Look Inward or Risk Being Left Out

November 11, 2026

by Victor S. Valentine, CEO of NHSA

“Efficiency is concerned with doing things right. Effectiveness is doing the right things.” — Peter F. Drucker, Management: Tasks, Responsibilities, Practices (1973)

Over the past few weeks, I have had the opportunity to engage with nonprofit and human services leaders through several enlightening convenings. NHSA launched its inaugural Policy Professionals’ Council (PPC), hosted our quarterly CEO Roundtable, and I attended the Nonprofit Risk Management Center’s 2026 Risk Summit. At the summit, I helped facilitate a session on cybersecurity and data protection alongside Piyali Das, founder of Kinfolk, LLC. One important takeaway was that strengthening cybersecurity does not have to be complicated or expensive. Sometimes, the most meaningful improvements begin with simple steps. As I helped nonprofit professionals and board volunteers navigate this often-overwhelming subject, I gained valuable insights that I believe can benefit our members.

Another conference session, appropriately titled “When the Government Comes Knocking,” reinforced a recurring theme across all three convenings: the growing importance of organizational preparedness and accountability. Increased government scrutiny of nonprofit DEI policies, donor and partner relationships, client demographics, financial oversight, and reimbursement practices has created an environment in which leaders find themselves reacting to operational challenges rather than pursuing innovative ways to serve their communities. While these external pressures deserve our attention, I left these conversations increasingly convinced that our most immediate priority may be to look inward.

During the conference, I volunteered for a fictional case study involving a government investigation into questionable grant expenditures. My role was to explain some of the imaginary organization’s rather “interesting” financial transactions. While the exercise was entertaining, its underlying lesson was sobering. Regardless of our benevolent intentions, nonprofit leaders have a responsibility to establish and maintain sound, documented, and legally compliant operations. Whether inquiries are warranted or unwarranted, we must be prepared to provide clear, logical, and defensible explanations for how our organizations conduct business.

Too often, we prioritize results over the systems and processes that make those results possible. Yet recent events remind us that weaknesses in governance, financial controls, policies, and procedures can expose even the most mission-driven organizations to significant risk. Is addressing these matters time-consuming, potentially costly, and sometimes downright boring? In a word…yes! Fortunately, many improvements can be implemented incrementally, require modest investments, and ultimately make our organizations more effective. The first step is an honest assessment of how we operate, where vulnerabilities exist, and what consequences may follow if they remain unaddressed. From there, we can prioritize improvements, engage our boards and staff, and seek professional guidance when necessary.

The bottom line is simple: Protecting our missions requires protecting our institutions. Investing in strong internal operations is not a distraction from serving our communities; it is essential to sustaining that service. In today’s environment, the cost of looking inward may be far less than the consequences of failing to do so.