Not-For-Profit Organizations
ICA understands and appreciates Not-for-Profit Organizations (NFPs) because as a service organization, we serve others on a regular basis. Furthermore, ICA’s philanthropic initiatives that are firm-driven or individually supported by its colleagues are a vital part of the fabric of our organization. In that regard, ICA’s Philanthropic Reward Program supports the initiatives of its colleagues with annual bequests to those Not-for-Profits proposed by its colleagues.
ICA’s experience in this industry includes dozens of large and small NFP Clients spanning several decades that include education, museums, advocacy for women and children, medical research, religious institutions and many other causes. It is abundantly clear that the NFP decision makers, in order to adhere to their mission and preserve their programs, must be acutely aware of the reputation of their organization and do all in their power to preserve that reputation. In this regard, their financial health and standing requires keen oversight to allow their supporters the opportunity to be involved for as long as possible. If the reputation of a Not-for-Profit is tarnished as a result of mismanagement, crushing negative publicity and even events beyond their control, it could cause the eventual demise of their organization.
The above risks require increased scrutiny over management and through the audit process of financial records, the insurance program and all the aspects of employment practices. ICA’s service to address management’s liability for the aforementioned is found under Our Solutions for Risk Management For Directors & Officers. This Solution was developed specifically for the purpose of protecting the management of Not-for-Profit and other types of companies.
In light of such, NFPs must take special care to address the adequate protection of their people and processes, including the executive management team, employees, volunteers, donors, members, recipients and the public at large. It may be a surprise to Directors, Officers and Board Members to discover that their personal assets may be at risk if a determination is made that those parties failed to perform the necessary duties and oversight dictated by their position within the organization. These individuals must be properly protected in order to recruit the best talent available in the marketplace to manage the organization as well as individuals willing to serve on the board, knowing that their personal assets are not at risk.
The executives of NFPs must regularly address risks that include improper compensation, fraudulent acts, theft by internal and external parties (including recipients), regulation and compliance requirements, advertising, sexual abuse, discrimination, hosting fundraisers and special events, failure to maintain a safe environment, liability tied to providing security and training, obtaining and maintaining driving and other essential records of their donors, failure to maintain appropriate insurance or other risks that are specific to the organization’s activities. NFP clients of ICA trust ICA’s expertise, while understanding that the most complete and accurate information provided to ICA is the foundation for our consultants to identify and manage their organization’s operational risks.
In addition to the most widely used ICA services by NFP clients, such as Risk Management and Insurance Coverage Analysis and Risk Management Program Marketing, ICA’s Mergers and Acquisitions Consulting Services are also relied upon when NFPs undergo mergers or acquisitions.
In one acquisition scenario, ICA reviewed the insurance program for several divisions of a nationally recognized community association, needing assistance with one of its divisions that faced financial constraints and tenant claim issues in the building it owned and operated. The division at risk was to be acquired by another one of the association’s divisions in better financial standing, and the acquiring division wanted to be comfortable that the dissolving division’s insurance program addressed the potential liability exposures from the acquisition. This process entailed a detailed analysis of the open insurance claims at that time, requiring review of their (then) current and historical insurance coverages, and prior to the acquiring entity making their final decision to take over the struggling entity. The acquiring entity’s decision was in part predicated on ICA’s expertise in assisting them in the review of historical and insurance files (of the entity to be acquired), and advising them on how the files were to be preserved to maintain accurate records. As a result, the Client succeeded in making their final acquisition decision based on their understanding of ICA’s analysis of the risks and management thereof.
In another instance, ICA was hired to perform its services for another nationally recognized Not for Profit Organization that was expanding its research and deliverable services to better aid disabled people, which resulted in ICA receiving the following acknowledgement:
“The staff of ICA was extraordinarily thorough, reviewing every policy in detail and providing sample text to our brokers to enhance our coverage. In particular… [Exemplifying] incredible capacity to evaluate not only the terms of individual policies, but also how the terms of one policy might enhance or mitigate the terms of another policy… The services ICA provided as independent advisors and auditors of our policies met and exceeded our expectations.”
– Not-For-Profit Industry Client
Contact ICA for a comprehensive list of client references.