Non-governmental organizations (NGOs) and charities are contending with declining aid budgets, reduced donations, and rising demand for services, according to WTW’s “NGOs and Charities Reputational Risk Report 2024/2025.”
The report said operating conditions have also been affected by shifting political environments, with restrictions in some countries limiting activity. Recent scandals have further heightened concerns over potential reputational and financial harm if trust from the public, stakeholders, or governments is lost.
WTW’s third survey gathered responses from 100 senior leaders of NGOs and charities worldwide to assess how the sector is managing reputational threats. The survey explored the top perceived risks, preparedness for handling a crisis, and the capacity to manage the resulting financial impact.
Findings indicate that overall confidence in risk management processes has decreased compared to 2023, leaving organizations potentially more vulnerable to reputational and financial consequences.
WTW noted, however, that finance and corporate functions are becoming more involved in reputation oversight, signaling a shift toward managing reputation as a tangible risk rather than a branding issue.
The report found that 33% of respondents identified customer abuse as a leading reputational risk, down from 49% in 2023 and 66% in 2022. WTW said this suggests progress in vetting, safeguarding, and safety procedures.
Concerns over cyber risks have grown significantly. Sixty percent rated the fallout from a cyberattack as a top reputational risk, compared to 27% last year. WTW noted this reflects increased apprehension about the consequences of data breaches involving sensitive personal information.
Only 9% of organizations reported having a formal process for assessing and managing reputational risks tied to board-level KPIs. In addition, 34% said reputation-related risks are discussed at most board meetings, down from 53% in 2023. WTW’s data indicates this decline points to a reduction in governance frequency over these issues.
Stakeholder engagement has also fallen. Thirty percent of respondents said their organizations connected with stakeholders at least quarterly, down from 51% in 2023. The report said C-suite engagement on social media at least quarterly dropped to 52% from 80% in the previous survey, suggesting resource constraints as leaders address other operational pressures.
WTW’s findings also highlight limited financial preparedness for reputational crises. Only 2% reported having extensive modeling capabilities to quantify potential costs and liabilities, and just 1% rated their resilience to a reputational event as very good.
In a broader corporate context, previous WTW research has found that cyberattacks have emerged as the most frequently cited reputational risk globally, with 65% of organizations identifying them as a primary concern, up from 52% the previous year. Environmental issues followed closely at 64%.
Despite this heightened awareness, modeling capabilities remain limited across sectors. Only 11% of companies said they can effectively quantify the potential financial impact of a reputational crisis, a decline from 74% in 2023 and 87% in 2022, suggesting that organizations may still be underprepared to assess the true scope of such events.
What are your thoughts on this story? Please feel free to share your comments below.
