Introduction
Disasters create significant legal problems and increase the vulnerability of Australian not-for-profit organisations. During an emergency, these organisations often face a surge in demand for their services while simultaneously dealing with major disruptions to their own operations, staff, and resources, which can impact their financial stability and ability to function.
Effective disaster preparedness is therefore essential for ensuring an organisation can navigate these challenges and continue its vital work. This guide provides practical information to help your not-for-profit organisation plan for, respond to, and recover after disasters by outlining the key components of a comprehensive emergency and disaster recovery plan.
Why Your Australian Not-for-Profit Organisation Needs a Disaster Plan
Definition of a Disaster in Australia
To effectively plan for an emergency, it is important to understand what constitutes a disaster. In 2011, the Council of Australian Governments (COAG) released Australia’s National Strategy for Disaster Resilience, which provides a formal definition. The strategy acknowledges the increasing frequency of disasters in Australia and the need for a unified approach to disaster preparedness.
According to the national strategy, a disaster is defined as:
A serious disruption to community life which threatens or causes death or injury in that community and/or damage to property which is beyond the day-to-day capacity of the prescribed statutory authorities and which requires special mobilisation and organisation of resources other than those normally available to those authorities.
This definition covers a wide range of events that can cause serious disruption, including:
- Natural catastrophes such as bushfires, floods, earthquakes, and cyclones
- Other crises like human pandemics, infrastructure failures, and terrorism
Identifying Key Legal & Operational Impacts on Your Organisation
Disasters create significant legal and operational challenges that can disrupt a not-for-profit organisation’s ability to function. These problems can affect everything from workplace safety to funding and governance, making disaster preparedness essential for continuity.
Having a robust emergency plan helps mitigate these risks. Key legal problems that can arise for a not-for-profit organisation during a disaster include:
| Legal or Operational Issue | Description & Impact on Not-for-Profits |
|---|---|
| Work health and safety issues | Disasters can create unsafe working conditions (e.g., extreme heat, structural damage), imposing new obligations to protect staff and volunteers. |
| Compliance with employment laws | Managing staff availability during events like pandemics or evacuations makes it difficult to comply with fair work and other employment legislation. |
| Increased demand and funding needs | Emergencies can cause a surge in demand for services (e.g., temporary housing), requiring the need to secure additional funding under difficult circumstances. |
| Insurance and property damage | Physical damage to property (e.g., a vehicle crushed during a cyclone) can lead to complex insurance claims and operational interruptions, underscoring the need for the right not-for-profit insurance. |
| Contractual and service delivery obligations | Disruptions to essential services (e.g., electricity, internet) can prevent the organisation from meeting its contractual obligations to funders and clients. |
| Governance and compliance challenges | Inaccessible premises can make it difficult to comply with laws regulating governance, such as holding required meetings or accessing important records. |
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Core Components of Your Organisation’s Emergency & Disaster Plan
Developing Your Business Continuity Plan for Disaster Preparedness
A business continuity plan is essential for preparing your not-for-profit organisation before a disaster strikes. It works by identifying the most critical aspects of your operations and outlining how to maintain them during a disruption. An effective plan can help lessen the severity of a disaster’s impact and may even reduce the likelihood of certain disruptions occurring.
Key steps in creating this plan involve understanding your specific vulnerabilities and planning ahead. You should:
- Identify potential disasters relevant to your location and work, such as bushfires or floods
- Review your organisation’s insurance coverage to ensure it is adequate
Your business continuity plan should include several key elements to ensure comprehensive preparedness:
| Plan Component | Description & Purpose |
|---|---|
| Services and Contingencies | List all services, describe current delivery arrangements, and detail actions to be taken if these arrangements fail. |
| Key Contacts | Maintain a list of key service providers and beneficiaries, with a clear communication plan for use during a disruption. |
| Staff Skills and Information | Keep a record of staff and any specific skills they possess that could be valuable in an emergency. |
| Data Protection | Document how critical business information is protected and outline data backup procedures, which is a key part of a strong data security plan. |
| Insurance and Infrastructure | Record all organisational insurance policies and note actions taken to make property less vulnerable to damage. |
| Continuity Strategies | Identify potential strategies to maintain operations, such as arranging for temporary office accommodation. |
Creating an Emergency Action Plan to Respond to Disasters
An emergency action plan provides clear guidance on what your organisation should do during a disaster. This plan must be tailored to the specific types of emergencies your organisation is likely to face. The initial hours of a crisis are often the most critical, and having a well-defined plan allows for an efficient and coordinated response under high pressure.
