How charities can manage reputational risk
January 9, 2026
As a charity leader, you know how important your organisation's reputation is. Reputation is built through what an organisation does, how it behaves, and how it communicates. For VCSE organisations, this includes how we work with communities, support staff and volunteers, deliver services and engage with partners and funders. A strong reputation helps build trust, attract funding and strengthen partnerships, while a damaged one can quickly undermine confidence and sustainability.
Actively managing reputation – by listening to feedback, communicating clearly and being prepared to respond to challenges – is therefore an essential part of good leadership and governance.
Unfortunately, reputational risks threaten charities just as much as any other organisation. They can occur as a result of:
• Financial errors or misconduct.
• Safeguarding failures or allegations of abuse.
• Data breaches.
• Conflicts of interest.
• Social media misuse.
• Environmental or social issues that contradict your mission or values.
• Offensive conduct by staff or volunteers.
• Allegations of discrimination or harassment.
• Misleading communications.
• Association with influential partners or endorsers who are caught up in a scandal.
Though reputation can be a difficult thing to manage when breaches occur or allegations are made, there are several steps that charities can take to reduce and better manage these risks:
• Adding reputational risks to your risk register.
• Practising good governance and implementing strong policies.
• Drawing up a crisis management plan.
• Committing to transparency and accountability.
• Managing stakeholders and carrying out due diligence on potential partners.
• Providing adequate training on regulatory issues, cyber and data protection procedures for staff and volunteers.
Lastly, insurance also plays a part in managing reputational risk. Policies such as cyber reflect the need to cover the cost of PR and legal work that help mitigate reputation damage. Other liability covers again can also cover the financial, legal or crisis communication costs associated with reputational risk.
Access Insurance, Chartered Insurance Brokers to the third sector, have provided NAVCA members with a guide on reputational risk to help senior decision makers identify threats and consider steps to mitigate and plan for reputational risks.
NAVCA members can download their copy by logging into the NAVCA website.
If you're part of a VCSE organisation, ask your local NAVCA member to download the guide and share it with you. Find your local NAVCA member here.
