The nonprofit sector thrives on passion, purpose, and community. But even the most mission-driven organizations face risks that, if unaddressed, can derail their work. This month, we sat down with Doug Tweddle, Client Executive at BFL Canada, to explore the evolving risk landscape for nonprofits and the steps boards, executives, and funders can take to stay ahead. 

Employment Practices: A Silent Storm 

“Employment practices claims are rising,” Doug cautions. Constructive dismissal, wrongful dismissal, and claims through the Alberta Human Rights Tribunal are increasingly common. For boards, relying entirely on administrative teams for HR management can leave gaps in oversight. 

“A robust HR policy is vital,” Doug emphasizes. “Hiring, annual reviews, and consistent documentation must be monitored at the board level. Asking your executive director about the employment landscape is not just acceptable—it’s responsible.” 

 

Doug Tweedle has been in the insurance industry for more than a decade and currently serves as a Client Executive with BFL Canada in Edmonton.

Cybersecurity: The Growing Threat 

Nonprofits often believe they’re too small or niche to attract cybercriminals. But Tweedle warns that this perception makes them low-hanging fruit. With public financials readily available through Canada Revenue Agency filings, bad actors can easily target organizations sitting on significant capital. 

“Ransomware and phishing attacks are rampant,” Tweedle notes. “It’s essential to implement multi-factor authentication (MFA) across all platforms. Even small organizations with limited resources can turn on MFA through systems like Microsoft 365. Cyber exposure isn’t going away. Get on top of it.” 

Governance vs. Operations: Staying in Your Lane 

Another risk area stems from the blurring of governance and operational roles. “I see trouble when governance boards cross into operational duties,” Tweedle explains. “If a claim arises due to operational issues and the board isn’t underwritten for that, coverage could be voided.” 

Doug’s advice? Understand your bylaws and stay in your lane. “Governance boards must resist the temptation to micromanage. Focus on oversight and strategy, not day-to-day operations.” 

Disaster Response: Lessons from Wood Buffalo 

The 2016 Wood Buffalo wildfires offered a stark lesson in proactive risk management. When Wood Buffalo’s food bank executive director and board evacuated alongside 80,000 others, they faced an immediate challenge: operating as an essential service in a disaster zone. The biggest oversight? Leaving behind their checkbook, which delayed access to cash flow. 

“Disaster response plans are now a critical focus for food banks and similar organizations,” Doug shares. “The experience underscored the importance of being ready for the unexpected.” 

Public financials make nonprofits vulnerable, as bad actors target organizations with significant capital. Stay vigilant against cybersecurity threats to safeguard your mission.

Insurance Gaps: What You Don’t Know Can Hurt You 

Doug routinely conducts reviews that uncover alarming gaps in nonprofit insurance coverage. “I’ve seen organizations with no abuse liability coverage or inadequate protection for their commercial kitchens,” he says. “A robust insurance program doesn’t have to be expensive—it just needs to be complete.” 

He urges organizations to review policies every few years and ensure appraisals reflect current replacement costs. “We’re in a period of inflated construction costs. Tax assessments don’t account for rebuild values, so appraisals are critical.” 

Funders: Asking the Right Questions 

For funders, risk management is equally important. Doug advises funders to look beyond outcomes and assess governance and transparency. “Ask for reports detailing where the money went, how it was used, and the impact achieved. Ensure robust insurance and governance structures are in place.” 

Emerging Risks: The Squeeze on Funding 

Looking ahead, Doug predicts nonprofits will face increased competition for shrinking funding pools. “Funders are waking up to the duplication of efforts among nonprofits,” he observes. “Collaboration and alignment will become essential.” 

One Piece of Advice for 2025 

Doug’s closing words to nonprofit leaders are clear: “If you haven’t undertaken a comprehensive insurance review in the past two years, do it now. The landscape is changing rapidly, and staying prepared is non-negotiable.” 

As we step into 2025, these insights remind us that safeguarding our organizations isn’t just about mitigating risk—it’s about protecting our ability to fulfill our missions.