While many organisations have a basic emergency plan for workplace safety, a comprehensive disaster plan must go further. It should cover all aspects of your organisation’s response beyond the immediate safety of workers and customers.
An effective emergency action plan should contain:
| Plan Component | Details & Requirements |
|---|---|
| Emergency Contacts | A list of local emergency services numbers (police, fire, ambulance) and other critical contacts needed during a crisis. |
| Evacuation Procedures | Detailed information on emergency evacuation, including a floor plan marking exits, safety equipment, and the emergency kit location. |
| Emergency Kit Location | The specific location of the emergency kit, which should contain essential items like documents, a first-aid kit, a torch, and batteries. |
| Allocated Roles | Clearly assigned roles and responsibilities for managing an emergency, ensuring designated individuals have received appropriate training. |
Establishing a Post-Disaster Recovery Plan
A recovery plan guides your organisation through the crucial period after a disaster has occurred. Its purpose is to set out the specific actions required to restore your organisation’s functions and return to normal operations. This plan is a critical component of your overall disaster preparedness strategy.
The recovery plan focuses on assessing the impact of the disaster and systematically addressing the challenges of rebuilding. It helps ensure that no critical steps are missed during a potentially chaotic time.
Your post-disaster recovery plan should include:
| Plan Component | Description & Purpose |
|---|---|
| Damage Assessment | A thorough assessment of damage to operations, listing the impact and the corresponding actions to be taken. |
| Key Recovery Contacts | A list of the people and organisations essential to operational recovery. |
| Insurance Claim Records | A detailed record of any insurance claims made, including notes from discussions with insurers. |
| Needs Analysis | An analysis of how the needs of the organisation, staff, and community have changed as a result of the disaster. |
| Communications Strategy | A prepared communications plan to connect with service providers and community members seeking help after the emergency. |
Incorporating a Pandemic & Infectious Diseases Plan
A specific plan for a pandemic or infectious disease outbreak is vital for managing the unique risks these events pose. As demonstrated by the COVID-19 pandemic, such crises can have wide-ranging impacts on not-for-profit organisations, disrupting operations in ways other disasters might not.
Key risks include:
- Widespread absenteeism of staff and volunteers
- Legal restrictions preventing service delivery
- Inability to safely reach service recipients
A dedicated pandemic plan allows your organisation to preserve its functions as much as possible, ensuring you can continue to operate and are better positioned for recovery.
Your pandemic and infectious diseases plan should detail:
| Plan Element | Description & Focus |
|---|---|
| Symptom Management | Policies for managing workers, service recipients, and visitors who present with symptoms of an infectious disease. |
| Impact of Absenteeism | An assessment of how increased absenteeism or travel restrictions will affect the organisation’s continuity. |
| Safe Service Delivery | A strategy outlining how the organisation’s services can continue to be delivered safely to the community. |
| Risk Mitigation | An analysis of the risks of infecting community members and clear steps on how to mitigate them. |
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Funding & Fundraising for Disaster Relief
The Australian Government Disaster Funding Arrangements
The Australian Government provides financial support to states and territories through the Disaster Recovery Funding Arrangements (DRFA). This cost-sharing arrangement helps deliver urgent assistance to communities affected by a disaster.
State and territory governments are responsible for:
- Identifying the needs of their communities
- Delivering assistance through their own agencies
Under the DRFA, not-for-profit organisations can access several forms of assistance to aid in their disaster recovery. This support is designed to be an emergency helping hand and may include:
- Loans and grants for voluntary non-profit organisations
- Concessional loans or interest subsidies
- Clean-up and recovery grants to help restart operations
In addition to post-disaster funding, the government also focuses on disaster preparedness through the Disaster Ready Fund (DRF). Governed by the Disaster Ready Fund Act 2019 (Cth), this fund allows up to $200 million per year to be used for projects that build resilience and reduce the risk of future natural disasters in Australia.
