Preparing for and responding to disasters

On this page

• Introduction
• Finding funding checklist
• Complying with funding agreements

Introduction

Securing funding is an on-going challenge for not-for-profit organisations. During a crisis these challenges are amplified.

The significant challenges that a not-for-profit organisation faces during a disaster can impact both the organisation’s ability to secure funding and its ability to comply with a funding agreement. These challenges include:

• increased competition – while disasters can attract increased attention and funding, this can lead to heightened competition among community organisations for limited resources
• shifting priorities – donors may shift their priorities toward immediate relief efforts, resulting in decreased funding for long-term projects or organisations that are not directly involved in disaster response
• communication challenges – disasters can disrupt communication channels, making it difficult for organisations to reach out to donors and seek support
• economic hardship – disasters can cause economic hardship for individuals and businesses, leading to a decline in giving
• trust and transparency – in the aftermath of a disaster, there may be increased scrutiny of not-for-profit organisations, and donors may be more cautious about where they donate
• regulatory hurdles – complying with government regulations and reporting requirements may become more difficult following a disaster (for example, due to electricity disruptions), adding to the administrative burden on the organisation and diverting resources from other activities
• limited resources to focus on pursuing funding opportunities – determining eligibility criteria can be complex with funding sources having different requirements and finding funding opportunities involves processing information and navigating grant application platforms and portals

To improve their ability to secure funding and navigate the challenges of operating during disasters, strategies that not-for-profit organisations can implement include:

• diversifying funding sources – rely on a mix of funding sources (for example, government grants, private donations, corporate sponsorships) to reduce dependence on any single source
• seeking support from government – explore opportunities for government grants, subsidies, or tax incentives that can help alleviate financial burdens
• being flexible and adaptable – be prepared to adjust fundraising strategies and programs as the situation evolves
• managing resources wisely – be mindful of expenses and allocate resources efficiently to maximise their impact and be ready to apply for funding (use the checklist below)
• collaborating with other organisations – partner with other organisations to pool resources, share expertise, and amplify the collective impact
• engaging volunteers – leverage volunteer support to reduce costs and increase capacity
• building relationships – establish relationships with disaster relief agencies, donors, volunteers, and partners before, during, and after disasters. These connections can be invaluable for securing funding and support during emergencies
• prioritising communication – maintain open and transparent communication with donors, volunteers, and stakeholders, using multiple channels (for example, social media, email, phone) to ensure messages reach your audience
• focusing on long-term sustainability – while immediate relief efforts are crucial, don't neglect long-term sustainability. Develop and implement plans for post-disaster recovery and rebuilding

Identifying what grant funding is available can be overwhelming, particularly during a disaster, when there can be many potential sources, including government (federal, state or local government), private foundations and corporate donors.

Finding funding checklist

Use the checklist below to streamline the process of finding funding opportunities and applying for funding.

Complying with funding agreements

Disasters can significantly disrupt the operations of not-for-profit organisations, making it challenging to comply with the terms of funding agreements.

Common challenges include:

• disrupted operations – disasters can damage facilities, disrupt supply chains, and displace staff, making it difficult to carry out project activities and meet reporting requirements
• resource shortages – disasters often lead to a decrease in resources (such as staff and materials) which can make it challenging to allocate resources effectively and meet funding agreement terms
• changing priorities – disasters may require organisations to shift their focus to immediate relief efforts, which can conflict with the original goals of funded projects
• communication challenges – disasters can disrupt communication channels, making it difficult to stay in touch with funders and report on progress
• data loss – physical records can be destroyed or damaged during a disaster, making it difficult to provide documentation required under funding agreements

To manage the difficulties a not-for-profit organisation may have complying with funding agreement terms during disasters, it can implement strategies such as:

• prepare a disaster plan – a disaster plan sets out procedures for responding to and recovering from disasters, including steps to protect assets, communicate with stakeholders, and maintain operations
• secure backup systems – implement robust backup systems for data, documents, and financial records to ensures access to critical information if physical facilities are damaged
• diversify operations – consider operating in multiple locations or having remote work capabilities to reduce the impact of localised disasters
• maintain strong communication channels – establish reliable communication channels with funders, partners, and stakeholders to allow for regular updates and facilitates collaboration during crises
• build financial reserves (if possible) – build a financial reserve to cover unexpected expenses and maintain operations during disruptions
• review funding agreements – regularly review funding agreements to understand reporting requirements and potential flexibilities in case of disasters
• stay informed – stay updated on potential hazards and develop contingency plans for different scenarios

For more information, see:

• our webpage on contractual obligations
• our webpage on grant funding

Disclaimer: These resources provide general information about legal issues that may arise for not-for-profit organisations in managing disasters. This information is a guide only and is not legal advice. If you or your organisation has a specific legal issue, you should seek legal advice before deciding what to do. See full disclaimer and copyright notice.

The content on this webpage was last updated in December 2024.

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