Crisis Management & Reputation Protection for Charities: What to Do When Things Go Wrong

No charity ever expects to face a crisis, yet every charity is vulnerable to one. A safeguarding concern, data breach, financial error, or a critical news story can undo years of hard work and trust in just a few hours. Even minor issues can escalate quickly in today’s fast-moving digital world, where reputations are made and broken online.

At Third Sector Experts International, we’ve supported numerous UK-registered charities and CICs (including those with overseas projects) to prepare for and recover from crises. The lesson is clear: you can’t always control what happens, but you can control how you respond.

Here’s how to build resilience, protect your reputation, and lead confidently when the unexpected occurs.

What Counts as a Crisis in the Charity Sector?

A crisis doesn’t always mean a front-page scandal. It’s any event that threatens your organisation’s operations, people, reputation, or regulatory compliance.

Common examples include:

• Safeguarding incidents involving staff, volunteers, or beneficiaries.

• Financial mismanagement or fraud allegations.

• Negative media coverage or social media backlash.

• Serious data breaches under GDPR.

• Trustee misconduct or governance failure.

• Accidents or harm occurring during service delivery.

• International incidents (e.g., in high-risk countries or humanitarian settings).

The Charity Commission treats these issues very seriously. Trustees are expected to act swiftly, transparently, and responsibly. Failing to do so can not only damage your reputation but also result in formal investigations or loss of funding.

The Real Cost of Poor Crisis Management

A poorly handled crisis can have lasting consequences:

• Loss of public trust and donations.

• Withdrawal of grants or contracts.

• Resignations from trustees or key staff.

• Regulatory intervention or statutory inquiry.

• Reputational damage that lingers for years.

Conversely, charities that handle crises openly and professionally often come out stronger. Transparency and accountability can demonstrate integrity, even under pressure.

Step 1: Preparation Is Protection

The best time to manage a crisis is before it happens. Every charity or CIC should have a Crisis Management Plan as part of its risk management and safeguarding strategy.

Your plan should include:

• Clear roles and responsibilities, who takes charge (e.g., CEO, Chair of Trustees, Communications Lead).

• Emergency contact list, trustees, senior staff, legal advisors, insurers, and PR support.

• Decision-making process, how urgent decisions are authorised and recorded.

• Communication protocols, who speaks publicly, how, and through what channels.

• Incident reporting and escalation procedures.

• Safeguarding and data protection measures.

At Third Sector Experts International, we often see charities assume “it won’t happen to us.” But good governance means preparing for the worst while working for the best.

Step 2: Recognise the Early Warning Signs

Crises rarely come out of nowhere. They often start as small issues, an internal complaint, a staff dispute, a missed deadline, or a social media comment, that snowball because no one addressed them early.

Look out for:

• Unresolved internal conflicts.

• Sudden resignations or whistleblowing.

• Complaints are escalating outside normal procedures.

• Reputational risks on social media or in the local press.

• Concerns raised about overseas partners or safeguarding abroad.

Trustees should ensure risk registers and whistleblowing procedures are reviewed regularly.

Step 3: Act Fast, but Stay Calm

When a crisis hits, speed matters, but so does composure.

1. Establish the facts

Gather accurate information from reliable sources. Avoid assumptions or speculation. Document everything from the outset.

2. Inform the right people

Trustees, staff, funders, regulators, and (if necessary) the police or local safeguarding boards must be informed promptly. If your charity operates internationally, also consider informing your in-country partners or embassies.

3. Prioritise safety and wellbeing

If people are at risk (e.g. safeguarding, humanitarian response), take immediate protective action, even before public statements are made.

4. Appoint a spokesperson

Consistency is key. All communication should come from a single trusted voice, usually the CEO or Chair.

5. Be transparent, not defensive

Avoid “no comment.” Acknowledge the situation, show concern, and commit to action. Example:

“We are aware of the concerns raised and are taking immediate steps to investigate. Our priority is the well-being of everyone affected and maintaining the highest standards of governance.”

Funders and the public respect honesty far more than silence.

Step 4: Manage the Narrative, Don’t Let It Manage You

Social media can amplify a crisis in minutes. Misinformation spreads fast, so you must communicate proactively.

Do:

• Respond quickly with facts and empathy.

• Update stakeholders as the situation evolves.

• Use your website and email list as official communication channels.

• Keep your message consistent across platforms.

Don’t:

• Argue online or delete negative comments unless they breach policies.

• Issue emotional or reactive statements.

• Speculate or apportion blame before an investigation concludes.

If journalists contact you, seek guidance from a PR or communications professional. At Third Sector Experts International, we often support clients by reviewing press statements and ensuring messages align with Charity Commission expectations.

Step 5: Notify the Charity Commission (If Required)

Trustees are legally required to report serious incidents to the Charity Commission. This includes safeguarding against breaches, significant financial losses, fraud, data breaches, or any event that damages public trust.

Failure to report can lead to regulatory action.

When reporting, include:

• What happened and when

• Who was affected

• What immediate action was taken

• What steps are being taken to prevent recurrence

If your charity operates internationally, additional due diligence may be needed, such as confirming the compliance of overseas partners or verifying transfers of funds.

Step 6: Learn, Recover, and Rebuild Trust

A crisis, while painful, is also an opportunity for reflection and improvement. Once the immediate issue is contained, trustees should oversee a post-incident review to identify lessons learned.

Ask:

• What systems failed or were missing?

• How can we strengthen governance, communication, or training?

• What could we have done earlier to prevent escalation?

Be open about your learning. Many funders appreciate honesty about how lessons have been implemented.

Case Example: Transparency Builds Credibility

One UK charity we advised faced a safeguarding allegation during an overseas project. Instead of denying or delaying, the trustees:

• Immediately suspended the programme pending investigation.

• Reported to the Charity Commission within 24 hours.

• Released a clear, factual statement expressing concern and action.

• Commissioned an independent review and implemented its findings.

Result: not only did they retain their main funder, but they were later cited as an example of good practice in transparency.

The Trustee’s Role in Crisis Governance

Trustees play a crucial role in ensuring the organisation acts responsibly and lawfully. They must:

• Take collective responsibility for decisions.

• Act in the best interests of beneficiaries.

• Seek professional advice when needed.

• Record all actions and decisions in board minutes.

The Commission’s guidance, CC3: The Essential Trustee, reinforces that strong governance is the foundation of effective crisis management.

How Third Sector Experts International Can Help

Our team supports UK-registered charities and CICs to prevent, manage, and recover from crises, especially where international operations or safeguarding risks are involved.

We can help you:

·         Develop or review your Crisis Management Policy and Plan

·         Deliver trustee and staff training on risk and reputation management

·         Provide communications and PR support during incidents

·         Conduct independent governance or safeguarding reviews

·         Advise on Charity Commission serious incident reporting

We act as your calm, professional partner, helping you navigate pressure with confidence and integrity.

Final Thoughts

Crisis management isn’t about perfection; it’s about preparation, leadership, and transparency. Handled well, a crisis can become a defining moment that strengthens your credibility rather than destroys it.

As the saying goes:

“Reputation is earned in drops and lost in buckets.”

With the right preparation and expert support, your charity can ensure those drops of trust continue to grow, even when tested.

Download our Free Crisis Management Plan Template:

Crisis Management Plan Template.pdf

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