Managing Fundraising Compliance During an Emergency
Securing and managing funding is a significant challenge for not-for-profit organisations, and this becomes more difficult during a crisis. Complying with multi-jurisdictional fundraising laws in Australia is particularly complex, as each state and territory has its own set of:
- Rules
- Registration requirements
- Reporting obligations
During a disaster, meeting these legal requirements can be incredibly difficult. An organisation’s operations may be disrupted, records could be damaged or destroyed, and staff shortages can strain already limited resources. These factors make it challenging to keep up with the various regulatory regimes across the states and territories while also trying to respond to the emergency.
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Establishing a Tax-Deductible Australian Disaster Relief Fund
Key Characteristics of a Disaster Relief Fund
For a fund to receive tax-deductible donations for disaster relief, it must be endorsed as a deductible gift recipient (DGR). An Australian Disaster Relief Fund (ADRF) is a public fund established solely to provide money for the relief of people in Australia who are in distress as a result of a disaster. This includes assistance to help re-establish a community after an emergency.
To qualify, the fund must meet specific legal requirements. It must be either:
- A registered charity or operated by a registered charity
- An Australian government agency or operated by an Australian government agency
The types of relief an ADRF can provide are broad and vary with the nature of the disaster. This can include:
- Providing emergency shelter, health care, and food supplies
- Offering trauma counselling
- Supporting the repair and reconstruction of community infrastructure, such as:
- Aged care homes
- Schools
- Community halls damaged in the disaster
However, it’s important to note that the fund must not provide money for activities unrelated to the disaster, for people outside Australia, or for relief of distress not caused by the specific disaster.
Defining an Eligible Disaster for Your Fund
A disaster must meet specific criteria to be eligible for an ADRF. The event must be officially declared as a disaster by a treasury minister or a relevant state or territory minister. A treasury minister can make this declaration if the disaster is deemed to have both developed rapidly and resulted in widespread damage or physical suffering.
A disaster is considered to have developed rapidly even if it unfolds over several weeks. Events that typically meet this criterion include:
- Fires, floods, and earthquakes
- Cyclones, storms, and tornadoes
- Tsunamis and landslides
- Terrorist acts or large-scale accidents
It’s worth noting that disasters that develop over many years, such as drought, global warming, or soil erosion, are not likely to be considered eligible under this category. Furthermore, the disaster must also result in widespread damage to property or the natural environment, or cause the death, serious injury, or physical suffering of a large number of people.
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Your NFP Organisation’s Role in the Broader Community Response
Not-for-profit organisations are essential to building community resilience and play a significant role in the broader response to disasters. A study by Monash University highlighted that these organisations are often trusted, long-term ‘gatekeepers’ within communities, making them key partners in emergency management and disaster recovery efforts. Their established presence allows them to enter vulnerable communities and motivate collective action more effectively than external bodies.
During and after a disaster, not-for-profit organisations contribute significantly by providing immediate and long-term support. Their actions are critical for a successful community recovery and demonstrate their potential to help communities respond to disasters.
These contributions often include:
| Type of Contribution | Examples & Actions |
|---|---|
| Providing quick access to local assets | Making community kitchens available or utilising local skills and machinery for the emergency response. |
| Offering physical assistance | Supplying essential items like water, food, and toilets, or providing clean-up services and temporary shelter. |
| Supporting long-term recovery | Establishing and funding Men’s Sheds, tool libraries, or other community activities to aid in relief and recovery for years. |
The strengths of not-for-profit organisations are what make them so effective in disaster preparedness and response. They are deeply embedded in their communities, possess extensive local networks, and are known and trusted by the people they serve. This unique position allows them to support the most vulnerable members of the community and take action independently of government, providing creative and timely solutions to local issues.
Conclusion
Effective disaster preparedness through comprehensive business continuity, emergency, and recovery plans is crucial for Australian not-for-profit organisations to navigate significant legal and operational challenges. Understanding government funding arrangements, fundraising compliance, and an organisation’s vital role in the broader community response further strengthens its resilience and ability to serve those in need.
The legal complexities of disaster preparedness requires specialised guidance to ensure your organisation is protected and ready to respond effectively. Contact our expert not-for-profit lawyers at LawBridge today to secure the trusted legal support your not-for-profit needs to build a robust emergency and recovery plan.
