country like the Autism Speaks 400 for NASCA. NASCAR does contribute a portion of the ticket sales to them too. if the seats remain vacant. . • The vision is to convey consciousness and fund research regarding Autism. Even though they collect contributions during the occasion at the track this might be dangerous.000 people in the stands and just 50. therefore a NPO for example Autism Speaks would need to modify their expenditures to stay helpful to their vision. This event brings consciousness to the reason. theft.

as well as equipment as $703.Physical Assets Actual Assets are materials. Actual assets are thought to be physical assets and need specified accounting ways to take into account possible depreciation. stock. but due to the character of the company it doesn't have stocks available for sale or use. Bad liquidity alternatives. Identify Risks • • • • • • • Protecting actual assets from thievery as well as catastrophe. Taking into consideration the accumulated depreciation of actual assets and need for substitution. Decline in market price or loss of value because of economical changes.452. Autism Speaks physical assets include: • • a. funds. exchange. Bad knowledge of the third party value of asset against the value to the company. Repair along with other expenditures outweighing the asset value or income received from the actual asset. or commercial worth. as well as equipment that may be liquidated to help in paying bills or decreasing expenditures. End of the year total worth of land. A few types of actual assets incorporate properties. The company made $2. constructions. Bad knowledge of using assets for optimum efficiency and undervaluing the assets for the company.353 considering accumulated depreciation.295 from sales of assets. . physical goods having economical. Autism Speaks has got properties and equipment utilized to run the company.

b. Incorporated in the evaluations a fiscal model of the planned use for the company as well as the connected monetary value. Additionally including regular evaluations of actual asset value in the market. • The fiscal information provided for 2010 shows the availability of liquidity for actual assets. Suggested Risk Management Techniques • Regular and frequent evaluations of organizational actual assets are suggested. Evaluate Risk • The Autism Speaks tax forms disclose the company clearly lacks stocks which could be employed for liquidation purposes. The company made a substantial amount from asset sales however this isn't a continuous alternative until the company continues to invest in actual assets to keep the present value. • Actual assets for example constructions are mainly used for admin and management purposes. A comprehensive worth of the asset also helps . • Poor control over actual assets may incur substantial unneeded maintenance expenses. Correct risk management necessitates the consciousness and regular assessment of assets including value to the company and potential liquidity worth. c. This lets the company to sell and reinvest in better actual assets. Autism Speaks needs centers to help in objectives of interaction as well as research. The insufficient stocks also remove many associated expenditures which would otherwise be incurred. The unplanned loss of actual assets mainly might influence the company reducing efficiency and boosting expenditures while the company attempts to recover.

(2007) note. Human Resources a. Zietlow. As per Autism Speaks’ 2010 IRS 990 form. the company has 238 full and part time workers. This repair may also help in keeping asset value for longer use and liquidity alternatives. • Autism Speaks must ensure to invest in proper insurance to safeguard actual assets from unforeseen loss and help the company with recovery of the assets rapidly to prevent reductions in efficiency and enhanced expenditures. 504). et al. • Company administration must include fiscal along with other divisions to help with handling actual assets to achieve an intensive knowledge of the fiscal and productive ramifications for the company.in thinking about liquidity alternatives regarding the requirement for emergency cash. Hardin. A few of the Recruiting causes of danger which the Autism Speaks encounter are: • • • • • Recruitment methods Worker attitude Employee/volunteer actual as well as emotional security Remuneration as well as benefits Worker supervision . • Precautionary repair might help the company prevent big expenditures happening in crisis conditions. “[A] charitable organization’s best asset is the individuals who provide resources (service and monies) for its vision” (p. Identify Risks Companies not just face danger from inadequate control over actual and fiscal assets. they also face danger with the control over the organization’s human assets.

Autism Speaks runs a fragile balance in paying workers a comparable wage while still concentrating on the organization’s vision. grievances. the harm to the organization’s status locally might be ruined. 509). and low staff morale. Additionally. accusations of discrimination.b. As Zietlow. 2007 show. which might result in reduced contributions. reduced salaries could cause increased reduced production and higher turnover rates. . and government financing. But. Evaluate Risks • Unethical behavior. • • • A risky work place can lead to injury or demise. A tense work place can lead to legal cases. c. Hardin. nuisance along with other bad behavior can lead to legal cases. loss of production. as well as harassment. et. grants. al. “[T]he intangible benefits of working in a charitable atmosphere let companies to employ competent people who are devoted to the vision of the company at salaries below the industry or local average for the region” (p. Suggested Risk Management Techniques There are various methods Autism Speaks may use to help in mitigating or capitalizing on risks linked with Recruiting. • Recruitment methods for example employing methods and discrimination can result in legal cases and potentially employing a worker which either doesn’t match the organization’s vision or may by her or his actions harm the objectives of the company. • Insufficient training of employees in leadership and controlling workers may lead to low morale.

