GLAAD, an LGBTQ advocacy nonprofit, is in the news because of the chief executive’s “lavish spending.” With a particular eye on the nonprofit organization, an article in the Stanford Social Innovation Review highlights what we teach in crisis communication classes.

Joan Gerry, a nonprofit leadership expert and coach, uses the GLAAD example to remind nonprofit leaders, including boards of directors, how to avoid similar crises. She offers advice in the the following areas:

1. The media loves scandals … and if you take on the powerful, prepare for backlash.

2. All decisions have optics. Optics matter.

3. Building leadership is about more than one person.

4. Board members must understand their role, and be ready to play it.

What differs in Gerry’s advice for nonprofits compared to for-profit businesses is that they often operate from a place of scarcity. For example, executive director recruitment may be more difficult, so extravagant packages may be offered. In addition, what might be commonplace in a for-profit company’s CEO package is scrutinized in a nonprofit leader’s package. The contrast between a staff member’s benefits and clients’/recipients’ needs can seem shocking. The disparity makes the “optics” worse for nonprofit leaders and raises questions of integrity.