What Should a Board Do in This Sort of Nonprofit Crisis?

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Whatever else may have happened at Goodwill Toronto, a mass exodus of the board of directors is not good reputation management — for either the nonprofit or board members themselves:

When Goodwill Toronto shuttered its doors and distribution centres, its Board of Directors resigned, leaving their CEO to face the fury and mop up the mess on her own — sans salary. […]

What should a board of directors do in this situation? Without digging too deep into this morass, most boards have options in these situations, including retaining legal counsel for itself and continuing to serve. Mass resignation is a peculiar path.

The Goodwill Toronto story points to a broader message, however. Nonprofits must have sound risk management processes in place, so that there are early warning signs of crises and, hopefully, mitigation plans in place for significant threats.

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