Editor’s Note:
The collapse in December 2008 of Bernard Madoff’s investment company – and the unprecedented damage and destruction a number of foundations suffered in its wake – not only rattled the philanthropic sector, but left many organizations scrambling to answer unexpected (and unwanted) questions from the news media, donors and others. One of the stark lessons from this upheaval is that your organization always should have a current crisis communications plan in place

In the following article, Douglas Gould and Jennifer Hahn of Douglas Gould and Co. offer tips to guide the creation of a crisis communications plan.

Crisis or Bad News: A Solid Crisis Plan is Your Lifeline

The financial crisis of 2008 roiled the nonprofit community, inflicting lasting damage on thousands of organizations and causing them to seek cover.  But then just as the year was coming to a close, a scandal of gargantuan proportions threatened already beleaguered nonprofits and some foundations that were caught completely off guard.  Bernard Madoff’s alleged “Ponzi scheme” caught many by surprise, shuttering some foundations and causing many to reach for life support. This turn of events has sent one powerful message – Be Prepared!  In a scandal or disaster of any proportion, having a lifeline handy like a crisis plan can mean survival and growth.

So, what can serve as a lifeline?  A well mapped-out plan for navigating through the kinds of crises or bad news that any philanthropy or nonprofit might face at one time or another, including:

  • Governance failures
  • Embezzlement or misappropriation of funds
  • Asset crashes due to poor investment decisions
  • Litigation against a key leader or donor
  • Donor disputes
  • Sexual misconduct
  • Scandal involving staff that cuts to the core of your competencies, values or mission

When is it a crisis and when is it just bad news?  It’s merely bad news, no matter how painful, if the scandal doesn’t damage your core mission or threaten your ability to do your work long term. It’s a crisis when the scandal gets at the heart of what you do and puts the organization on tilt in the credibility department.  For instance, if your organization has a museum as part of its namesake, receiving looted goods and artifacts is a crisis. Or if your foundation is devoted to improving the lives of children, having your CEO charged with sexual abuse would cut to the quick.

How do you get beyond the shock of exposure to determine the facts?  Who’s going to take the mic?  How do you inform your key stakeholders? When are you going to tell what you know? The answer to these questions and the infrastructure to carry out all aspects of your organization’s communications during this time will lie in your crisis communications plan. 

In crisis communications, your overarching goal is to proactively preserve and polish  your organization’s reputation while diligently unearthing all of the issues and assuming  accountability for what has happened.  This behavior will help restore confidence in your brand as quickly as possible among all your audiences - be they funding partners, donors, policymakers, grantees, or the public at large. 

The first step that an organization must take is to make a clear assessment of what just happened.  Is it a crisis or a colossal scandal?

Simple rule of thumb:  Don’t deny, duck or dive.  And certainly don’t resort to “No comment.”   Tell what you know when you know it; promise to get back to all stakeholders as information becomes available.

Be prepared to admit wrongdoing, apologize and share solutions.  Have a plan and timeline in place that maps out the process for getting your organization out in front of negative stories to minimize damage to your brand and organization’s reputation. 

The plan should guide your team through:

  • Managing potential contingencies that the organization could face
  • Identifying the “go-to” people, leadership and decision-makers within the organization. The crisis team should consist of the:
  • Executive Director or Board Chair (who often will serve as the chief spokesperson)
  • Communications Director
  • Third-party spokesperson whose credibility can bring calm
  • Legal counsel, but not as main spokesperson to the media (remember that lawyers are experts in the law; not communications) 
  • Outside communications counsel, if required (it’s best to vet a crisis communications expert, have a contingency plan in advance, and remember that timing is everything – a counselor who’s familiar with your organization and key players can nimbly hit the ground running.
  • Setting up the initial emergency staff meeting
  • Quickly analyzing the nature of the problem, anticipating the media’s response to the crisis, and evaluating the best means for giving context and perspective to the crisis as it relates to all stakeholders
  • Determining the best modes of communicating with different audiences, whether it’s setting up website pages, writing a blog or creating a series of regular press conferences or media releases to address the problem directly, swiftly and responsibly
  • Providing a brief statement that offers an overview of the facts, says that your team has launched an investigation of the issue, and ensures that organization leaders will follow up shortly.  Also provide media with a single contact number and email address for funneling all inquiries through your communication office or outside counsel.
  • Engaging third-party spokespersons who are well respected, which can lend credibility among various audiences, and can set the context for ongoing stories about the crisis
  • Providing ongoing follow-up to all audiences
  • Assessing opportunities to reposition the organization, promote its mission, gain new partners and set the tone of leadership.

The plan, which should frequently get dusted off and updated, should contain:

  • Names of crisis team members
  • Contact information
  • Communications channels to be used internally and externally – email blast, instant messaging, phone messaging,
  • A press list with assignment desk numbers and email addresses
  • An inventory or check list to guide the team through the process of handling the crisis
  • Key influencers to partner with, who offer support and credibility to your organization.

Remember that your organization’s best chance of surviving a crisis or bad news is through advance planning, identifying the right team for containing a crisis and a clear process that maps to success.