there is an unparalleled level of debt exposure in which directors and officials are facing a substantial rise of liability cases and insurance costs to safeguard themselves.• • Conducting comprehensive as well as efficient testing on potential candidates. • Frequently analyzing the organization’s payment policies to ensure they are in accordance with the objectives of the company. Autism Speaks compares the pay of its highest paid workers to similar positions in other charitable company of similar size (Autism Speaks. Offer workers a nameless avenue to report any violations. the caliber of management which the charitable company achieves is in direct connection to the problem and connectivity of its directors as well as officials. Make sure workers are properly trained in the organizational security. These days. The integrity at work which Autism Speaks epitomizes is obvious in its international vision to . • Make sure employees are properly trained in morals which include harassment and discrimination. Make sure the company offers safe working environments and performs frequent safety audits and upgrades. Continually check and assess any possible violations. Make sure the organization’s Human Resources’ policies and procedures provide clear direction and knowing the organization’s tradition and morals to all workers. Autism Speaks. Officer and Director Liability Within the charitable company. The future failure or success of Autism Speaks might be dependent on its capability to lure the kind of quality officials and directors that have the skills essential for high quality governance and leadership. • Conduct regular benchmarking to make sure rewards along with other HR policies are in line with other charitable companies. • • Offer all workers with thorough job descriptions and terms of job. 2011).

state. therapies. . laws. fiduciary responsibility. Identify Risks • • • • • b. Theft of assets.provide autism a voice through its officers' and director's reducing debts by showing ethical standards. Compliance by officials as well as directors is a huge danger for Autism Speaks that may emphasize its capability to achieve its vision to give persons. and obedience Evaluate Risks Theft is a main problem for Autism Speaks that is carrying out thorough research to offer insight into the reasons. households. preventions. and proper risk management strategies to achieve its vision and objectives. The rules and regulations established by the regional. In the same respect officials and directors might steal the reliability of the charitable for his or her progress. and compliance. and community hope. and treatments for autism by financing international biomedical research. a. assessment. devotion. and federal organizations which oversee autism speaks activities needs an openness which the charitable officials and directors should adhere to vehemently. rules. The charitable does face several risks as it relates to its officials who need identification. concepts. The devotion of the company to boost public awareness regarding autism and discover a remedy can all come to a sudden end with noncompliance by the organization’s officials and directors. as well as reliability Conformity Clash of interest High salary Responsibility of care. Officials and directors who have direct knowledge of developments in technology or revolutionary ideas might steal ideas for a lucrative gain.

Suggested Risk Management Techniques The important measures which autism speaks takes to safeguard the company from the risks which officials and directors present include a yearly analysis of its liability to make sure that it's well protected. nevertheless the income streams that a company just like autism speaks may be tempting for officials and directors to tap into for private gain.Clash of interest may be a serious issue for autism speaks when officials and directors don't provide sufficient disclosure behind the rationale for company decisions. devotion. Assessing the debts of officials and directors that serve the cause of Autism Speaks. Officials and directors should take the measures to assess similar organizations for a guideline to compensation with complete disclosure in board discussions and minutes. c. An official or director that has links to the banking industry creates an obvious clash when directing the nonprofit’s financing in a way that will benefit her or him. and attorneys making it necessary that all dealings are carried out at arm’s length. Potential clashes of interest are many as numerous officials and directors often are experts including bankers. Shifting risk is a basic risk management method to shift legal as well as fiscal responsibility for any loss or transgression by an official or director. The use of facts and data combined with the funds of autism speaks should be done with a pledge or code of conduct to do what's in the best interest of the charitable company. and obedience which officials and directors within autism speaks should adhere to. one problem which rings out is high pay. The charitable company also uses risk management methods for example background checks along with continuously documenting board actions. Officials and directors should make careful decisions bearing in mind the nonprofit’s vision and values. . The entire philosophy of a charitable isn't for fiscal gain. The responsibilities of care. insurance real estate agents. performing organizational matters with skills and putting company interests above one’s own are necessary.

decisions. households. identified and assessed risks that face the company in the areas of fiscal assets. and minutes in detail. as well as taking measures to offset possible dangers. The plan helps the company in finding out. Limiting the debts of officials and directors is of top priority for autism speaks on its vision to increase public awareness regarding the problems which autism has on persons. actual assets. developed for Autism Speaks. This Risk Management Plan. assessing. Formulating clash of interest policies and external audits is a useful method which Autism Speaks uses to steer and monitor official and director actions. and community and look for a remedy. and officer and director debt. Conclusion The significance of a Risk Management Plan to Autism Speaks can't be understated. More recommendations on possible risk management methods available to the company have been talked about. human resources. .

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