Navigating the new normal in the wake of the COVID-19 pandemic is an especially trying time for the nonprofit sector. This is the fourth article in our nonprofit leader series developed in collaboration with a diverse cohort of nonprofit consultants based in the Tampa Bay Area.
Maintaining financial stability during these turbulent times is understandably a top concern for most
capacity, the wisest choice as we slowly inch back to business as usual is to err on the side of caution by first prioritizing the health and safety of your volunteers and employees. For better or for worse, your
employees are in a unique position right now to be your most vocal brand ambassadors. News outlets
are hungry to speak with frightened and angry employees about unsafe working conditions, particularly
those that may also have the potential to cause harm to the consumer.
Use the public’s now heightened focus on employee wellbeing to your advantage and give your staff
something positive to share. Make sure they know you are doing everything you can to protect their
health and safety. Take time to listen, answer questions, and address concerns. Be honest about job
stability and cuts that may be coming down the line. Silence the rumor mill by positioning your top
leadership as the most trusted and authoritative resource.
Finally, remember communication is a two-way street. Lead by listening and be willing to act on
employee feedback.
Stay In Tune with Current Compliance, Risk Management and Financial Requirements
For many businesses and non-profit organizations, COVID-19 exposed inadequate insurance coverage.
From event cancellation insurance to business interruption coverage, your coverage may have fallen
short due to exclusions (including for communicable diseases), or deductibles that proved to be too
high. Work with your insurance provider to review and update your policies for general liability,
Directors and Officers, special events, etc.
If you have bank loans, seek deferment or to refinance for a lower rate (or longer term) to stretch your
dollars and preserve cash. Ask your Landlord for some relief in reduced or delayed rent payments. Or
request they donate funds to your non-profit which in turn can be used to pay rent on time. If your
organization applied for Payroll Protection Program funds, get sound advice from a CPA or attorney to
make sure you maximize the forgiveness and comply with the legislation to avoid penalties.
If you have a contract with a hotel or other event venue for an upcoming event and believe you need to
cancel the event, consult an attorney before approaching the venue or other event-related vendors with
whom you have a contract. You need to know the strengths and weaknesses of your options before
proceeding to obtain the most favorable outcome. Even if you have hope that by the time the event
date comes, the pandemic will have subsided enough to make your event worthwhile, you should
negotiate to add to the force majeure clause specific terms to allow you to cancel later, if the need
arises. Most force majeure clauses are simply not specific enough to guarantee you can cancel due to
COVID-19 without penalty. Until lawsuits make their way through the court system, it is uncertain
whether “Acts of God” or “Government regulations” will be deemed to cover COVID-19. As the economy
opens, it will be even harder to claim force majeure, but you could see a massive drop in attendance and need to cancel or reduce the attendance commitment. Also, we could have a resurgence of cases. As the saying goes, hope for the best but plan for the worst.
Just like all employers, nonprofits are obligated under OSHA and other applicable laws to create and
maintain safe and healthy working conditions. To add to the complexity, you have to navigate HIPAA
compliance to ensure you are not violating privacy rights when asking about an employee’s health. Then there are unemployment claims for reduced working hours, furloughs, CARES Act extensions of the right to sick pay and extended Family Medical Leave Act terms. While it is never desirable to spend limited funds on legal fees, the failure to comply with laws will have far more costly ramifications.
Contributing Authors:
Heather Grzelka, APR, Madeira Public Relations
Laurie Huebner, SPHR, People Solutions
Sheryl Hunter, Esquire, Hunter Business Law
Shelley Sharp, MBA, Connect For More
Hardy Smith, Hardy Smith Consulting
Alyce Lee Stansbury, CFRE, Stansbury Consulting
Liz Wooten-Reschke, MPA, CGT, Connect For More
capacity, the wisest choice as we slowly inch back to business as usual is to err on the side of caution by first prioritizing the health and safety of your volunteers and employees. For better or for worse, your
employees are in a unique position right now to be your most vocal brand ambassadors. News outlets
are hungry to speak with frightened and angry employees about unsafe working conditions, particularly
those that may also have the potential to cause harm to the consumer.
Use the public’s now heightened focus on employee wellbeing to your advantage and give your staff
something positive to share. Make sure they know you are doing everything you can to protect their
health and safety. Take time to listen, answer questions, and address concerns. Be honest about job
stability and cuts that may be coming down the line. Silence the rumor mill by positioning your top
leadership as the most trusted and authoritative resource.
Finally, remember communication is a two-way street. Lead by listening and be willing to act on
employee feedback.
Stay In Tune with Current Compliance, Risk Management and Financial Requirements
For many businesses and non-profit organizations, COVID-19 exposed inadequate insurance coverage.
From event cancellation insurance to business interruption coverage, your coverage may have fallen
short due to exclusions (including for communicable diseases), or deductibles that proved to be too
high. Work with your insurance provider to review and update your policies for general liability,
Directors and Officers, special events, etc.
If you have bank loans, seek deferment or to refinance for a lower rate (or longer term) to stretch your
dollars and preserve cash. Ask your Landlord for some relief in reduced or delayed rent payments. Or
request they donate funds to your non-profit which in turn can be used to pay rent on time. If your
organization applied for Payroll Protection Program funds, get sound advice from a CPA or attorney to
make sure you maximize the forgiveness and comply with the legislation to avoid penalties.
If you have a contract with a hotel or other event venue for an upcoming event and believe you need to
cancel the event, consult an attorney before approaching the venue or other event-related vendors with
whom you have a contract. You need to know the strengths and weaknesses of your options before
proceeding to obtain the most favorable outcome. Even if you have hope that by the time the event
date comes, the pandemic will have subsided enough to make your event worthwhile, you should
negotiate to add to the force majeure clause specific terms to allow you to cancel later, if the need
arises. Most force majeure clauses are simply not specific enough to guarantee you can cancel due to
COVID-19 without penalty. Until lawsuits make their way through the court system, it is uncertain
whether “Acts of God” or “Government regulations” will be deemed to cover COVID-19. As the economy
opens, it will be even harder to claim force majeure, but you could see a massive drop in attendance and need to cancel or reduce the attendance commitment. Also, we could have a resurgence of cases. As the saying goes, hope for the best but plan for the worst.
Just like all employers, nonprofits are obligated under OSHA and other applicable laws to create and
maintain safe and healthy working conditions. To add to the complexity, you have to navigate HIPAA
compliance to ensure you are not violating privacy rights when asking about an employee’s health. Then there are unemployment claims for reduced working hours, furloughs, CARES Act extensions of the right to sick pay and extended Family Medical Leave Act terms. While it is never desirable to spend limited funds on legal fees, the failure to comply with laws will have far more costly ramifications.
Contributing Authors:
Heather Grzelka, APR, Madeira Public Relations
Laurie Huebner, SPHR, People Solutions
Sheryl Hunter, Esquire, Hunter Business Law
Shelley Sharp, MBA, Connect For More
Hardy Smith, Hardy Smith Consulting
Alyce Lee Stansbury, CFRE, Stansbury Consulting
Liz Wooten-Reschke, MPA, CGT, Connect For More